Construction Partners, Inc.
Construction Partners, Inc. Fundamental Analysis
Construction Partners, Inc. (ROAD) shows moderate financial fundamentals with a PE ratio of 51.90, profit margin of 3.99%, and ROE of 13.78%. The company generates $3.1B in annual revenue with strong year-over-year growth of 54.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ROAD's fundamental strength across five key dimensions:
Efficiency Score
WeakROAD struggles to generate sufficient returns from assets.
Valuation Score
WeakROAD trades at a premium to fair value.
Growth Score
ExcellentROAD delivers strong and consistent growth momentum.
Financial Health Score
ModerateROAD shows balanced financial health with some risks.
Profitability Score
WeakROAD struggles to sustain strong margins.
Key Financial Metrics
Is ROAD Expensive or Cheap?
P/E Ratio
ROAD trades at 51.90 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ROAD's PEG of 2.58 indicates potential overvaluation.
Price to Book
The market values Construction Partners, Inc. at 6.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.81 times EBITDA. This signals the market has high growth expectations.
How Well Does ROAD Make Money?
Net Profit Margin
For every $100 in sales, Construction Partners, Inc. keeps $3.99 as profit after all expenses.
Operating Margin
Core operations generate 8.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.78 in profit for every $100 of shareholder equity.
ROA
Construction Partners, Inc. generates $3.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Construction Partners, Inc. produces operating cash flow of $337.45M, showing steady but balanced cash generation.
Free Cash Flow
Construction Partners, Inc. produces free cash flow of $189.01M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.34 in free cash annually.
FCF Yield
ROAD converts 2.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
51.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ROAD Stacks Against Its Sector Peers
| Metric | ROAD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 51.90 | 25.83 | Worse (Expensive) |
| ROE | 13.78% | 1278.00% | Weak |
| Net Margin | 3.99% | -43774.00% (disorted) | Weak |
| Debt/Equity | 1.97 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.59 | 10.63 | Neutral |
| ROA | 3.63% | -1539613.00% (disorted) | Weak |
ROAD outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Construction Partners, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
235.45%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
136.67%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
159.56%
Industry Style: Cyclical, Value, Infrastructure
High Growth