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Operations: The company generates revenue primarily from the transportation sector, contributing £900.30 million, and the natural resources segment, adding £406.60 million.

Costain Group, a UK construction firm, is trading at 51.7% below its estimated fair value, showcasing its potential as an undervalued opportunity. The company has demonstrated impressive earnings growth of 39.3% over the past year, outpacing the broader construction industry’s 18.7%. With no debt on its books now compared to a debt-to-equity ratio of 50.3% five years ago, Costain's financial health appears robust. Recent developments include being added to the S&P Global BMI Index and announcing a share repurchase program worth £10 million aimed at reducing share capital and enhancing shareholder value through increased earnings per share.

• Delve into the full analysis health report here for a deeper understanding of Costain Group.

• Evaluate Costain Group's historical performance by accessing our past performance report.

Mears Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Mears Group plc, along with its subsidiaries, delivers a range of outsourced services to both public and private sectors in the UK and has a market capitalization of £346.31 million.

Operations: The revenue streams for Mears Group primarily come from its Management segment at £591.63 million and Maintenance segment at £551.73 million. The company's net profit margin is 3.5%, reflecting its profitability after accounting for costs and expenses related to these services.

Mears Group, a notable player in the UK market, is showing robust financial health with high-quality earnings and no debt. The company has seen impressive earnings growth of 42.6% over the past year, outpacing the Commercial Services industry average of 20.7%. Trading at a price-to-earnings ratio of 8.4x, it offers good value compared to the UK market's 16.5x average. Recent buybacks include repurchasing 5,575,561 shares for £20 million between February and June 2024. For H1 2024, Mears reported sales of £580 million and net income of £22.73 million against last year's figures of £525 million and £16 million respectively.

• Navigate through the intricacies of Mears Group with our comprehensive health report here.

• Gain insights into Mears Group's historical performance by reviewing our past performance report.

Summing It All Up

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AIM:BPM LSE:COST and LSE:MER.

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