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ROAD

Construction Partners NasdaqGS:ROAD Stock Report

Last Price

US$26.96

Market Cap

US$1.4b

7D

13.4%

1Y

-15.8%

Updated

06 Aug, 2022

Data

Company Financials +
ROAD fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Construction Partners
Historical stock prices
Current Share PriceUS$26.96
52 Week HighUS$44.99
52 Week LowUS$18.89
Beta0.97
1 Month Change29.80%
3 Month Change11.73%
1 Year Change-15.83%
3 Year Change92.43%
5 Year Changen/a
Change since IPO122.81%

Recent News & Updates

Aug 04

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.

Jul 30
A Look At The Intrinsic Value Of Construction Partners, Inc. (NASDAQ:ROAD)

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...

Jun 22
At US$19.62, Is Construction Partners, Inc. (NASDAQ:ROAD) Worth Looking At Closely?

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...

Shareholder Returns

ROADUS ConstructionUS Market
7D13.4%0.7%1.0%
1Y-15.8%10.0%-12.9%

Return vs Industry: ROAD underperformed the US Construction industry which returned 10.1% over the past year.

Return vs Market: ROAD underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is ROAD's price volatile compared to industry and market?
ROAD volatility
ROAD Average Weekly Movement7.4%
Construction Industry Average Movement6.2%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
1999805Jule 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$1.42b
Earnings (TTM)US$16.16m
Revenue (TTM)US$1.19b

87.7x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROAD income statement (TTM)
RevenueUS$1.19b
Cost of RevenueUS$1.06b
Gross ProfitUS$124.36m
Other ExpensesUS$108.20m
EarningsUS$16.16m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.31
Gross Margin10.47%
Net Profit Margin1.36%
Debt/Equity Ratio82.1%

How did ROAD perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ROAD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

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

  • Analyst Forecast

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.

ROAD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA18.3x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does ROAD's PE Ratio compare to its peers?

ROAD PE Ratio vs Peers
The above table shows the PE ratio for ROAD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.5x
MYRG MYR Group
18.8x11.4%US$1.6b
PRIM Primoris Services
11.1x19.5%US$1.2b
NVEE NV5 Global
37.6x9.5%US$2.0b
GVA Granite Construction
81.8x68.7%US$1.3b
ROAD Construction Partners
87.7x26.9%US$1.4b

Price-To-Earnings vs Peers: ROAD is expensive based on its Price-To-Earnings Ratio (87.7x) compared to the peer average (31.5x).


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 (28.8x)


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.

ROAD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio87.7x
Fair PE Ratio25.2x

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 ($21.18)

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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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.9%

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 (7.9% 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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Past Performance

How has Construction Partners performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.9%

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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Financial Health

How is Construction Partners's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • 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.


Discover strong dividend paying companies

Management

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

5.6yrs

Average management tenure


CEO

Jule Smith (52 yo)

1.33yrs

Tenure

US$3,939,343

Compensation

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 ($USD3.94M) is about average for companies of similar size in the US market ($USD5.42M).

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


Leadership Team

Experienced Management: ROAD's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: ROAD's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

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

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: 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


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 Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/09/30


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.