CONSTRUCTION PARTNERS INC-A (ROAD) Stock Fundamental Analysis
USA - NASDAQ:ROAD - US21044C1071 - Common Stock
106.82 USD
+0.7 (+0.66%)
106.82 USD
0 (0%)
Taking everything into account, ROAD scores 5 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 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.
ROAD had positive earnings in each of the past 5 years.
Each year in the past 5 years ROAD had a positive operating cash flow.
1.2 Ratios
ROAD's Return On Assets of 2.55% is in line compared to the rest of the industry. ROAD outperforms 50.91% of its industry peers.
ROAD has a Return On Equity (8.73%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.74%, ROAD perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
ROAD had an Average Return On Invested Capital over the past 3 years of 5.11%. This is significantly below the industry average of 16.81%.
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 of 3.04%. This is comparable to the rest of the industry: ROAD outperforms 52.73% of its industry peers.
In the last couple of years the Profit Margin of ROAD has declined.
ROAD's Operating Margin of 7.43% is fine compared to the rest of the industry. ROAD outperforms 61.82% of its industry peers.
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 43.64% 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.
ROAD has more shares outstanding than it did 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.
The Altman-Z score of ROAD (3.04) is comparable to the rest of the industry.
The Debt to FCF ratio of ROAD is 9.38, which is on the high side as it means it would take ROAD, 9.38 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.38, ROAD perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
ROAD has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ROAD (1.63) is worse than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 9.38 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.57
WACC10.07%
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.
The Current ratio of ROAD (1.47) is better than 70.91% of its industry peers.
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.
ROAD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.72% yearly.
Looking at the last year, ROAD shows a very strong growth in Revenue. The Revenue has grown by 39.18%.
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)25.19%
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 39.30% on average per year.
Based on estimates for the next years, ROAD will show a very strong growth in Revenue. The Revenue will grow by 23.08% on average per year.
EPS Next Y71.93%
EPS Next 2Y50.81%
EPS Next 3Y39.3%
EPS Next 5YN/A
Revenue Next Year52.9%
Revenue Next 2Y36.29%
Revenue Next 3Y25.72%
Revenue Next 5Y23.08%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ROAD is valuated quite expensively with a Price/Earnings ratio of 63.21.
Compared to the rest of the industry, the Price/Earnings ratio of ROAD is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.89, ROAD is valued quite expensively.
The Price/Forward Earnings ratio is 35.58, which means the current valuation is very expensive for ROAD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROAD is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.59. ROAD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.21 | ||
| Fwd PE | 35.58 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.27 | ||
| EV/EBITDA | 23.03 |
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 39.30% in the coming years.
PEG (NY)0.88
PEG (5Y)6.5
EPS Next 2Y50.81%
EPS Next 3Y39.3%
5. Dividend
5.1 Amount
No dividends for ROAD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
106.82
+0.7 (+0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners101.29%
Inst Owner Change-2.77%
Ins Owners1.64%
Ins Owner Change-0.33%
Market Cap5.99B
Revenue(TTM)2.45B
Net Income(TTM)74.52M
Analysts87.27
Price Target131.24 (22.86%)
Short Float %6.41%
Short Ratio6.44
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)6.04%
PT rev (3m)13.36%
EPS NQ rev (1m)-1.77%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)3.05%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.21 | ||
| Fwd PE | 35.58 | ||
| P/S | 2.44 | ||
| P/FCF | 39.27 | ||
| P/OCF | 21.76 | ||
| P/B | 7.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.03 |
EPS(TTM)1.69
EY1.58%
EPS(NY)3
Fwd EY2.81%
FCF(TTM)2.72
FCFY2.55%
OCF(TTM)4.91
OCFY4.6%
SpS43.69
BVpS15.21
TBVpS-0.08
PEG (NY)0.88
PEG (5Y)6.5
Graham Number24.05
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%
ROICexgc growth 3Y21.65%
ROICexgc 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 | 3.04 |
F-Score5
WACC10.07%
ROIC/WACC0.57
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 Y71.93%
EPS Next 2Y50.81%
EPS Next 3Y39.3%
EPS Next 5YN/A
Revenue 1Y (TTM)39.18%
Revenue growth 3Y26.05%
Revenue growth 5Y18.42%
Sales Q2Q%50.5%
Revenue Next Year52.9%
Revenue Next 2Y36.29%
Revenue Next 3Y25.72%
Revenue Next 5Y23.08%
EBIT growth 1Y72.71%
EBIT growth 3Y54.42%
EBIT growth 5Y14.42%
EBIT Next Year274.37%
EBIT Next 3Y67.32%
EBIT Next 5Y46.03%
FCF growth 1Y510.32%
FCF growth 3YN/A
FCF growth 5Y56.76%
OCF growth 1Y128.17%
OCF growth 3Y62.75%
OCF growth 5Y30.47%
CONSTRUCTION PARTNERS INC-A / ROAD FAQ
Can you provide the ChartMill fundamental rating for CONSTRUCTION PARTNERS INC-A?
ChartMill assigns a fundamental rating of 5 / 10 to ROAD.
What is the valuation status of CONSTRUCTION PARTNERS INC-A (ROAD) stock?
ChartMill assigns a valuation rating of 3 / 10 to CONSTRUCTION PARTNERS INC-A (ROAD). This can be considered as Overvalued.
What is the profitability of ROAD stock?
CONSTRUCTION PARTNERS INC-A (ROAD) has a profitability rating of 5 / 10.
What are the PE and PB ratios of CONSTRUCTION PARTNERS INC-A (ROAD) stock?
The Price/Earnings (PE) ratio for CONSTRUCTION PARTNERS INC-A (ROAD) is 63.21 and the Price/Book (PB) ratio is 7.02.