CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
NASDAQ:ROAD - Nasdaq - US21044C1071 - Common Stock - Currency: USD
ROAD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 52 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 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.
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 comparable to the rest of the industry.
ROAD has a Return On Equity of 7.57%. This is comparable to the rest of the industry: ROAD outperforms 57.69% of its industry peers.
ROAD has a Return On Invested Capital of 4.88%. This is comparable to the rest of the industry: ROAD outperforms 51.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROAD is significantly below the industry average of 16.60%.
| 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
Looking at the Profit Margin, with a value of 2.79%, ROAD is in line with its industry, outperforming 53.85% of the companies in the same industry.
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 63.46% of the companies in the same industry.
ROAD's Operating Margin has declined in the last couple of years.
ROAD has a Gross Margin (14.41%) 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 | 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
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.
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 3.04 indicates that ROAD is not in any danger for bankruptcy at the moment.
ROAD has a Altman-Z score (3.04) 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 50.00% 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.
The Debt to Equity ratio of ROAD (1.63) is worse than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.79 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.49
WACC9.99%
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.
ROAD has a Current ratio of 1.42. This is in the better half of the industry: ROAD outperforms 69.23% of its industry peers.
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 63.46% 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.
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 31.49%.
The Revenue has been growing by 18.42% on average over the past years. This is quite good.
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
ROAD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.51% yearly.
The Revenue is expected to grow by 23.60% on average over the next years. This is a very strong growth
EPS Next Y76.95%
EPS Next 2Y46.73%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue Next Year52.2%
Revenue Next 2Y30.82%
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
ROAD is valuated quite expensively with a Price/Earnings ratio of 70.52.
61.54% of the companies in the same industry are cheaper than ROAD, based on the Price/Earnings ratio.
ROAD is valuated expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 36.48, ROAD can be considered very expensive at the moment.
ROAD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, ROAD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.52 | ||
| Fwd PE | 36.48 |
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 | 46.1 | ||
| EV/EBITDA | 27.24 |
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.
A more expensive valuation may be justified as ROAD's earnings are expected to grow with 46.51% in the coming years.
PEG (NY)0.92
PEG (5Y)7.25
EPS Next 2Y46.73%
EPS Next 3Y46.51%
5. Dividend
5.1 Amount
ROAD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
103.67
-1.64 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change4.43%
Ins Owners1.72%
Ins Owner Change-0.69%
Market Cap5.81B
Analysts83.64
Price Target110.47 (6.56%)
Short Float %8.39%
Short Ratio7.66
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)4.17%
PT rev (3m)4.13%
EPS NQ rev (1m)1.48%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)10.49%
EPS NY rev (3m)10.49%
Revenue NQ rev (1m)4.4%
Revenue NQ rev (3m)4.4%
Revenue NY rev (1m)2.76%
Revenue NY rev (3m)2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.52 | ||
| Fwd PE | 36.48 | ||
| P/S | 2.65 | ||
| P/FCF | 46.1 | ||
| P/OCF | 25.7 | ||
| P/B | 7.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.24 |
EPS(TTM)1.47
EY1.42%
EPS(NY)2.84
Fwd EY2.74%
FCF(TTM)2.25
FCFY2.17%
OCF(TTM)4.03
OCFY3.89%
SpS39.07
BVpS14.42
TBVpS-0.3
PEG (NY)0.92
PEG (5Y)7.25
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 | 3.04 |
F-Score5
WACC9.99%
ROIC/WACC0.49
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 2Y46.73%
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 Year52.2%
Revenue Next 2Y30.82%
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%