Taking everything into account, ROAD scores 4 out of 10 in our fundamental rating. ROAD was compared to 55 industry peers in the Construction & Engineering industry. There are concerns on the financial health of ROAD while its profitability can be described as average. ROAD is valued quite expensive, but it does show an excellent growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
ROAD had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of ROAD (3.14%) is comparable to the rest of the industry.
ROAD's Return On Equity of 11.16% is in line compared to the rest of the industry. ROAD outperforms 54.55% of its industry peers.
ROAD has a Return On Invested Capital of 6.78%. This is comparable to the rest of the industry: ROAD outperforms 56.36% of its industry peers.
ROAD had an Average Return On Invested Capital over the past 3 years of 6.46%. This is significantly below the industry average of 15.97%.
The last Return On Invested Capital (6.78%) for ROAD is above the 3 year average (6.46%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	3.14%
ROE	11.16%
ROIC	6.78%

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

ROAD has a Profit Margin of 3.62%. This is comparable to the rest of the industry: ROAD outperforms 54.55% of its industry peers.
In the last couple of years the Profit Margin of ROAD has declined.
Looking at the Operating Margin, with a value of 8.52%, ROAD is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
ROAD's Operating Margin has improved in the last couple of years.
ROAD has a Gross Margin of 15.61%. This is comparable to the rest of the industry: ROAD outperforms 45.45% of its industry peers.
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	8.52%
PM (TTM)	3.62%
GM	15.61%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
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

An Altman-Z score of 3.04 indicates that ROAD is not in any danger for bankruptcy at the moment.
ROAD has a Altman-Z score of 3.04. This is comparable to the rest of the industry: ROAD outperforms 54.55% of its industry peers.
The Debt to FCF ratio of ROAD is 10.51, which is on the high side as it means it would take ROAD, 10.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ROAD (10.51) is comparable to the rest of the industry.
ROAD has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
ROAD has a Debt to Equity ratio of 1.73. This is in the lower half of the industry: ROAD underperforms 72.73% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.73
Debt/FCF	10.51
Altman-Z	3.04

ROIC/WACC0.67

WACC10.09%

2.3 Liquidity

A Current Ratio of 1.61 indicates that ROAD should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.61, ROAD is doing good in the industry, outperforming 78.18% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that ROAD should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.34, ROAD is doing good in the industry, outperforming 65.45% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.61
Quick Ratio	1.34

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 65.91% over the past year.
Measured over the past years, ROAD shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.93% on average per year.
Looking at the last year, ROAD shows a very strong growth in Revenue. The Revenue has grown by 54.20%.
The Revenue has been growing by 29.05% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)65.91%

EPS 3Y74.8%

EPS 5Y22.93%

EPS Q2Q%89.29%

Revenue 1Y (TTM)54.2%

Revenue growth 3Y29.28%

Revenue growth 5Y29.05%

Sales Q2Q%67.21%

3.2 Future

The Earnings Per Share is expected to grow by 19.89% on average over the next years. This is quite good.
The Revenue is expected to grow by 16.51% on average over the next years. This is quite good.

EPS Next Y32.41%

EPS Next 2Y28.82%

EPS Next 3Y19.89%

EPS Next 5YN/A

Revenue Next Year22.93%

Revenue Next 2Y16.19%

Revenue Next 3Y14.54%

Revenue Next 5Y16.51%

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 stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

ROAD is valuated quite expensively with a Price/Earnings ratio of 50.67.
ROAD's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.21, ROAD is valued quite expensively.
A Price/Forward Earnings ratio of 38.27 indicates a quite expensive valuation of ROAD.
ROAD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ROAD is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	50.67
Fwd PE	38.27

4.2 Price Multiples

ROAD's Enterprise Value to EBITDA ratio is in line with the industry average.
ROAD's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	40.9
EV/EBITDA	19.93

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.