CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
NASDAQ:ROAD - Nasdaq - US21044C1071 - Common Stock - Currency: USD
ROAD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 shows excellent growth, but is valued quite expensive already.
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.
Each year in the past 5 years ROAD had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.22%, ROAD perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
With a Return On Equity value of 7.57%, ROAD perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
ROAD has a Return On Invested Capital of 4.88%. This is comparable to the rest of the industry: ROAD outperforms 51.92% of its industry peers.
ROAD had an Average Return On Invested Capital over the past 3 years of 5.11%. This is significantly below the industry average of 16.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 7.57% | ||
| ROIC | 4.88% |
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 (2.79%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ROAD has declined.
ROAD has a better Operating Margin (6.66%) than 63.46% of its industry peers.
ROAD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 14.41%, ROAD is in line with its industry, outperforming 46.15% 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 | 6.66% | ||
| PM (TTM) | 2.79% | ||
| GM | 14.41% |
OM growth 3Y22.42%
OM growth 5Y-3.42%
PM growth 3Y19.48%
PM growth 5Y-7.22%
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.
The number of shares outstanding for ROAD has been increased compared to 5 years ago.
Compared to 1 year ago, ROAD has a worse debt to assets ratio.
2.2 Solvency
ROAD has an Altman-Z score of 3.04. This indicates that ROAD is financially healthy and has little risk of bankruptcy at the moment.
ROAD has a Altman-Z score (3.04) which is comparable to the rest of the industry.
The Debt to FCF ratio of ROAD is 10.79, which is on the high side as it means it would take ROAD, 10.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.79, ROAD is in line with its industry, outperforming 51.92% 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 has a worse Debt to Equity ratio (1.63) than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.79 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.48
WACC10.18%
2.3 Liquidity
ROAD has a Current Ratio of 1.42. 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 Current ratio of 1.42 is fine compared to the rest of the industry. ROAD outperforms 69.23% of its industry peers.
A Quick Ratio of 1.13 indicates that ROAD should not have too much problems paying its short term obligations.
ROAD's Quick ratio of 1.13 is on the low side compared to the rest of the industry. ROAD is outperformed by 61.54% 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.
ROAD shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.49%.
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)25.64%
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 2Y47.22%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue Next Year52.47%
Revenue Next 2Y31.04%
Revenue Next 3Y23.6%
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
Based on the Price/Earnings ratio of 71.59, the valuation of ROAD can be described as expensive.
63.46% of the companies in the same industry are cheaper than ROAD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ROAD to the average of the S&P500 Index (27.30), we can say ROAD is valued expensively.
Based on the Price/Forward Earnings ratio of 36.78, the valuation of ROAD can be described as expensive.
ROAD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ROAD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.59 | ||
| Fwd PE | 36.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROAD.
ROAD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.79 | ||
| EV/EBITDA | 27.23 |
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)0.93
PEG (5Y)7.36
EPS Next 2Y47.22%
EPS Next 3Y46.51%
5. Dividend
5.1 Amount
ROAD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
105.23
-0.03 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change0%
Ins Owners1.72%
Ins Owner Change-1.84%
Market Cap5.90B
Analysts83.64
Price Target112.17 (6.6%)
Short Float %8.25%
Short Ratio7.29
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)5.77%
PT rev (3m)5.74%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)0%
EPS NY rev (3m)10.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.4%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.59 | ||
| Fwd PE | 36.78 | ||
| P/S | 2.69 | ||
| P/FCF | 46.79 | ||
| P/OCF | 26.09 | ||
| P/B | 7.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.23 |
EPS(TTM)1.47
EY1.4%
EPS(NY)2.86
Fwd EY2.72%
FCF(TTM)2.25
FCFY2.14%
OCF(TTM)4.03
OCFY3.83%
SpS39.07
BVpS14.42
TBVpS-0.3
PEG (NY)0.93
PEG (5Y)7.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 7.57% | ||
| ROCE | 6.51% | ||
| ROIC | 4.88% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 8.32% | ||
| OM | 6.66% | ||
| PM (TTM) | 2.79% | ||
| 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)7.68%
ROCE(3y)6.82%
ROCE(5y)7.18%
ROICexcg growth 3Y21.56%
ROICexcg growth 5Y-9.56%
ROICexc growth 3Y19.08%
ROICexc growth 5Y-11.47%
OM growth 3Y22.42%
OM growth 5Y-3.42%
PM growth 3Y19.48%
PM growth 5Y-7.22%
GM growth 3Y2.46%
GM growth 5Y-1.23%
F-Score5
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.79 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 85.47% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 86% | ||
| Profit Quality | 205.98% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.04 |
F-Score5
WACC10.18%
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 2Y47.22%
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 Year52.47%
Revenue Next 2Y31.04%
Revenue Next 3Y23.6%
Revenue Next 5YN/A
EBIT growth 1Y57.98%
EBIT growth 3Y54.31%
EBIT growth 5Y14.37%
EBIT Next Year276.92%
EBIT Next 3Y65.37%
EBIT Next 5YN/A
FCF growth 1Y452.94%
FCF growth 3YN/A
FCF growth 5Y56.72%
OCF growth 1Y283.7%
OCF growth 3Y62.73%
OCF growth 5Y30.46%