CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
NASDAQ:ROAD - Nasdaq - US21044C1071 - Common Stock - Currency: USD
Overall ROAD gets a fundamental rating of 4 out of 10. We evaluated ROAD against 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 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.
ROAD had positive earnings in each of the past 5 years.
ROAD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ROAD (2.23%) is comparable to the rest of the industry.
The Return On Equity of ROAD (7.61%) is comparable to the rest of the industry.
The Return On Invested Capital of ROAD (4.89%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROAD is significantly below the industry average of 16.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 7.61% | ||
| ROIC | 4.89% |
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 (2.81%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ROAD has declined.
ROAD has a better Operating Margin (6.68%) than 61.22% of its industry peers.
In the last couple of years the Operating Margin of ROAD has declined.
ROAD's Gross Margin of 14.41% is in line compared to the rest of the industry. ROAD outperforms 42.86% of its industry peers.
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 | 6.68% | ||
| PM (TTM) | 2.81% | ||
| GM | 14.41% |
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
ROAD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ROAD has more shares outstanding than it did 1 year ago.
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 3.17 indicates that ROAD is not in any danger for bankruptcy at the moment.
ROAD has a Altman-Z score (3.17) which is comparable to the rest of the industry.
The Debt to FCF ratio of ROAD is 10.77, which is on the high side as it means it would take ROAD, 10.77 years of fcf income to pay off all of its debts.
ROAD has a Debt to FCF ratio (10.77) which is comparable to the rest of the industry.
ROAD has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
ROAD's Debt to Equity ratio of 1.63 is on the low side compared to the rest of the industry. ROAD is outperformed by 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.77 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.45
WACC10.88%
2.3 Liquidity
ROAD has a Current Ratio of 1.42. This is a normal value and indicates that ROAD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ROAD (1.42) is better than 63.27% of its industry peers.
A Quick Ratio of 1.13 indicates that ROAD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, ROAD is doing worse than 65.31% of the companies in the same industry.
| 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 25.19%, 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 16.65% in the past year. This is quite good.
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)25.19%
EPS 3Y43.15%
EPS 5Y9.72%
EPS Q2Q%37.29%
Revenue 1Y (TTM)16.65%
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 46.51% yearly.
ROAD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.60% yearly.
EPS Next Y76.95%
EPS Next 2Y47.22%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue Next Year53.49%
Revenue Next 2Y32.02%
Revenue Next 3Y23.6%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 63.65 indicates a quite expensive valuation of ROAD.
Based on the Price/Earnings ratio, ROAD is valued a bit more expensive than the industry average as 63.27% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of ROAD to the average of the S&P500 Index (26.87), we can say ROAD is valued expensively.
The Price/Forward Earnings ratio is 37.60, which means the current valuation is very expensive for ROAD.
ROAD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ROAD is more expensive than 65.31% of the companies in the same industry.
ROAD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.65 | ||
| Fwd PE | 37.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROAD is valued a bit more expensive than the industry average as 67.35% of the companies are valued more cheaply.
ROAD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.75 | ||
| EV/EBITDA | 28.72 |
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.
ROAD's earnings are expected to grow with 46.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)6.55
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 |
107.57
-5.05 (-4.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.4%
Inst Owner Change-2.6%
Ins Owners1.72%
Ins Owner Change-1.84%
Market Cap6.03B
Analysts83.64
Price Target115.77 (7.62%)
Short Float %7.84%
Short Ratio7.19
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)3.21%
PT rev (3m)9.17%
EPS NQ rev (1m)-5.97%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)10.49%
Revenue NQ rev (1m)-2.6%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.65 | ||
| Fwd PE | 37.6 | ||
| P/S | 2.75 | ||
| P/FCF | 47.75 | ||
| P/OCF | 26.62 | ||
| P/B | 7.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.72 |
EPS(TTM)1.69
EY1.57%
EPS(NY)2.86
Fwd EY2.66%
FCF(TTM)2.25
FCFY2.09%
OCF(TTM)4.04
OCFY3.76%
SpS39.07
BVpS14.42
TBVpS-0.3
PEG (NY)0.83
PEG (5Y)6.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 7.61% | ||
| ROCE | 6.52% | ||
| ROIC | 4.89% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 8.33% | ||
| OM | 6.68% | ||
| PM (TTM) | 2.81% | ||
| GM | 14.41% | ||
| FCFM | 5.77% |
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%
ROICexcg growth 3Y21.65%
ROICexcg 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.77 | ||
| Debt/EBITDA | 5.01 | ||
| Cap/Depr | 85.34% | ||
| Cap/Sales | 4.58% | ||
| Interest Coverage | 3.05 | ||
| Cash Conversion | 85.91% | ||
| Profit Quality | 205.33% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.17 |
F-Score5
WACC10.88%
ROIC/WACC0.45
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 Y76.95%
EPS Next 2Y47.22%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue 1Y (TTM)16.65%
Revenue growth 3Y26.05%
Revenue growth 5Y18.42%
Sales Q2Q%50.5%
Revenue Next Year53.49%
Revenue Next 2Y32.02%
Revenue Next 3Y23.6%
Revenue Next 5YN/A
EBIT growth 1Y58.37%
EBIT growth 3Y54.42%
EBIT growth 5Y14.42%
EBIT Next Year271.7%
EBIT Next 3Y65.37%
EBIT Next 5YN/A
FCF growth 1Y453.56%
FCF growth 3YN/A
FCF growth 5Y56.76%
OCF growth 1Y284.34%
OCF growth 3Y62.75%
OCF growth 5Y30.47%