CONSTRUCTION PARTNERS INC-A (ROAD)
US21044C1071 - Common Stock
We assign a fundamental rating of 5 out of 10 to ROAD. ROAD was compared to 40 industry peers in the Construction & Engineering industry. ROAD has only an average score on both its financial health and profitability. ROAD is valued quite expensively, but it does show have an excellent growth rating. These ratings could make ROAD a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
ROAD had positive earnings in the past year.
ROAD had a positive operating cash flow in the past year.
ROAD had positive earnings in each of the past 5 years.
Each year in the past 5 years ROAD had a positive operating cash flow.
1.2 Ratios
ROAD's Return On Assets of 4.46% is fine compared to the rest of the industry. ROAD outperforms 70.00% of its industry peers.
With a decent Return On Equity value of 10.93%, ROAD is doing good in the industry, outperforming 70.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.27%, ROAD is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ROAD is below the industry average of 8.46%.
The 3 year average ROIC (3.94%) for ROAD is below the current ROIC(6.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 10.93% | ||
| ROIC | 6.27% |
ROA(3y)2.83%
ROA(5y)4.6%
ROE(3y)6.37%
ROE(5y)8.42%
ROIC(3y)3.94%
ROIC(5y)6.06%
1.3 Margins
The Profit Margin of ROAD (3.52%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ROAD has declined.
With a Operating Margin value of 5.22%, ROAD perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ROAD has declined.
ROAD's Gross Margin of 13.46% is in line compared to the rest of the industry. ROAD outperforms 42.50% of its industry peers.
ROAD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.22% | ||
| PM (TTM) | 3.52% | ||
| GM | 13.46% |
OM growth 3Y-13.18%
OM growth 5Y-7.24%
PM growth 3Y-15.14%
PM growth 5Y-15.95%
GM growth 3Y-6.87%
GM growth 5Y-3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROAD is destroying value.
Compared to 1 year ago, ROAD has more shares outstanding
ROAD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROAD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.07 indicates that ROAD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.07, ROAD is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of ROAD is 4.62, which is a neutral value as it means it would take ROAD, 4.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ROAD (4.62) is better than 70.00% of its industry peers.
ROAD has a Debt/Equity ratio of 0.82. This is a neutral value indicating ROAD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, ROAD is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | 4.07 |
ROIC/WACC0.67
WACC9.37%
2.3 Liquidity
ROAD has a Current Ratio of 1.75. This is a normal value and indicates that ROAD is financially healthy and should not expect problems in meeting its short term obligations.
ROAD has a Current ratio of 1.75. This is amongst the best in the industry. ROAD outperforms 82.50% of its industry peers.
ROAD has a Quick Ratio of 1.39. This is a normal value and indicates that ROAD is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.39, ROAD is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
ROAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 217.65%, which is quite impressive.
Measured over the past 5 years, ROAD shows a small growth in Earnings Per Share. The EPS has been growing by 5.85% on average per year.
Looking at the last year, ROAD shows a quite strong growth in Revenue. The Revenue has grown by 19.12% in the last year.
ROAD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.11% yearly.
EPS 1Y (TTM)217.65%
EPS 3Y6.04%
EPS 5Y5.85%
EPS growth Q2Q375%
Revenue 1Y (TTM)19.12%
Revenue growth 3Y25.78%
Revenue growth 5Y18.11%
Revenue growth Q2Q16%
3.2 Future
The Earnings Per Share is expected to grow by 35.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.36% on average over the next years. This is quite good.
EPS Next Y45.65%
EPS Next 2Y36.51%
EPS Next 3Y35.93%
EPS Next 5YN/A
Revenue Next Year15.85%
Revenue Next 2Y13.32%
Revenue Next 3Y15.36%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 47.31, ROAD can be considered very expensive at the moment.
ROAD's Price/Earnings ratio is a bit more expensive when compared to the industry. ROAD is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.95, ROAD is valued quite expensively.
With a Price/Forward Earnings ratio of 29.48, ROAD can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ROAD is valued a bit more expensive than 65.00% of the companies in the same industry.
ROAD is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.31 | ||
| Fwd PE | 29.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROAD.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROAD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.2 | ||
| EV/EBITDA | 18.28 |
4.3 Compensation for Growth
ROAD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ROAD's earnings are expected to grow with 35.93% in the coming years.
PEG (NY)1.04
PEG (5Y)8.09
EPS Next 2Y36.51%
EPS Next 3Y35.93%
5. Dividend
5.1 Amount
ROAD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CONSTRUCTION PARTNERS INC-A
NASDAQ:ROAD (4/23/2024, 8:42:31 AM)
51.1
+0.64 (+1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.31 | ||
| Fwd PE | 29.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.04
PEG (5Y)8.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 10.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.22% | ||
| PM (TTM) | 3.52% | ||
| GM | 13.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)217.65%
EPS 3Y6.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y45.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.12%
Revenue growth 3Y25.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y