CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
USA - NASDAQ:ROAD - US21044C1071 - Common Stock
115.01 USD
-0.58 (-0.5%)
114.44 USD
-0.57 (-0.5%)
ROAD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 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 expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year ROAD was profitable.
ROAD had a positive operating cash flow in the past year.
In the past 5 years ROAD has always been profitable.
Each year in the past 5 years ROAD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ROAD (2.55%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.73%, ROAD is in line with its industry, outperforming 52.73% of the companies in the same industry.
With a Return On Invested Capital value of 5.74%, ROAD perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
ROAD had an Average Return On Invested Capital over the past 3 years of 5.11%. This is significantly below the industry average of 17.10%.
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
The Profit Margin of ROAD (3.04%) is comparable to the rest of the 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 63.64% of its industry peers.
In the last couple of years the Operating Margin of ROAD has declined.
ROAD has a Gross Margin (14.85%) which is comparable to the rest of the industry.
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.
The number of shares outstanding for ROAD has been increased compared to 1 year ago.
Compared to 5 years ago, ROAD has more shares outstanding
The debt/assets ratio for ROAD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.19 indicates that ROAD is not in any danger for bankruptcy at the moment.
ROAD has a Altman-Z score (3.19) which is in line with its industry peers.
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's Debt to FCF ratio of 9.38 is in line compared to the rest of the industry. ROAD outperforms 50.91% of its industry peers.
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 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 9.38 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.52
WACC11.09%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ROAD should not have too much problems paying its short term obligations.
ROAD has a better Current ratio (1.47) than 70.91% of its industry peers.
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
The Earnings Per Share has grown by an impressive 25.19% over the past year.
ROAD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.72% yearly.
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
ROAD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.55% yearly.
The Revenue is expected to grow by 24.28% on average over the next years. This is a very strong growth
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.
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 68.05, which means the current valuation is very expensive for ROAD.
The rest of the industry has a similar Price/Earnings ratio as ROAD.
The average S&P500 Price/Earnings ratio is at 27.40. ROAD is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 37.40, ROAD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROAD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ROAD to the average of the S&P500 Index (22.94), we can say ROAD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.05 | ||
| Fwd PE | 37.4 |
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 | 42.28 | ||
| EV/EBITDA | 24.61 |
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.
A more expensive valuation may be justified as ROAD's earnings are expected to grow with 41.55% in the coming years.
PEG (NY)0.94
PEG (5Y)7
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 |
115.01
-0.58 (-0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners101.29%
Inst Owner Change-0.19%
Ins Owners1.64%
Ins Owner Change-9.25%
Market Cap6.45B
Analysts87.27
Price Target123.76 (7.61%)
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%
PT rev (3m)7.85%
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%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.05 | ||
| Fwd PE | 37.4 | ||
| P/S | 2.63 | ||
| P/FCF | 42.28 | ||
| P/OCF | 23.42 | ||
| P/B | 7.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.61 |
EPS(TTM)1.69
EY1.47%
EPS(NY)3.08
Fwd EY2.67%
FCF(TTM)2.72
FCFY2.37%
OCF(TTM)4.91
OCFY4.27%
SpS43.69
BVpS15.21
TBVpS-0.08
PEG (NY)0.94
PEG (5Y)7
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 | 3.19 |
F-Score5
WACC11.09%
ROIC/WACC0.52
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%