ROAD Stock 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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$26.96|
|52 Week High||US$44.99|
|52 Week Low||US$18.89|
|1 Month Change||30.87%|
|3 Month Change||30.05%|
|1 Year Change||-15.83%|
|3 Year Change||92.43%|
|5 Year Change||n/a|
|Change since IPO||122.81%|
Recent News & Updates
Construction Partners Q3 2022 Earnings Preview
Construction Partners (NASDAQ:ROAD) is scheduled to announce Q3 earnings results on Friday, August 5th, before market open. The consensus EPS Estimate is $0.15 (-16.7% Y/Y) and the consensus Revenue Estimate is $316.77M (+21.0% Y/Y). Over the last 3 months, EPS estimates have seen 0 upward revisions and 4 downward. Revenue estimates have seen 2 upward revisions and 2 downward.
A Look At The Intrinsic Value Of Construction Partners, Inc. (NASDAQ:ROAD)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Construction Partners...
At US$19.62, Is Construction Partners, Inc. (NASDAQ:ROAD) Worth Looking At Closely?
While Construction Partners, Inc. ( NASDAQ:ROAD ) might not be the most widely known stock at the moment, it received a...
|ROAD||US Construction||US Market|
Return vs Industry: ROAD underperformed the US Construction industry which returned 10% over the past year.
Return vs Market: ROAD underperformed the US Market which returned -12.9% over the past year.
|ROAD Average Weekly Movement||7.4%|
|Construction Industry Average Movement||6.2%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.2%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: ROAD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: ROAD's weekly volatility (7%) has been stable over the past year.
About the Company
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
|ROAD fundamental statistics|
Is ROAD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ROAD income statement (TTM)|
|Cost of Revenue||US$1.06b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.31|
|Net Profit Margin||1.36%|
How did ROAD perform over the long term?See historical performance and comparison
Is ROAD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 0/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ROAD?
Other financial metrics that can be useful for relative valuation.
|What is ROAD's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ROAD's PE Ratio compare to its peers?
|ROAD PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
MYRG MYR Group
PRIM Primoris Services
NVEE NV5 Global
GVA Granite Construction
ROAD Construction Partners
Price-To-Earnings vs Peers: ROAD is expensive based on its Price-To-Earnings Ratio (87.7x) compared to the peer average (37.3x).
Price to Earnings Ratio vs Industry
How does ROAD's PE Ratio compare vs other companies in the US Construction Industry?
Price-To-Earnings vs Industry: ROAD is expensive based on its Price-To-Earnings Ratio (87.7x) compared to the US Construction industry average (30.9x)
Price to Earnings Ratio vs Fair Ratio
What is ROAD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||87.7x|
|Fair PE Ratio||25.2x|
Price-To-Earnings vs Fair Ratio: ROAD is expensive based on its Price-To-Earnings Ratio (87.7x) compared to the estimated Fair Price-To-Earnings Ratio (25.2x).
Share Price vs Fair Value
What is the Fair Price of ROAD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ROAD ($26.96) is trading above our estimate of fair value ($21.21)
Significantly Below Fair Value: ROAD is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is lower than the current share price.
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How is Construction Partners forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ROAD's forecast earnings growth (26.9% per year) is above the savings rate (1.9%).
Earnings vs Market: ROAD's earnings (26.9% per year) are forecast to grow faster than the US market (12.8% per year).
High Growth Earnings: ROAD's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ROAD's revenue (5.4% per year) is forecast to grow slower than the US market (8% 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
Future ROE: ROAD's Return on Equity is forecast to be low in 3 years time (9.5%).
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How has Construction Partners performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ROAD has high quality earnings.
Growing Profit Margin: ROAD's current net profit margins (1.4%) are lower than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: ROAD's earnings have declined by 12.9% 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 (-45.8%) over the past year, making it difficult to compare to the Construction industry average (10%).
Return on Equity
High ROE: ROAD's Return on Equity (3.8%) is considered low.
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How is Construction Partners's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ROAD's short term assets ($389.1M) exceed its short term liabilities ($204.1M).
Long Term Liabilities: ROAD's short term assets ($389.1M) exceed its long term liabilities ($385.5M).
Debt to Equity History and Analysis
Debt Level: ROAD's net debt to equity ratio (76.1%) is considered high.
Reducing Debt: ROAD's debt to equity ratio has increased from 37.9% to 82.1% over the past 5 years.
Debt Coverage: ROAD's debt is not well covered by operating cash flow (8.3%).
Interest Coverage: ROAD's interest payments on its debt are well covered by EBIT (6x coverage).
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What is Construction Partners's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ROAD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ROAD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ROAD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ROAD's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as ROAD has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jule Smith (52 yo)
Mr. Fred Julius Smith, III also known as Jule, has been President and Chief Executive Officer at Construction Partners, Inc. since April 1, 2021. He serves as Director at Construction Partners, Inc. since...
CEO Compensation Analysis
Compensation vs Market: Jule's total compensation ($USD3.94M) is about average for companies of similar size in the US market ($USD5.43M).
Compensation vs Earnings: Jule's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: ROAD's management team is seasoned and experienced (5.6 years average tenure).
Experienced Board: ROAD's board of directors are seasoned and experienced ( 13.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ROAD insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Construction Partners, Inc.'s employee growth, exchange listings and data sources
- Name: Construction Partners, Inc.
- Ticker: ROAD
- Exchange: NasdaqGS
- Founded: 1999
- Industry: Construction and Engineering
- Sector: Capital Goods
- Implied Market Cap: US$1.417b
- Shares outstanding: 52.55m
- Website: https://www.constructionpartners.net
Number of Employees
- Construction Partners, Inc.
- 290 Healthwest Drive
- Suite 2
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/07 00:00|
|End of Day Share Price||2022/08/05 00:00|
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.