CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
USA - NASDAQ:ROAD - US21044C1071 - Common Stock
126.32 USD
+1.12 (+0.89%)
126.32 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ROAD. ROAD was compared to 52 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.
ROAD had a positive operating cash flow in the past year.
Each year in the past 5 years ROAD has 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 (2.55%) is comparable to the rest of the industry.
The Return On Equity of ROAD (8.73%) is comparable to the rest of the industry.
ROAD has a Return On Invested Capital (5.74%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROAD is significantly below the industry average of 17.22%.
The last Return On Invested Capital (5.74%) for ROAD is above the 3 year average (5.11%), which is a sign of increasing profitability.
| 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of ROAD has declined.
With a decent Operating Margin value of 7.43%, ROAD is doing good in the industry, outperforming 63.46% of the companies in the same industry.
In the last couple of years the Operating Margin of ROAD has declined.
With a Gross Margin value of 14.85%, ROAD perfoms like the industry average, outperforming 44.23% of the companies in the same industry.
ROAD's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, ROAD has more shares outstanding
ROAD has more shares outstanding than it did 5 years ago.
ROAD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.37 indicates that ROAD is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.37, ROAD perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 9.38, ROAD is in line with its industry, outperforming 46.15% 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.
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 | 3.37 |
ROIC/WACC0.58
WACC9.86%
2.3 Liquidity
ROAD has a Current Ratio of 1.47. This is a normal value and indicates that ROAD is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.47, ROAD is doing good in 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 comparable to the rest of the industry.
| 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.
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.
ROAD shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.18%.
The Revenue has been growing by 18.42% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 24.28% on average over the next years. This is a very strong growth
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 74.75, ROAD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ROAD indicates a slightly more expensive valuation: ROAD is more expensive than 65.38% of the companies listed in the same industry.
ROAD is valuated expensively when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
ROAD is valuated quite expensively with a Price/Forward Earnings ratio of 41.67.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROAD is on the same level as its industry peers.
ROAD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.75 | ||
| Fwd PE | 41.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROAD indicates a slightly more expensive valuation: ROAD is more expensive than 61.54% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROAD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.44 | ||
| EV/EBITDA | 26.62 |
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)1.08
PEG (5Y)7.69
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 |
126.32
+1.12 (+0.89%)
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 Cap7.09B
Analysts87.27
Price Target123.76 (-2.03%)
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 | 74.75 | ||
| Fwd PE | 41.67 | ||
| P/S | 2.89 | ||
| P/FCF | 46.44 | ||
| P/OCF | 25.73 | ||
| P/B | 8.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.62 |
EPS(TTM)1.69
EY1.34%
EPS(NY)3.03
Fwd EY2.4%
FCF(TTM)2.72
FCFY2.15%
OCF(TTM)4.91
OCFY3.89%
SpS43.69
BVpS15.21
TBVpS-0.08
PEG (NY)1.08
PEG (5Y)7.69
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 | 3.37 |
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%