# Costain Group PLC (COST.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Construction & Engineering. Price 226p, market value 595 millionp.

## Valuation
- **P/E (trailing): 16.1×** (5-yr avg 833.2×, 3-yr avg 970.8×). Costain Group PLC trades at 16.1× trailing earnings, well below its own five-year average of 833.2×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 12.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.47**. A PEG of 0.47 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.7×**. Enterprise value is 3.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 14.6%** (5-yr avg 0.2%). Free cash flow equals 14.6% of the market value, above its five-year average of 0.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.2%**. The inverse of the P/E: 6.2% of the price is earned each year.

## Profitability
- **Gross margin: 9.4%**. Costain Group PLC keeps 9.4% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 3.4%**. 3.4% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 3.6%**. 3.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.4%**. 14.4% on shareholders' equity is solid.
- **Return on invested capital: 92.1%**. Return on all capital, debt included, is 92.1%: comfortably above what that capital costs.
- **Return on assets: 12.1%**. Each dollar of assets produces 12.1% of profit.

## Growth
- **Revenue growth (1 yr): -16.4%** (3-yr -9.7%/yr, 5-yr 1.3%/yr). Revenue fell 16.4% over the last year, against 1.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 27.3%** (3-yr 14.4%/yr). Earnings per share rose 27.3%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 54.2%/yr**. Free cash flow has compounded at 54.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.10**. Debt is 0.10 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Costain Group PLC holds more cash than debt.
- **Interest coverage: 9.6×**. Operating profit covers interest 9.6× over, a safe margin.
- **Current ratio: 1.44** (quick 1.44). Current assets cover the next year's liabilities 1.44 times.
- **Altman Z-score: 4.22**. A Z-score of 4.22 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.29%** (0p per share, trailing). Costain Group PLC yields 2.29%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 20%** (12% of free cash flow). 20% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Shareholder yield: 6.2%**. Dividends plus net buybacks return 6.2% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (6 analysts). 6 analysts cover Costain Group PLC; the consensus is strong_buy, with an average price target of 257p (+14% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 77.4%** (YTD 43.2%, 3-mo 18.6%). The shares are up 77.4% over twelve months including dividends.
- **From 52-week high: -6.3%** (81.5% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): 0.93** (volatility 33%). Beta of 0.93 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=COST.L · Page: https://foliofundamentals.com/stocks/cost.l

Not investment advice.