CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
USA - NASDAQ:ROAD - US21044C1071 - Common Stock
123.41 USD
-0.72 (-0.58%)
We assign a fundamental rating of 5 out of 10 to ROAD. ROAD was compared to 53 industry peers in the Construction & Engineering industry. While ROAD is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
ROAD's Return On Assets of 2.55% is in line compared to the rest of the industry. ROAD outperforms 50.94% of its industry peers.
With a Return On Equity value of 8.73%, ROAD perfoms like the industry average, outperforming 52.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.74%, ROAD is in line with its industry, outperforming 49.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ROAD is significantly below the industry average of 16.96%.
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
Looking at the Profit Margin, with a value of 3.04%, ROAD is in line with its industry, outperforming 50.94% of the companies in the same industry.
ROAD's Profit Margin has declined in the last couple of years.
ROAD has a Operating Margin of 7.43%. This is in the better half of the industry: ROAD outperforms 62.26% 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 in line with its industry peers.
ROAD's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for ROAD has been increased compared to 1 year ago.
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 3.34. This indicates that ROAD is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.34, ROAD perfoms like the industry average, outperforming 52.83% 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.
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 Debt to Equity ratio of 1.63. This is in the lower half of the industry: ROAD underperforms 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 9.38 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.51
WACC11.37%
2.3 Liquidity
ROAD has a Current Ratio of 1.47. 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 Current ratio value of 1.47, ROAD is doing good in the industry, outperforming 69.81% 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 49.06% of its industry peers.
| 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.
The Earnings Per Share has been growing by 9.72% on average over the past years. This is quite good.
Looking at the last year, ROAD shows a very strong growth in Revenue. The Revenue has grown by 39.18%.
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
Based on estimates for the next years, ROAD will show a very strong growth in Earnings Per Share. The EPS will grow by 41.55% 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 24.28% on average per year.
EPS Next Y72.13%
EPS Next 2Y52.64%
EPS Next 3Y41.55%
EPS Next 5YN/A
Revenue Next Year53.23%
Revenue Next 2Y34.18%
Revenue Next 3Y24.28%
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 73.02 indicates a quite expensive valuation of ROAD.
Based on the Price/Earnings ratio, ROAD is valued a bit more expensive than 62.26% of the companies in the same industry.
ROAD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.90.
A Price/Forward Earnings ratio of 40.13 indicates a quite expensive valuation of ROAD.
The rest of the industry has a similar Price/Forward Earnings ratio as ROAD.
The average S&P500 Price/Forward Earnings ratio is at 23.36. ROAD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.02 | ||
| Fwd PE | 40.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROAD.
ROAD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.37 | ||
| EV/EBITDA | 26.23 |
4.3 Compensation for Growth
The 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 41.55% in the coming years.
PEG (NY)1.01
PEG (5Y)7.51
EPS Next 2Y52.64%
EPS Next 3Y41.55%
5. Dividend
5.1 Amount
No dividends for ROAD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ROAD (10/7/2025, 10:27:23 AM)
123.41
-0.72 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners101.29%
Inst Owner Change0.01%
Ins Owners1.64%
Ins Owner Change-9.25%
Market Cap6.92B
Analysts87.27
Price Target123.76 (0.28%)
Short Float %6.41%
Short Ratio5.69
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)0.97%
PT rev (3m)10.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)1.6%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.66%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.02 | ||
| Fwd PE | 40.13 | ||
| P/S | 2.82 | ||
| P/FCF | 45.37 | ||
| P/OCF | 25.13 | ||
| P/B | 8.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.23 |
EPS(TTM)1.69
EY1.37%
EPS(NY)3.08
Fwd EY2.49%
FCF(TTM)2.72
FCFY2.2%
OCF(TTM)4.91
OCFY3.98%
SpS43.69
BVpS15.21
TBVpS-0.08
PEG (NY)1.01
PEG (5Y)7.51
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%
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 Turnover0.84
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 | 3.34 |
F-Score5
WACC11.37%
ROIC/WACC0.51
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 3Y41.55%
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 2Y34.18%
Revenue Next 3Y24.28%
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%