NasdaqGS:ROAD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with concerning outlook.


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


Market Performance


7 Day Return

7.6%

ROAD

3.5%

US Construction

0.4%

US Market


1 Year Return

66.3%

ROAD

8.3%

US Construction

6.9%

US Market

Return vs Industry: ROAD exceeded the US Construction industry which returned 8.3% over the past year.

Return vs Market: ROAD exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

ROADIndustryMarket
7 Day7.6%3.5%0.4%
30 Day4.5%1.4%-1.2%
90 Day23.3%3.7%-0.4%
1 Year66.3%66.3%9.2%8.3%9.3%6.9%
3 Yearn/a28.4%25.5%45.8%36.4%
5 Yearn/a23.9%19.7%62.9%45.1%

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

Valuation

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

20.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ROAD ($16.95) is trading above our estimate of fair value ($16.79)

Significantly Undervalued: 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 (20.9x) compared to the Construction industry average (17.6x).

PE vs Market: ROAD is poor value based on its PE Ratio (20.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ROAD is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ROAD is overvalued based on its PB Ratio (2.7x) compared to the US Construction industry average (1.7x).


Next Steps

Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROAD's forecast earnings growth (10% per year) is above the savings rate (2.7%).

Earnings vs Market: ROAD's earnings (10% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: ROAD's revenue (5.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ROAD's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ROAD'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?

-12.9%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ROAD's year-on-year earnings growth rate was positive 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 (-12.9%) over the past year, making it difficult to compare to the Construction industry average (2.6%).


Return on Equity

High ROE: ROAD's Return on Equity (12.8%) is considered low.


Return on Assets

ROA vs Industry: ROAD has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ROAD's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Construction Partners's financial position?


Financial Position Analysis

Short Term Liabilities: ROAD's short term assets ($259.0M) exceeds its short term liabilities ($131.4M)

Long Term Liabilities: ROAD's short term assets (259.0M) exceeds its long term liabilities (51.5M)


Debt to Equity History and Analysis

Debt Level: ROAD's debt to equity ratio (15.9%) is considered satisfactory

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 (116.5%).

Interest Coverage: ROAD's interest payments on its debt are well covered by EBIT (29x coverage).


Balance Sheet

Inventory Level: ROAD has a high level of physical assets or inventory.

Debt Coverage by Assets: ROAD's debt is covered by short term assets (assets are 4.993570x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Construction Partners's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Charles Owens (68yo)

18.8yrs

Tenure

US$1,557,041

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: Insufficient data to establish whether Charles's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Charles's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

Experienced Management: ROAD's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

17.8yrs

Average Tenure

60yo

Average Age

Experienced Board: ROAD's board of directors are seasoned and experienced ( 17.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$67,331,00020 Sep 19
SunTx Capital Partners
EntityCompany
Shares5,000,000
Max PriceUS$13.47
BuyUS$98,23010 Jan 19
John Harper
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares11,000
Max PriceUS$8.93
BuyUS$33,89526 Dec 18
Ned Fleming
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares4,000
Max PriceUS$8.47
BuyUS$8,41926 Dec 18
Mark Matteson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$8.42
BuyUS$13,03019 Dec 18
R. Palmer
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,500
Max PriceUS$8.69
BuyUS$75,71017 Dec 18
John Harper
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares9,000
Max PriceUS$8.43

Ownership Breakdown


Management Team

  • Ned Fleming (59yo)

    Executive Chairman of the Board

    • Tenure: 18.8yrs
  • John Walker (62yo)

    Senior Vice President

    • Tenure: 2.8yrs
  • Charles Owens (68yo)

    President

    • Tenure: 18.8yrs
    • Compensation: US$1.56m
  • R. Palmer (67yo)

    Executive VP & CFO

    • Tenure: 13.8yrs
    • Compensation: US$1.45m
  • Tommy Crenshaw

    Chief Information officer

    • Tenure: 0yrs
  • Todd Andrews (56yo)

    Chief Accounting Officer

    • Tenure: 0.8yrs
  • Jule Smith (49yo)

    Senior Vice President

    • Tenure: 2.8yrs
    • Compensation: US$1.15m
  • John Harper (54yo)

    Senior Vice President

    • Tenure: 2.8yrs
  • Robert Flowers (59yo)

    Senior Vice President

    • Tenure: 2.8yrs
  • J. Brooks (30yo)

    Senior Vice President of Legal

    • Tenure: 1.2yrs

Board Members

  • Ned Fleming (59yo)

    Executive Chairman of the Board

    • Tenure: 18.8yrs
  • Craig Jennings (60yo)

    Director

    • Tenure: 2.8yrs
  • Mark Matteson

    Director

    • Tenure: 18.8yrs
  • Stefan Shaffer (62yo)

    Director

    • Tenure: 2.8yrs
  • Mike McKay

    Director

    • Tenure: 17.8yrs
    • Compensation: US$60.00k
  • Noreen Skelly (54yo)

    Director

    • Tenure: 0.5yrs
  • Charles Owens (68yo)

    President

    • Tenure: 18.8yrs
    • Compensation: US$1.56m

Company Information

Construction Partners, Inc.'s company bio, 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$877.701m
  • 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 sectors. It offers construction of highways, roads, bridges,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:45
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.