DB:CQY

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Construction Partners

Executive Summary

Construction Partners, Inc., an infrastructure and road construction company, provides construction products and services to public and private infrastructure projects.

Rewards

Earnings are forecast to grow 8.31% per year

Risk Analysis

CQY passed our risk checks.


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Construction Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CQY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

16.5%

CQY

7.5%

DE Construction

2.6%

DE Market


1 Year Return

26.1%

CQY

-26.6%

DE Construction

8.1%

DE Market

Return vs Industry: CQY exceeded the German Construction industry which returned -26.6% over the past year.

Return vs Market: CQY exceeded the German Market which returned 8.1% over the past year.


Shareholder returns

CQYIndustryMarket
7 Day16.5%7.5%2.6%
30 Day12.3%-6.4%0.7%
90 Dayn/a4.2%11.5%
1 Year26.1%26.1%-20.7%-26.6%10.5%8.1%
3 Yearn/a-42.3%-49.8%6.4%-2.1%
5 Yearn/a9.5%-7.5%15.2%-0.3%

Price Volatility Vs. Market

How volatile is Construction Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Construction Partners undervalued compared to its fair value and its price relative to the market?

25.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CQY (€15.5) is trading above our estimate of fair value (€11.62)

Significantly Below Fair Value: CQY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CQY is poor value based on its PE Ratio (25.6x) compared to the XE Construction industry average (11.4x).

PE vs Market: CQY is poor value based on its PE Ratio (25.6x) compared to the German market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: CQY is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: CQY is overvalued based on its PB Ratio (2.8x) compared to the XE Construction industry average (1.1x).


Next Steps

Future Growth

How is Construction Partners forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CQY's forecast earnings growth (8.3% per year) is above the savings rate (0.2%).

Earnings vs Market: CQY's earnings (8.3% per year) are forecast to grow slower than the German market (24% per year).

High Growth Earnings: CQY's earnings are forecast to grow, but not significantly.

Revenue vs Market: CQY's revenue (5.1% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: CQY's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CQY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Construction Partners performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CQY has high quality earnings.

Growing Profit Margin: CQY's current net profit margins (4.9%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: CQY's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: CQY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CQY had negative earnings growth (-5.8%) over the past year, making it difficult to compare to the Construction industry average (7.6%).


Return on Equity

High ROE: CQY's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Construction Partners's financial position?


Financial Position Analysis

Short Term Liabilities: CQY's short term assets ($275.9M) exceed its short term liabilities ($126.1M).

Long Term Liabilities: CQY's short term assets ($275.9M) exceed its long term liabilities ($80.5M).


Debt to Equity History and Analysis

Debt Level: CQY's debt to equity ratio (18.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CQY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CQY's debt is well covered by operating cash flow (130.8%).

Interest Coverage: CQY's interest payments on its debt are well covered by EBIT (17.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Construction Partners's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CQY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CQY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CQY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CQY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CQY's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Charles Owens (69 yo)

19.58yrs

Tenure

US$1,453,162

Compensation

Mr. Charles E. Owens Founded Construction Partners, Inc. in 2001 and has been its Chief Executive Officer, President and Directors since 2001. Mr. Owens has more than 35 years of experience in the road con ...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD1.45M) is about average for companies of similar size in the German market ($USD1.29M).

Compensation vs Earnings: Charles's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ned Fleming
Executive Chairman of the Board19.58yrsUS$1.48m0.23%
$ 2.0m
Charles Owens
President19.58yrsUS$1.45m3.62%
$ 31.0m
F. Smith
Senior Vice President3.58yrsUS$1.11m0.54%
$ 4.7m
John Harper
Senior Vice President3.58yrsUS$847.51k0.48%
$ 4.1m
R. Palmer
Executive VP & CFO14.58yrsUS$1.45m0.30%
$ 2.6m
Todd Andrews
Chief Accounting Officer1.67yrsno data0.0077%
$ 66.2k
Tommy Crenshaw
Chief Information officerno datano datano data
J. Brooks
Senior Vice President of Legal2yrsno datano data
John Walker
Senior Vice President3.58yrsno datano data
Michael Armstrong
Senior Vice President3.58yrsno datano data
Robert Flowers
Senior Vice President3.58yrsno data0.032%
$ 276.5k
Will Pedersen
President of Riverworksno datano datano data

3.6yrs

Average Tenure

59yo

Average Age

Experienced Management: CQY's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ned Fleming
Executive Chairman of the Board19.58yrsUS$1.48m0.23%
$ 2.0m
Charles Owens
President19.58yrsUS$1.45m3.62%
$ 31.0m
Craig Jennings
Director3.58yrsUS$483.13k0.074%
$ 632.2k
Mark Matteson
Director19.58yrsUS$483.13k0.076%
$ 648.7k
Stefan Shaffer
Independent Director2.58yrsUS$483.13k0.074%
$ 632.2k
Michael McKay
Independent Director18.58yrsUS$483.13k0.14%
$ 1.2m
Noreen Skelly
Independent Director1.33yrsUS$351.92k0.049%
$ 417.0k

18.6yrs

Average Tenure

61yo

Average Age

Experienced Board: CQY's board of directors are seasoned and experienced ( 18.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CQY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Construction Partners, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Construction Partners, Inc.
  • Ticker: CQY
  • Exchange: DB
  • Founded: 2001
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$1.010b
  • Listing Market Cap: US$857.106m
  • Shares outstanding: 51.78m
  • Website: https://www.constructionpartners.net

Number of Employees


Location

  • Construction Partners, Inc.
  • 290 Healthwest Drive
  • Suite 2
  • Dothan
  • Alabama
  • 36303
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROADNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMay 2018
CQYDB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2018

Biography

Construction Partners, Inc., an infrastructure and road construction company, provides construction products and services to public and private infrastructure projects. It offers construction of highways, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 20:46
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.