Agreed eighthwonder. Share buybacks are mixed blessing. Reinvesting dividends is a painless way of increasing holding. First div should bring jump in share price |
Buybacks also benefit EPS etc which can often increase directors' bonuses. |
Buy backs facilitate shareholders to leave the register and I would prefer actions which encourage new permanent interest in the company, such as dividends. Furthermore, buy backs in smaller companies exacerbate liquidity issues. One reason why buy backs occur is that their brokers earn fees for undertaking them whereas they earn nothing from dividend policies. Cynical I know, but the brokers earn their money through advisory fees rather than share trading. |
Personally prefer a share buyback at these levels. |
Great summary. It does certainly highlight even now, how ridiculously undervalued Costain is! Which some of us have been stating for a while.There is an investor call at same time for anyone interested check Costain website. Encourage to attend or listen to recording. |
I'm wondering, based on cash position and pension situation still being neutral, that they'll either increase divi or another buyback.
At these share price levels another 10m buyback is more effective. IMO |
Already posted this, but worth re-posting.
Year end net cash projected to be 160m
EV of Costain is currently circa 118m
Operating profit projected to be between - £41.9m and £43.3m
Low single digit PER.
Results 11th March. |
Some big buys ?? |
No brainer comes to mind ! |
M.cap - 264m
End of year cash confirmed @ 160m
EV - 104m
Market guidance for +40m operating profit.
Do the maths on the PE here.
Wondering if they might start raising the div, results next month, if not, I'd expect another buy back announcement. |
I hope your right for your sake I’ll keep my fingers crossed for you |
I will walk naked through the streets of London if Costian share price is not well above £1.30 come end of 2025.....and that's not a pretty sight i can tell ya |
Where does this share price go from here the good news is out(recent trade update) government spending and brokers forecasts are positive I am hoping that eps will be 13p for 2024 this year could be 14p but as the market values these companies on a low ratio of 7-8 times it’s hard to see how the price will go up to 150-160 that would assume eps of close to 20 so imo the price will trade between 90-100 for this year not withstanding any major market movements |
Totally agree Sophia so undervalued still. Have a large holding but may add some more at these prices if it doesn't start moving north.As before when some of us patiently awaited when languishing around 50p levels, same here this will rise again to higher levels starting to reflect a proper evaluation. My initial target is 150 to 180p range for next 12 months.FYI 4 analysts covering this stock. All Strong Buy ratings with targets with min estimate of 115p and max 187p, with average 139p 12 month share price forecast.https://www.tradingview.com/symbols/LSE-COST/forecast/Sit tight and hopefully we will all have made a nice 50% increase in the value of our Costain holding by Christmas. Let's see how the year pans out. Good luck a?l. |
Please note: 7.9% of NAV!. That is huuge conviction |
 From Ennismore Fund's newsletter
Costain Group Plc – UK engineering and construction company (7.9% NAV)
Costain Group Plc is a GBP 288m market capitalised UK construction company focussed on infrastructure and regulated
sectors, especially in the Transportation segment i.e. mainly road and rail (71% of 2023 revenue) with the remainder in
the Natural Resources segment; water, energy, and defence. The increasing capex requirements for the water industry to
upgrade their Victorian era infrastructure should be a key tailwind going forward, as well as work linked to carbon capture
projects in the longer term. The decision to finish the HS2 project in Euston rather than Old Oak Common is also helpful.
They don’t have any fixed price work and lean to open book framework contracts, which should lead to stable margins
overall. They target over 5% medium term operating margin, helped by higher margin consultancy and engineering work
and we think these targets are attainable. Their margin is also assisted by exposure to “green” areas such as the multi-
GBP billion carbon capture and storage project recently confirmed where they tend to be on the consultancy and project
management side rather than contract delivery.
We see operating profit of around GBP 48m this year, growing by over 10% and with sector leading margins. They are
currently buying back stock which we see as sustainable and alongside the dividend leads to return to shareholders of
around 5 percent a year, but we think these could easily step up. We expect around net cash of GBP 150m adjusted for
the negative working capital on the balance sheet. Placing a multiple of 8 times operating profit post tax plus adjusted
cash gives upside of over 45% to 160p to the end of 2025. |
What was the outcome? |
Hopefully Reeves announcements today on increased infrastructure spending to get UK growth started will be furtger good news for Costain |
Do you actually have any clue what these organisations do? Surely any business that aims to welcome all gets the best possible talent. |
Thanks KKT. That was an informative read. |
That's one positive about Trump, he's put a stop to all this woke rubbish. |
Surely it's a bit extreme to write off a company with good fundamentals just because they've signed up to a diversity charity. |
I was tempted to buy COST but I see they are Stonewall Diversity Champions and signed up to all the woke DEI rubbish.
If they's just doing this for show - to pass muster with the banks - fair enough, but if the directors are dim enough to take DEI seriously then this is one to avoid IMHO. |
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