CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
NASDAQ:ROAD - Nasdaq - US21044C1071 - Common Stock - Currency: USD
Taking everything into account, ROAD scores 4 out of 10 in our fundamental rating. ROAD was compared to 49 industry peers in the Construction & Engineering industry. ROAD has a medium profitability rating, but doesn't score so well on its financial health evaluation. ROAD shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
ROAD had positive earnings in the past year.
In the past year ROAD had a positive cash flow from operations.
Each year in the past 5 years ROAD has been profitable.
Each year in the past 5 years ROAD had a positive operating cash flow.
1.2 Ratios
ROAD has a Return On Assets (2.22%) which is in line with its industry peers.
The Return On Equity of ROAD (7.57%) is comparable to the rest of the industry.
ROAD has a Return On Invested Capital (4.88%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ROAD is significantly below the industry average of 16.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 7.57% | ||
| ROIC | 4.88% |
ROA(3y)3.48%
ROA(5y)3.87%
ROE(3y)8.73%
ROE(5y)8.32%
ROIC(3y)5.11%
ROIC(5y)5.38%
1.3 Margins
ROAD has a Profit Margin (2.79%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ROAD has declined.
With a decent Operating Margin value of 6.66%, ROAD is doing good in the industry, outperforming 61.22% of the companies in the same industry.
In the last couple of years the Operating Margin of ROAD has declined.
With a Gross Margin value of 14.41%, ROAD perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Gross Margin of ROAD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.66% | ||
| PM (TTM) | 2.79% | ||
| GM | 14.41% |
OM growth 3Y22.42%
OM growth 5Y-3.42%
PM growth 3Y19.48%
PM growth 5Y-7.22%
GM growth 3Y2.46%
GM growth 5Y-1.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROAD is destroying value.
Compared to 1 year ago, ROAD has more shares outstanding
The number of shares outstanding for ROAD has been increased compared to 5 years ago.
ROAD has a worse debt/assets ratio than last year.
2.2 Solvency
ROAD has an Altman-Z score of 3.01. This indicates that ROAD is financially healthy and has little risk of bankruptcy at the moment.
ROAD has a Altman-Z score (3.01) which is comparable to the rest of the industry.
The Debt to FCF ratio of ROAD is 10.79, which is on the high side as it means it would take ROAD, 10.79 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.79, ROAD perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
A Debt/Equity ratio of 1.63 is on the high side and indicates that ROAD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.63, ROAD is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.79 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.46
WACC10.62%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ROAD should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.42, ROAD is doing good in the industry, outperforming 67.35% of the companies in the same industry.
ROAD has a Quick Ratio of 1.13. 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 Quick ratio of 1.13. This is in the lower half of the industry: ROAD underperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
ROAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.64%, which is quite impressive.
The Earnings Per Share has been growing by 9.72% on average over the past years. This is quite good.
The Revenue has grown by 31.49% in the past year. This is a very strong growth!
ROAD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.42% yearly.
EPS 1Y (TTM)25.64%
EPS 3Y43.15%
EPS 5Y9.72%
EPS Q2Q%500%
Revenue 1Y (TTM)31.49%
Revenue growth 3Y26.05%
Revenue growth 5Y18.42%
Sales Q2Q%53.91%
3.2 Future
Based on estimates for the next years, ROAD will show a very strong growth in Earnings Per Share. The EPS will grow by 46.51% on average per year.
Based on estimates for the next years, ROAD will show a very strong growth in Revenue. The Revenue will grow by 23.60% on average per year.
EPS Next Y76.95%
EPS Next 2Y47.22%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue Next Year52.47%
Revenue Next 2Y31.04%
Revenue Next 3Y23.6%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 71.56 indicates a quite expensive valuation of ROAD.
Based on the Price/Earnings ratio, ROAD is valued a bit more expensive than 61.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROAD to the average of the S&P500 Index (27.35), we can say ROAD is valued expensively.
The Price/Forward Earnings ratio is 36.77, which means the current valuation is very expensive for ROAD.
Based on the Price/Forward Earnings ratio, ROAD is valued a bit more expensive than 65.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.54. ROAD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.56 | ||
| Fwd PE | 36.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROAD indicates a slightly more expensive valuation: ROAD is more expensive than 63.27% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROAD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.78 | ||
| EV/EBITDA | 26.82 |
4.3 Compensation for Growth
ROAD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ROAD's earnings are expected to grow with 46.51% in the coming years.
PEG (NY)0.93
PEG (5Y)7.36
EPS Next 2Y47.22%
EPS Next 3Y46.51%
5. Dividend
5.1 Amount
No dividends for ROAD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ROAD (7/25/2025, 9:53:57 AM)
105.19
+1.83 (+1.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change-0.14%
Ins Owners1.72%
Ins Owner Change-1.84%
Market Cap5.89B
Analysts83.64
Price Target114.75 (9.09%)
Short Float %7.44%
Short Ratio6.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)127.61%
Min EPS beat(2)66.09%
Max EPS beat(2)189.13%
EPS beat(4)3
Avg EPS beat(4)64.67%
Min EPS beat(4)-3.48%
Max EPS beat(4)189.13%
EPS beat(8)7
Avg EPS beat(8)48.23%
EPS beat(12)10
Avg EPS beat(12)41.72%
EPS beat(16)11
Avg EPS beat(16)12.32%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)0.15%
Max Revenue beat(2)6.39%
Revenue beat(4)3
Avg Revenue beat(4)1.35%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)6.39%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)8
Avg Revenue beat(12)3.54%
Revenue beat(16)10
Avg Revenue beat(16)2.8%
PT rev (1m)3.88%
PT rev (3m)8.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.41%
EPS NY rev (1m)0%
EPS NY rev (3m)10.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.56 | ||
| Fwd PE | 36.77 | ||
| P/S | 2.69 | ||
| P/FCF | 46.78 | ||
| P/OCF | 26.08 | ||
| P/B | 7.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.82 |
EPS(TTM)1.47
EY1.4%
EPS(NY)2.86
Fwd EY2.72%
FCF(TTM)2.25
FCFY2.14%
OCF(TTM)4.03
OCFY3.83%
SpS39.07
BVpS14.42
TBVpS-0.3
PEG (NY)0.93
PEG (5Y)7.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 7.57% | ||
| ROCE | 6.51% | ||
| ROIC | 4.88% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 8.32% | ||
| OM | 6.66% | ||
| PM (TTM) | 2.79% | ||
| GM | 14.41% | ||
| FCFM | 5.76% |
ROA(3y)3.48%
ROA(5y)3.87%
ROE(3y)8.73%
ROE(5y)8.32%
ROIC(3y)5.11%
ROIC(5y)5.38%
ROICexc(3y)5.25%
ROICexc(5y)6.31%
ROICexgc(3y)6.59%
ROICexgc(5y)7.68%
ROCE(3y)6.82%
ROCE(5y)7.18%
ROICexcg growth 3Y21.56%
ROICexcg growth 5Y-9.56%
ROICexc growth 3Y19.08%
ROICexc growth 5Y-11.47%
OM growth 3Y22.42%
OM growth 5Y-3.42%
PM growth 3Y19.48%
PM growth 5Y-7.22%
GM growth 3Y2.46%
GM growth 5Y-1.23%
F-Score5
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.79 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 85.47% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 86% | ||
| Profit Quality | 205.98% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.01 |
F-Score5
WACC10.62%
ROIC/WACC0.46
Cap/Depr(3y)107.71%
Cap/Depr(5y)114.01%
Cap/Sales(3y)5.46%
Cap/Sales(5y)5.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.64%
EPS 3Y43.15%
EPS 5Y9.72%
EPS Q2Q%500%
EPS Next Y76.95%
EPS Next 2Y47.22%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue 1Y (TTM)31.49%
Revenue growth 3Y26.05%
Revenue growth 5Y18.42%
Sales Q2Q%53.91%
Revenue Next Year52.47%
Revenue Next 2Y31.04%
Revenue Next 3Y23.6%
Revenue Next 5YN/A
EBIT growth 1Y57.98%
EBIT growth 3Y54.31%
EBIT growth 5Y14.37%
EBIT Next Year276.92%
EBIT Next 3Y65.37%
EBIT Next 5YN/A
FCF growth 1Y452.94%
FCF growth 3YN/A
FCF growth 5Y56.72%
OCF growth 1Y283.7%
OCF growth 3Y62.73%
OCF growth 5Y30.46%