ROAD

Construction PartnersNasdaqGS:ROAD Stock Report

Market Cap

US$1.7b

7D

-5.9%

1Y

89.1%

Updated

22 Sep, 2021

Data

Company Financials +
ROAD fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends0/6

ROAD Overview

Construction Partners, Inc., a civil infrastructure company, engages in the construction and maintenance of roadways across Alabama, Florida, Georgia, North Carolina, and South Carolina.

Construction Partners Competitors

Quanta Services

NYSE:PWR

US$16.1b

MasTec

NYSE:MTZ

US$6.2b

Dycom Industries

NYSE:DY

US$2.0b

Granite Construction

NYSE:GVA

US$1.8b

Price History & Performance

Summary of all time highs, changes and price drops for Construction Partners
Historical stock prices
Current Share PriceUS$32.87
52 Week HighUS$17.05
52 Week LowUS$36.58
Beta1.04
1 Month Change1.08%
3 Month Change4.88%
1 Year Change89.13%
3 Year Change170.31%
5 Year Changen/a
Change since IPO171.65%

Recent News & Updates

Shareholder Returns

ROADUS ConstructionUS Market
7D-5.9%-3.5%-1.7%
1Y89.1%79.4%36.2%

Return vs Industry: ROAD exceeded the US Construction industry which returned 76.8% over the past year.

Return vs Market: ROAD exceeded the US Market which returned 31.5% over the past year.

Price Volatility

Is ROAD's price volatile compared to industry and market?
ROAD volatility
ROAD Beta1.04
Industry Beta1.31
Market Beta1

Stable Share Price: ROAD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ROAD's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001646Jule Smithhttps://www.constructionpartners.net

Construction Partners, Inc., a civil infrastructure company, engages in the construction and maintenance of roadways across Alabama, Florida, Georgia, North Carolina, and South Carolina. The company, through its subsidiaries, provides various products and services to public and private infrastructure projects, with a focus on highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; paving activities, including the construction of roadway base layers and application of asphalt pavement; site development, including the installation of utility and drainage systems; mining aggregates, such as sand and gravel that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production.

Construction Partners Fundamentals Summary

How do Construction Partners's earnings and revenue compare to its market cap?
ROAD fundamental statistics
Market CapUS$1.72b
Earnings (TTM)US$29.83m
Revenue (TTM)US$856.34m

57.6x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROAD income statement (TTM)
RevenueUS$856.34m
Cost of RevenueUS$729.66m
Gross ProfitUS$126.68m
ExpensesUS$96.85m
EarningsUS$29.83m

Valuation

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

57.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROAD ($32.87) is trading above our estimate of fair value ($29.85)

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


Price To Earnings Ratio

PE vs Industry: ROAD is poor value based on its PE Ratio (57.6x) compared to the US Construction industry average (25.6x).

PE vs Market: ROAD is poor value based on its PE Ratio (57.6x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: ROAD is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ROAD is overvalued based on its PB Ratio (4.3x) compared to the US Construction industry average (2.1x).


Future Growth

How is Construction Partners forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROAD's forecast earnings growth (22.2% per year) is above the savings rate (2%).

Earnings vs Market: ROAD's earnings (22.2% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ROAD's revenue (11% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: ROAD's revenue (11% 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 ROAD's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Construction Partners performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROAD has high quality earnings.

Growing Profit Margin: ROAD's current net profit margins (3.5%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: ROAD's earnings have grown by 4% per year over the past 5 years.

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

Earnings vs Industry: ROAD had negative earnings growth (-24.1%) over the past year, making it difficult to compare to the Construction industry average (44.1%).


Return on Equity

High ROE: ROAD's Return on Equity (7.5%) is considered low.


Financial Health

How is Construction Partners's financial position?


Financial Position Analysis

Short Term Liabilities: ROAD's short term assets ($373.4M) exceed its short term liabilities ($151.6M).

Long Term Liabilities: ROAD's short term assets ($373.4M) exceed its long term liabilities ($216.1M).


Debt to Equity History and Analysis

Debt Level: ROAD's debt to equity ratio (49.9%) is considered high.

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

Debt Coverage: ROAD's debt is well covered by operating cash flow (31.6%).

Interest Coverage: ROAD's interest payments on its debt are well covered by EBIT (26.9x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ROAD'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 ROAD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ROAD'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 ROAD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Jule Smith (51 yo)

0.50

Tenure

US$972,194

Compensation

Mr. Fred Julius Smith, III also known as Jule, has been President and Chief Executive Officer at Construction Partners, Inc. since March 31, 2021. He had been the Chief Operating Officer of Construction Pa...


CEO Compensation Analysis

Compensation vs Market: Jule's total compensation ($USD972.19K) is below average for companies of similar size in the US market ($USD3.70M).

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


Leadership Team

Experienced Management: ROAD's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: ROAD's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 employee growth, exchange listings and data sources


Key Information

  • Name: Construction Partners, Inc.
  • Ticker: ROAD
  • Exchange: NasdaqGS
  • Founded: 2001
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$1.719b
  • Shares outstanding: 52.29m
  • Website: https://www.constructionpartners.net

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:38
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.