CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
NASDAQ:ROAD - Nasdaq - US21044C1071 - Common Stock - Currency: USD
Overall ROAD gets a fundamental rating of 5 out of 10. We evaluated ROAD against 49 industry peers in the Construction & Engineering industry. ROAD has only an average score on both its financial health and profitability. ROAD shows excellent growth, but is valued quite expensive already.
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.
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
ROAD has a better Return On Assets (4.47%) than 67.39% of its industry peers.
The Return On Equity of ROAD (12.02%) is better than 60.87% of its industry peers.
ROAD has a better Return On Invested Capital (6.88%) than 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 12.02% | ||
| ROIC | 6.88% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.78%, ROAD is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
ROAD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.85%, ROAD is in line with its industry, outperforming 56.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ROAD has declined.
ROAD's Gross Margin of 14.16% is in line compared to the rest of the industry. ROAD outperforms 41.30% of its industry peers.
ROAD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | 3.78% | ||
| GM | 14.16% |
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.
There is no outstanding debt for ROAD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
ROAD has an Altman-Z score of 4.52. This indicates that ROAD is financially healthy and has little risk of bankruptcy at the moment.
ROAD has a better Altman-Z score (4.52) than 73.91% of its industry peers.
ROAD has a debt to FCF ratio of 4.24. This is a neutral value as ROAD would need 4.24 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.24, ROAD perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
ROAD has a Debt/Equity ratio of 0.85. This is a neutral value indicating ROAD is somewhat dependend on debt financing.
The Debt to Equity ratio of ROAD (0.85) is worse than 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 4.52 |
ROIC/WACC0.67
WACC10.21%
2.3 Liquidity
ROAD has a Current Ratio of 1.54. 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 1.54. This is in the better half of the industry: ROAD outperforms 60.87% of its industry peers.
A Quick Ratio of 1.26 indicates that ROAD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.26, ROAD perfoms like the industry average, outperforming 41.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
ROAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.85%, which is quite impressive.
The Earnings Per Share has been growing by 9.72% on average over the past years. This is quite good.
Looking at the last year, ROAD shows a quite strong growth in Revenue. The Revenue has grown by 16.65% in the last year.
The Revenue has been growing by 18.42% on average over the past years. This is quite good.
EPS 1Y (TTM)26.85%
EPS 3Y43.15%
EPS 5Y9.72%
EPS Q2Q%26.32%
Revenue 1Y (TTM)16.65%
Revenue growth 3Y26.05%
Revenue growth 5Y18.42%
Sales Q2Q%41.63%
3.2 Future
The Earnings Per Share is expected to grow by 46.51% on average over the next years. This is a very strong growth
Based on estimates for the next years, ROAD will show a very strong growth in Revenue. The Revenue will grow by 21.05% on average per year.
EPS Next Y57.02%
EPS Next 2Y44.96%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue Next Year39.84%
Revenue Next 2Y24.56%
Revenue Next 3Y21.05%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 53.36 indicates a quite expensive valuation of ROAD.
The rest of the industry has a similar Price/Earnings ratio as ROAD.
The average S&P500 Price/Earnings ratio is at 29.63. ROAD is valued rather expensively when compared to this.
ROAD is valuated quite expensively with a Price/Forward Earnings ratio of 26.36.
Based on the Price/Forward Earnings ratio, ROAD is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ROAD to the average of the S&P500 Index (22.68), we can say ROAD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.36 | ||
| Fwd PE | 26.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROAD is valued a bit more expensive than the industry average as 63.04% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROAD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.76 | ||
| EV/EBITDA | 23.75 |
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.
ROAD's earnings are expected to grow with 46.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)5.49
EPS Next 2Y44.96%
EPS Next 3Y46.51%
5. Dividend
5.1 Amount
ROAD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.11
-3.8 (-4.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners98.6%
Inst Owner Change7.21%
Ins Owners1.6%
Ins Owner Change-4.1%
Market Cap4.09B
Analysts83.64
Price Target106.08 (45.1%)
Short Float %7.12%
Short Ratio5.92
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)1.73%
Min EPS beat(2)-3.48%
Max EPS beat(2)6.95%
EPS beat(4)3
Avg EPS beat(4)24.51%
Min EPS beat(4)-3.48%
Max EPS beat(4)51.28%
EPS beat(8)6
Avg EPS beat(8)19.58%
EPS beat(12)9
Avg EPS beat(12)4.25%
EPS beat(16)10
Avg EPS beat(16)-11.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)0.81%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)0.81%
Revenue beat(8)4
Avg Revenue beat(8)1.44%
Revenue beat(12)8
Avg Revenue beat(12)5.23%
Revenue beat(16)8
Avg Revenue beat(16)1.11%
PT rev (1m)-1.27%
PT rev (3m)49.16%
EPS NQ rev (1m)-18.27%
EPS NQ rev (3m)-41.58%
EPS NY rev (1m)4.92%
EPS NY rev (3m)6.85%
Revenue NQ rev (1m)1.72%
Revenue NQ rev (3m)17.69%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.36 | ||
| Fwd PE | 26.36 | ||
| P/S | 2.24 | ||
| P/FCF | 33.76 | ||
| P/OCF | 19.56 | ||
| P/B | 7.13 | ||
| P/tB | 12.72 | ||
| EV/EBITDA | 23.75 |
EPS(TTM)1.37
EY1.87%
EPS(NY)2.77
Fwd EY3.79%
FCF(TTM)2.17
FCFY2.96%
OCF(TTM)3.74
OCFY5.11%
SpS32.6
BVpS10.25
TBVpS5.75
PEG (NY)0.94
PEG (5Y)5.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 12.02% | ||
| ROCE | 9.19% | ||
| ROIC | 6.88% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 9.58% | ||
| OM | 5.85% | ||
| PM (TTM) | 3.78% | ||
| GM | 14.16% | ||
| FCFM | 6.64% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.24 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 94.63% | ||
| Cap/Sales | 4.82% | ||
| Interest Coverage | 4.92 | ||
| Cash Conversion | 104.71% | ||
| Profit Quality | 175.74% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 4.52 |
F-Score6
WACC10.21%
ROIC/WACC0.67
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)26.85%
EPS 3Y43.15%
EPS 5Y9.72%
EPS Q2Q%26.32%
EPS Next Y57.02%
EPS Next 2Y44.96%
EPS Next 3Y46.51%
EPS Next 5YN/A
Revenue 1Y (TTM)16.65%
Revenue growth 3Y26.05%
Revenue growth 5Y18.42%
Sales Q2Q%41.63%
Revenue Next Year39.84%
Revenue Next 2Y24.56%
Revenue Next 3Y21.05%
Revenue Next 5YN/A
EBIT growth 1Y54.2%
EBIT growth 3Y54.42%
EBIT growth 5Y14.42%
EBIT Next Year224.65%
EBIT Next 3Y63.07%
EBIT Next 5YN/A
FCF growth 1Y103.96%
FCF growth 3YN/A
FCF growth 5Y56.76%
OCF growth 1Y33%
OCF growth 3Y62.75%
OCF growth 5Y30.47%