CONSTRUCTION PARTNERS INC-A (ROAD) Fundamental Analysis & Valuation
NASDAQ:ROAD • US21044C1071
Current stock price
126.53 USD
+2.87 (+2.32%)
At close:
125.99 USD
-0.54 (-0.43%)
After Hours:
This ROAD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ROAD Profitability Analysis
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
- The Return On Assets of ROAD (3.63%) is comparable to the rest of the industry.
- With a Return On Equity value of 12.59%, ROAD perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
- The Return On Invested Capital of ROAD (7.06%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for ROAD is significantly below the industry average of 14.27%.
- The 3 year average ROIC (6.46%) for ROAD is below the current ROIC(7.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 12.59% | ||
| ROIC | 7.06% |
ROA(3y)3.88%
ROA(5y)3.22%
ROE(3y)10.89%
ROE(5y)8.46%
ROIC(3y)6.46%
ROIC(5y)5.12%
1.3 Margins
- With a Profit Margin value of 3.99%, ROAD perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
- ROAD's Profit Margin has declined in the last couple of years.
- The Operating Margin of ROAD (8.74%) is better than 63.64% of its industry peers.
- In the last couple of years the Operating Margin of ROAD has grown nicely.
- Looking at the Gross Margin, with a value of 15.82%, ROAD is in line with its industry, outperforming 47.27% of the companies in the same 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 | 8.74% | ||
| PM (TTM) | 3.99% | ||
| GM | 15.82% |
OM growth 3Y50.59%
OM growth 5Y4.56%
PM growth 3Y30.09%
PM growth 5Y-6.74%
GM growth 3Y13.42%
GM growth 5Y0.08%
2. ROAD Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROAD is destroying value.
- Compared to 1 year ago, ROAD has more shares outstanding
- 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
- ROAD has an Altman-Z score of 3.26. This indicates that ROAD is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.26, ROAD is in line with its industry, outperforming 47.27% of the companies in the same industry.
- ROAD has a debt to FCF ratio of 9.35. This is a negative value and a sign of low solvency as ROAD would need 9.35 years to pay back of all of its debts.
- The Debt to FCF ratio of ROAD (9.35) is comparable to the rest of the industry.
- ROAD has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
- ROAD has a worse Debt to Equity ratio (1.76) than 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 9.35 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.66
WACC10.7%
2.3 Liquidity
- ROAD has a Current Ratio of 1.59. 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 1.59. This is in the better half of the industry: ROAD outperforms 72.73% of its industry peers.
- ROAD has a Quick Ratio of 1.26. This is a normal value and indicates that ROAD is financially healthy and should not expect problems in meeting its short term obligations.
- ROAD's Quick ratio of 1.26 is in line compared to the rest of the industry. ROAD outperforms 49.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.26 |
3. ROAD Growth Analysis
3.1 Past
- ROAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.64%, which is quite impressive.
- ROAD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.93% yearly.
- ROAD shows a strong growth in Revenue. In the last year, the Revenue has grown by 53.86%.
- ROAD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.05% yearly.
EPS 1Y (TTM)76.64%
EPS 3Y74.8%
EPS 5Y22.93%
EPS Q2Q%95.83%
Revenue 1Y (TTM)53.86%
Revenue growth 3Y29.28%
Revenue growth 5Y29.05%
Sales Q2Q%44.14%
3.2 Future
- Based on estimates for the next years, ROAD will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.96% on average per year.
- Based on estimates for the next years, ROAD will show a quite strong growth in Revenue. The Revenue will grow by 13.63% on average per year.
EPS Next Y30.99%
EPS Next 2Y30.26%
EPS Next 3Y19.89%
EPS Next 5Y16.96%
Revenue Next Year25.45%
Revenue Next 2Y17.63%
Revenue Next 3Y14.54%
Revenue Next 5Y13.63%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. ROAD Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 52.29, which means the current valuation is very expensive for ROAD.
- Compared to the rest of the industry, the Price/Earnings ratio of ROAD is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of ROAD to the average of the S&P500 Index (26.51), we can say ROAD is valued expensively.
- Based on the Price/Forward Earnings ratio of 34.05, the valuation of ROAD can be described as expensive.
- ROAD's Price/Forward Earnings ratio is in line with the industry average.
- ROAD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.29 | ||
| Fwd PE | 34.05 |
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.
- 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 | 38.35 | ||
| EV/EBITDA | 20.45 |
4.3 Compensation for Growth
- ROAD's 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 19.89% in the coming years.
PEG (NY)1.69
PEG (5Y)2.28
EPS Next 2Y30.26%
EPS Next 3Y19.89%
5. ROAD Dividend Analysis
5.1 Amount
- ROAD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ROAD Fundamentals: All Metrics, Ratios and Statistics
126.53
+2.87 (+2.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Industry Strength91.93
Industry Growth93.17
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-08 2026-05-08/bmo
Inst Owners99.88%
Inst Owner Change-0.28%
Ins Owners1.35%
Ins Owner Change0.5%
Market Cap7.15B
Revenue(TTM)3.06B
Net Income(TTM)122.04M
Analysts85
Price Target139.4 (10.17%)
Short Float %6.15%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)24.18%
Min EPS beat(2)-4.51%
Max EPS beat(2)52.87%
EPS beat(4)2
Avg EPS beat(4)58.53%
Min EPS beat(4)-4.51%
Max EPS beat(4)189.13%
EPS beat(8)5
Avg EPS beat(8)44.37%
EPS beat(12)9
Avg EPS beat(12)39.25%
EPS beat(16)11
Avg EPS beat(16)20.18%
Revenue beat(2)1
Avg Revenue beat(2)1.98%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)5.51%
Revenue beat(4)2
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)5.51%
Revenue beat(8)4
Avg Revenue beat(8)0.79%
Revenue beat(12)6
Avg Revenue beat(12)1.17%
Revenue beat(16)10
Avg Revenue beat(16)3.35%
PT rev (1m)0.49%
PT rev (3m)6.77%
EPS NQ rev (1m)15.99%
EPS NQ rev (3m)-125.93%
EPS NY rev (1m)-3.85%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.29 | ||
| Fwd PE | 34.05 | ||
| P/S | 2.34 | ||
| P/FCF | 38.35 | ||
| P/OCF | 21.48 | ||
| P/B | 7.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.45 |
EPS(TTM)2.42
EY1.91%
EPS(NY)3.72
Fwd EY2.94%
FCF(TTM)3.3
FCFY2.61%
OCF(TTM)5.89
OCFY4.65%
SpS54.14
BVpS17.15
TBVpS-3.3
PEG (NY)1.69
PEG (5Y)2.28
Graham Number30.5557 (-75.85%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 12.59% | ||
| ROCE | 9.38% | ||
| ROIC | 7.06% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 12.66% | ||
| OM | 8.74% | ||
| PM (TTM) | 3.99% | ||
| GM | 15.82% | ||
| FCFM | 6.09% |
ROA(3y)3.88%
ROA(5y)3.22%
ROE(3y)10.89%
ROE(5y)8.46%
ROIC(3y)6.46%
ROIC(5y)5.12%
ROICexc(3y)6.56%
ROICexc(5y)5.35%
ROICexgc(3y)9.12%
ROICexgc(5y)7.18%
ROCE(3y)8.59%
ROCE(5y)6.81%
ROICexgc growth 3Y45.91%
ROICexgc growth 5Y-4.23%
ROICexc growth 3Y32.3%
ROICexc growth 5Y-10.35%
OM growth 3Y50.59%
OM growth 5Y4.56%
PM growth 3Y30.09%
PM growth 5Y-6.74%
GM growth 3Y13.42%
GM growth 5Y0.08%
F-Score8
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 9.35 | ||
| Debt/EBITDA | 3.97 | ||
| Cap/Depr | 90.2% | ||
| Cap/Sales | 4.78% | ||
| Interest Coverage | 2.91 | ||
| Cash Conversion | 77.45% | ||
| Profit Quality | 152.8% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.26 |
F-Score8
WACC10.7%
ROIC/WACC0.66
Cap/Depr(3y)103.77%
Cap/Depr(5y)105.84%
Cap/Sales(3y)5.33%
Cap/Sales(5y)5.49%
Profit Quality(3y)149.22%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)76.64%
EPS 3Y74.8%
EPS 5Y22.93%
EPS Q2Q%95.83%
EPS Next Y30.99%
EPS Next 2Y30.26%
EPS Next 3Y19.89%
EPS Next 5Y16.96%
Revenue 1Y (TTM)53.86%
Revenue growth 3Y29.28%
Revenue growth 5Y29.05%
Sales Q2Q%44.14%
Revenue Next Year25.45%
Revenue Next 2Y17.63%
Revenue Next 3Y14.54%
Revenue Next 5Y13.63%
EBIT growth 1Y116.7%
EBIT growth 3Y94.68%
EBIT growth 5Y34.94%
EBIT Next Year134.24%
EBIT Next 3Y39.41%
EBIT Next 5Y26.02%
FCF growth 1Y94.76%
FCF growth 3YN/A
FCF growth 5Y23.87%
OCF growth 1Y76.46%
OCF growth 3Y160.39%
OCF growth 5Y22.59%
CONSTRUCTION PARTNERS INC-A / ROAD Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for CONSTRUCTION PARTNERS INC-A?
ChartMill assigns a fundamental rating of 4 / 10 to ROAD.
What is the valuation status for ROAD stock?
ChartMill assigns a valuation rating of 2 / 10 to CONSTRUCTION PARTNERS INC-A (ROAD). This can be considered as Overvalued.
How profitable is CONSTRUCTION PARTNERS INC-A (ROAD) stock?
CONSTRUCTION PARTNERS INC-A (ROAD) has a profitability rating of 5 / 10.
What is the financial health of CONSTRUCTION PARTNERS INC-A (ROAD) stock?
The financial health rating of CONSTRUCTION PARTNERS INC-A (ROAD) is 3 / 10.