CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
NASDAQ:ROAD - Nasdaq - US21044C1071 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ROAD. ROAD was compared to 51 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 expensively, but it does show have an excellent growth rating.
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.
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.
ROAD has a Return On Equity (7.60%) which is comparable to the rest of the industry.
ROAD has a Return On Invested Capital (4.87%) which 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 16.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 7.6% | ||
| ROIC | 4.87% |
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 2.80%, ROAD perfoms like the industry average, outperforming 54.90% 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 60.78% of the companies in the same industry.
In the last couple of years the Operating Margin of ROAD has declined.
ROAD has a Gross Margin of 14.41%. This is comparable to the rest of the industry: ROAD outperforms 45.10% 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 | 6.66% | ||
| PM (TTM) | 2.8% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROAD is destroying value.
The number of shares outstanding for ROAD has been increased compared to 1 year ago.
ROAD has more shares outstanding than it did 5 years ago.
ROAD has a worse debt/assets ratio than last year.
2.2 Solvency
ROAD has an Altman-Z score of 2.97. This is not the best score and indicates that ROAD is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ROAD (2.97) is comparable to the rest of the industry.
The Debt to FCF ratio of ROAD is 10.78, which is on the high side as it means it would take ROAD, 10.78 years of fcf income to pay off all of its debts.
ROAD has a Debt to FCF ratio (10.78) 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 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.78 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.48
WACC10.25%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ROAD should not have too much problems paying its short term obligations.
ROAD's Current ratio of 1.42 is fine compared to the rest of the industry. ROAD outperforms 64.71% of its industry peers.
A Quick Ratio of 1.13 indicates that ROAD should not have too much problems paying its short term obligations.
The Quick ratio of ROAD (1.13) is worse than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.64% over the past year.
Measured over the past years, ROAD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.72% on average per year.
Looking at the last year, ROAD shows a very strong growth in Revenue. 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.
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 2Y46.73%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue Next Year52.2%
Revenue Next 2Y30.32%
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
The Price/Earnings ratio is 68.80, which means the current valuation is very expensive for ROAD.
Based on the Price/Earnings ratio, ROAD is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of ROAD to the average of the S&P500 Index (26.68), we can say ROAD is valued expensively.
A Price/Forward Earnings ratio of 35.59 indicates a quite expensive valuation of ROAD.
Based on the Price/Forward Earnings ratio, ROAD is valued a bit more expensive than 62.75% of the companies in the same industry.
ROAD is valuated expensively when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.8 | ||
| Fwd PE | 35.59 |
4.2 Price Multiples
ROAD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ROAD is more expensive than 62.75% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROAD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.84 | ||
| EV/EBITDA | 26.28 |
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)0.89
PEG (5Y)7.08
EPS Next 2Y46.73%
EPS Next 3Y46.51%
5. Dividend
5.1 Amount
No dividends for ROAD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.14
+2.1 (+2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners98.6%
Inst Owner Change4.38%
Ins Owners1.6%
Ins Owner Change-3.03%
Market Cap5.66B
Analysts83.64
Price Target106.05 (4.85%)
Short Float %8.94%
Short Ratio8.01
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)-0.03%
PT rev (3m)0.29%
EPS NQ rev (1m)2.04%
EPS NQ rev (3m)3.57%
EPS NY rev (1m)10.49%
EPS NY rev (3m)12.7%
Revenue NQ rev (1m)4.07%
Revenue NQ rev (3m)4.07%
Revenue NY rev (1m)2.76%
Revenue NY rev (3m)8.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.8 | ||
| Fwd PE | 35.59 | ||
| P/S | 2.58 | ||
| P/FCF | 44.84 | ||
| P/OCF | 24.95 | ||
| P/B | 7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.28 |
EPS(TTM)1.47
EY1.45%
EPS(NY)2.84
Fwd EY2.81%
FCF(TTM)2.26
FCFY2.23%
OCF(TTM)4.05
OCFY4.01%
SpS39.13
BVpS14.44
TBVpS-0.31
PEG (NY)0.89
PEG (5Y)7.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 7.6% | ||
| ROCE | 6.51% | ||
| ROIC | 4.87% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 8.32% | ||
| OM | 6.66% | ||
| PM (TTM) | 2.8% | ||
| 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)7.67%
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 | 10.78 | ||
| Debt/EBITDA | 5.01 | ||
| Cap/Depr | 85.72% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 3.04 | ||
| Cash Conversion | 86.18% | ||
| Profit Quality | 205.59% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.97 |
F-Score5
WACC10.25%
ROIC/WACC0.48
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 2Y30.32%
Revenue Next 3Y23.6%
Revenue Next 5YN/A
EBIT growth 1Y57.99%
EBIT growth 3Y54.42%
EBIT growth 5Y14.42%
EBIT Next Year244.63%
EBIT Next 3Y65.37%
EBIT Next 5YN/A
FCF growth 1Y453.47%
FCF growth 3YN/A
FCF growth 5Y56.76%
OCF growth 1Y285.1%
OCF growth 3Y62.75%
OCF growth 5Y30.47%