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%)
We assign a fundamental rating of 5 out of 10 to ROAD. ROAD was compared to 55 industry peers in the Construction & Engineering industry. There are concerns on the financial health of ROAD while its profitability can be described as average. ROAD is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year ROAD was profitable.
In the past year ROAD had a positive cash flow from operations.
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
With a Return On Assets value of 2.55%, ROAD perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
The Return On Equity of ROAD (8.73%) is comparable to the rest of the industry.
ROAD has a Return On Invested Capital of 5.74%. This is comparable to the rest of the industry: ROAD outperforms 49.09% of its industry peers.
ROAD had an Average Return On Invested Capital over the past 3 years of 5.11%. This is significantly below the industry average of 17.18%.
The last Return On Invested Capital (5.74%) for ROAD is above the 3 year average (5.11%), which is a sign of increasing profitability.
| 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 has a better Operating Margin (7.43%) than 61.82% of its industry peers.
ROAD's Operating Margin has declined in the last couple of years.
ROAD has a Gross Margin (14.85%) which 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
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
ROAD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ROAD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.18 indicates that ROAD is not in any danger for bankruptcy at the moment.
The Altman-Z score of ROAD (3.18) is comparable to the rest of the 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.
ROAD has a Debt to FCF ratio (9.38) which is in line with its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that ROAD has dependencies on debt financing.
ROAD has a worse Debt to Equity ratio (1.63) than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 9.38 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.56
WACC10.3%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ROAD should not have too much problems paying its short term obligations.
ROAD's Current ratio of 1.47 is fine compared to the rest of the industry. ROAD outperforms 69.09% of its industry peers.
ROAD has a Quick Ratio of 1.20. 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 (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.19% over the past year.
ROAD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.72% yearly.
ROAD shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.18%.
The Revenue has been growing by 18.42% on average over the past years. This is quite good.
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
Based on the Price/Earnings ratio of 67.66, the valuation of ROAD can be described as expensive.
ROAD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ROAD to the average of the S&P500 Index (26.11), we can say ROAD is valued expensively.
ROAD is valuated quite expensively with a Price/Forward Earnings ratio of 37.18.
The rest of the industry has a similar Price/Forward Earnings ratio as ROAD.
ROAD is valuated expensively when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.66 | ||
| Fwd PE | 37.18 |
4.2 Price Multiples
ROAD's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 24.49 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ROAD's earnings are expected to grow with 39.72% in the coming years. This may justify a more expensive valuation.
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-2.48%
Ins Owners1.64%
Ins Owner Change-4.13%
Market Cap6.41B
Revenue(TTM)2.45B
Net Income(TTM)74.52M
Analysts87.27
Price Target131.24 (14.77%)
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)6.04%
PT rev (3m)14.37%
EPS NQ rev (1m)-1.77%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)3.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
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 | 24.49 |
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 | 3.18 |
F-Score5
WACC10.3%
ROIC/WACC0.56
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.