CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
USA - NASDAQ:ROAD - US21044C1071 - Common Stock
114.35 USD
+1.67 (+1.48%)
114.35 USD
0 (0%)
ROAD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 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 is valued quite expensive, but it does show an excellent growth.
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.
In the past 5 years ROAD has always been profitable.
In the past 5 years ROAD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.55%, ROAD is in line with its industry, outperforming 52.73% of the companies in the same industry.
ROAD's Return On Equity of 8.73% is in line compared to the rest of the industry. ROAD outperforms 52.73% of its industry peers.
ROAD has a Return On Invested Capital (5.74%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ROAD is significantly below the industry average of 17.12%.
The 3 year average ROIC (5.11%) for ROAD is below the current ROIC(5.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 8.73% | ||
| ROIC | 5.74% |
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
With a Profit Margin value of 3.04%, ROAD perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
In the last couple of years the Profit Margin of ROAD has declined.
ROAD's Operating Margin of 7.43% is fine compared to the rest of the industry. ROAD outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of ROAD has declined.
The Gross Margin of ROAD (14.85%) is comparable to the rest of the 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 | 7.43% | ||
| PM (TTM) | 3.04% | ||
| GM | 14.85% |
OM growth 3Y22.51%
OM growth 5Y-3.38%
PM growth 3Y19.44%
PM growth 5Y-7.24%
GM growth 3Y2.46%
GM growth 5Y-1.23%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROAD is destroying value.
ROAD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROAD has more shares outstanding
ROAD has a worse debt/assets ratio than last year.
2.2 Solvency
ROAD has an Altman-Z score of 3.15. This indicates that ROAD is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.15, ROAD perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
The Debt to FCF ratio of ROAD is 9.38, which is on the high side as it means it would take ROAD, 9.38 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ROAD (9.38) is comparable to the rest of the 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 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 9.38 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.54
WACC10.58%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ROAD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.47, ROAD is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that ROAD should not have too much problems paying its short term obligations.
ROAD has a Quick ratio of 1.20. This is comparable to the rest of the industry: ROAD outperforms 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
ROAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.19%, which is quite impressive.
ROAD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.72% yearly.
The Revenue has grown by 39.18% in the past year. This is a very strong growth!
Measured over the past years, ROAD shows a quite strong growth in Revenue. The Revenue has been growing by 18.42% on average per year.
EPS 1Y (TTM)25.19%
EPS 3Y43.15%
EPS 5Y9.72%
EPS Q2Q%37.29%
Revenue 1Y (TTM)39.18%
Revenue growth 3Y26.05%
Revenue growth 5Y18.42%
Sales Q2Q%50.5%
3.2 Future
ROAD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.72% yearly.
ROAD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.08% yearly.
EPS Next Y72.13%
EPS Next 2Y52.64%
EPS Next 3Y39.72%
EPS Next 5YN/A
Revenue Next Year53.23%
Revenue Next 2Y31.84%
Revenue Next 3Y24.08%
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 67.66 indicates a quite expensive valuation of ROAD.
Compared to the rest of the industry, the Price/Earnings ratio of ROAD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.10. ROAD is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 37.18 indicates a quite expensive valuation of ROAD.
ROAD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ROAD to the average of the S&P500 Index (22.52), we can say ROAD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.66 | ||
| Fwd PE | 37.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROAD is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROAD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.04 | ||
| EV/EBITDA | 24.19 |
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 39.72% in the coming years.
PEG (NY)0.94
PEG (5Y)6.96
EPS Next 2Y52.64%
EPS Next 3Y39.72%
5. Dividend
5.1 Amount
No dividends for ROAD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.35
+1.67 (+1.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners101.29%
Inst Owner Change-1.58%
Ins Owners1.64%
Ins Owner Change-4.13%
Market Cap6.41B
Revenue(TTM)2.45B
Net Income(TTM)74.52M
Analysts87.27
Price Target123.76 (8.23%)
Short Float %6.41%
Short Ratio6.44
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)1
Avg EPS beat(2)92.89%
Min EPS beat(2)-3.35%
Max EPS beat(2)189.13%
EPS beat(4)2
Avg EPS beat(4)62.09%
Min EPS beat(4)-3.48%
Max EPS beat(4)189.13%
EPS beat(8)6
Avg EPS beat(8)45.23%
EPS beat(12)9
Avg EPS beat(12)34.12%
EPS beat(16)11
Avg EPS beat(16)15%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)0.15%
Revenue beat(4)2
Avg Revenue beat(4)0.52%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)6.39%
Revenue beat(8)4
Avg Revenue beat(8)0.14%
Revenue beat(12)7
Avg Revenue beat(12)1.92%
Revenue beat(16)10
Avg Revenue beat(16)3.4%
PT rev (1m)0%
PT rev (3m)7.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.66 | ||
| Fwd PE | 37.18 | ||
| P/S | 2.62 | ||
| P/FCF | 42.04 | ||
| P/OCF | 23.29 | ||
| P/B | 7.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.19 |
EPS(TTM)1.69
EY1.48%
EPS(NY)3.08
Fwd EY2.69%
FCF(TTM)2.72
FCFY2.38%
OCF(TTM)4.91
OCFY4.29%
SpS43.69
BVpS15.21
TBVpS-0.08
PEG (NY)0.94
PEG (5Y)6.96
Graham Number24.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 8.73% | ||
| ROCE | 7.67% | ||
| ROIC | 5.74% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 9.72% | ||
| OM | 7.43% | ||
| PM (TTM) | 3.04% | ||
| GM | 14.85% | ||
| FCFM | 6.23% |
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)7.67%
ROCE(3y)6.83%
ROCE(5y)7.18%
ROICexgc growth 3Y21.65%
ROICexgc growth 5Y-9.52%
ROICexc growth 3Y19.17%
ROICexc growth 5Y-11.43%
OM growth 3Y22.51%
OM growth 5Y-3.38%
PM growth 3Y19.44%
PM growth 5Y-7.24%
GM growth 3Y2.46%
GM growth 5Y-1.23%
F-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 9.38 | ||
| Debt/EBITDA | 4.41 | ||
| Cap/Depr | 91.89% | ||
| Cap/Sales | 5.01% | ||
| Interest Coverage | 2.81 | ||
| Cash Conversion | 87.24% | ||
| Profit Quality | 204.75% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.15 |
F-Score5
WACC10.58%
ROIC/WACC0.54
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)25.19%
EPS 3Y43.15%
EPS 5Y9.72%
EPS Q2Q%37.29%
EPS Next Y72.13%
EPS Next 2Y52.64%
EPS Next 3Y39.72%
EPS Next 5YN/A
Revenue 1Y (TTM)39.18%
Revenue growth 3Y26.05%
Revenue growth 5Y18.42%
Sales Q2Q%50.5%
Revenue Next Year53.23%
Revenue Next 2Y31.84%
Revenue Next 3Y24.08%
Revenue Next 5YN/A
EBIT growth 1Y72.71%
EBIT growth 3Y54.42%
EBIT growth 5Y14.42%
EBIT Next Year274.37%
EBIT Next 3Y67.32%
EBIT Next 5YN/A
FCF growth 1Y510.32%
FCF growth 3YN/A
FCF growth 5Y56.76%
OCF growth 1Y128.17%
OCF growth 3Y62.75%
OCF growth 5Y30.47%
CONSTRUCTION PARTNERS INC-A / ROAD FAQ
Can you provide the ChartMill fundamental rating for CONSTRUCTION PARTNERS INC-A?
ChartMill assigns a fundamental rating of 5 / 10 to ROAD.
What is the valuation status of CONSTRUCTION PARTNERS INC-A (ROAD) stock?
ChartMill assigns a valuation rating of 3 / 10 to CONSTRUCTION PARTNERS INC-A (ROAD). This can be considered as Overvalued.
What is the profitability of ROAD stock?
CONSTRUCTION PARTNERS INC-A (ROAD) has a profitability rating of 5 / 10.
What are the PE and PB ratios of CONSTRUCTION PARTNERS INC-A (ROAD) stock?
The Price/Earnings (PE) ratio for CONSTRUCTION PARTNERS INC-A (ROAD) is 67.66 and the Price/Book (PB) ratio is 7.52.