CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
USA - NASDAQ:ROAD - US21044C1071 - Common Stock
125.2 USD
+0.29 (+0.23%)
125.2 USD
0 (0%)
Overall ROAD gets a fundamental rating of 5 out of 10. We evaluated ROAD against 52 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
ROAD had positive earnings in the past year.
In the past year ROAD had a positive cash flow from operations.
ROAD had positive earnings in each of the past 5 years.
In the past 5 years ROAD always reported a positive cash flow from operatings.
1.2 Ratios
ROAD has a Return On Assets of 2.55%. This is comparable to the rest of the industry: ROAD outperforms 50.00% of its industry peers.
With a Return On Equity value of 8.73%, ROAD perfoms like the industry average, outperforming 51.92% of the companies in the same industry.
ROAD has a Return On Invested Capital of 5.74%. This is comparable to the rest of the industry: ROAD outperforms 48.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROAD is significantly below the industry average of 17.22%.
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
ROAD has a Profit Margin (3.04%) which is in line with its industry peers.
ROAD's Profit Margin has declined in the last couple of years.
ROAD has a better Operating Margin (7.43%) than 63.46% 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.
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
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
ROAD has an Altman-Z score of 3.35. This indicates that ROAD is financially healthy and has little risk of bankruptcy at the moment.
ROAD has a Altman-Z score (3.35) which is in line with its industry peers.
ROAD has a debt to FCF ratio of 9.38. This is a negative value and a sign of low solvency as ROAD would need 9.38 years to pay back of all of its debts.
ROAD has a Debt to FCF ratio of 9.38. This is comparable to the rest of the industry: ROAD outperforms 46.15% of 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's Debt to Equity ratio of 1.63 is on the low side compared to the rest of the industry. ROAD is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 9.38 | ||
| Altman-Z | 3.35 |
ROIC/WACC0.58
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ROAD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.47, ROAD is in the better half of the industry, outperforming 69.23% 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 (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.2 |
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.
ROAD shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.18%.
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)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.
ROAD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.28% yearly.
EPS Next Y69.42%
EPS Next 2Y51.54%
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.
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 74.08, which means the current valuation is very expensive for ROAD.
Compared to the rest of the industry, the Price/Earnings ratio of ROAD indicates a slightly more expensive valuation: ROAD is more expensive than 63.46% of the companies listed in the same industry.
ROAD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 41.31, 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 22.73, ROAD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.08 | ||
| Fwd PE | 41.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROAD.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROAD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.02 | ||
| EV/EBITDA | 26.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ROAD's earnings are expected to grow with 41.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)7.62
EPS Next 2Y51.54%
EPS Next 3Y41.55%
5. Dividend
5.1 Amount
ROAD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
125.2
+0.29 (+0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.4%
Inst Owner Change-0.8%
Ins Owners1.72%
Ins Owner Change-4.68%
Market Cap7.02B
Analysts87.27
Price Target123.76 (-1.15%)
Short Float %7.49%
Short Ratio6.09
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)6.9%
PT rev (3m)12.03%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)-4.26%
EPS NY rev (3m)-4.26%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)4.66%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.08 | ||
| Fwd PE | 41.31 | ||
| P/S | 2.87 | ||
| P/FCF | 46.02 | ||
| P/OCF | 25.5 | ||
| P/B | 8.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.42 |
EPS(TTM)1.69
EY1.35%
EPS(NY)3.03
Fwd EY2.42%
FCF(TTM)2.72
FCFY2.17%
OCF(TTM)4.91
OCFY3.92%
SpS43.69
BVpS15.21
TBVpS-0.08
PEG (NY)1.07
PEG (5Y)7.62
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 | 3.35 |
F-Score5
WACC9.86%
ROIC/WACC0.58
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 Y69.42%
EPS Next 2Y51.54%
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 Year271.7%
EBIT Next 3Y65.37%
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%