(ROAD) Construction Partners - Overview
Sector: Industrials | Industry: Engineering & Construction | Exchange: NASDAQ (USA) | Market Cap: 6.674m USD | Total Return: 15.7% in 12m
Industry Rotation: -5.4
Avg Turnover: 58.8M
EPS Trend: 42.1%
Qual. Beats: 2
Rev. Trend: 90.7%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Pead
Construction Partners, Inc. (ROAD) is a civil infrastructure company specializing in the construction and maintenance of roadways across the Southeastern and South-Central United States. The company operates vertically integrated assets, including hot mix asphalt plants and aggregate facilities, which allow it to control raw material costs and supply chains for public and private projects. Its service portfolio encompasses paving, bridge construction, site development, and utility system installation.
The civil infrastructure sector typically benefits from recurring maintenance cycles and long-term federal and state funding appropriations, such as the Infrastructure Investment and Jobs Act. ROAD’s business model relies on geographic density, enabling efficient deployment of equipment and labor across its regional hubs in states like Alabama, Florida, and Texas. This vertical integration is a common strategy in the industry to mitigate the volatility of liquid asphalt and aggregate pricing.
Investors should examine ValueRay for deeper insights into the companys valuation and long-term growth prospects. Construction Partners continues to expand through a combination of organic growth and strategic acquisitions of smaller, local paving contractors.
- Increased federal and state infrastructure spending boosts backlog and revenue growth
- Strategic acquisitions in fragmented markets expand geographic footprint and operational scale
- Fluctuating liquid asphalt and fuel costs impact gross profit margins
- Tight labor markets and wage inflation pressure project execution and profitability
- Population migration to Southeastern states drives long-term demand for private site development
| Net Income: 127.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 0.98 > 1.0 |
| NWC/Revenue: 9.15% < 20% (prev 9.86%; Δ -0.71% < -1%) |
| CFO/TA 0.10 > 3% & CFO 342.8m > Net Income 127.0m |
| Net Debt (1.77b) to EBITDA (443.3m): 3.99 < 3 |
| Current Ratio: 1.53 > 1.5 & < 3 |
| Outstanding Shares: last quarter (56.3m) vs 12m ago 1.05% < -2% |
| Gross Margin: 15.74% > 18% (prev 0.14%; Δ 1.56k% > 0.5%) |
| Asset Turnover: 105.2% > 50% (prev 79.50%; Δ 25.72% > 0%) |
| Interest Coverage Ratio: 2.58 > 6 (EBITDA TTM 443.3m / Interest Expense TTM 105.5m) |
| A: 0.09 (Total Current Assets 862.4m - Total Current Liabilities 564.3m) / Total Assets 3.44b |
| B: 0.13 (Retained Earnings 443.4m / Total Assets 3.44b) |
| C: 0.09 (EBIT TTM 272.2m / Avg Total Assets 3.10b) |
| D: 0.18 (Book Value of Equity 446.5m / Total Liabilities 2.46b) |
| Altman-Z'' Score: 1.77 = BBB |
| DSRI: 0.86 (Receivables 580.4m/455.7m, Revenue 3.26b/2.19b) |
| GMI: 0.92 (GM 15.74% / 14.41%) |
| AQI: 1.13 (AQ_t 0.35 / AQ_t-1 0.31) |
| SGI: 1.49 (Revenue 3.26b / 2.19b) |
| TATA: -0.06 (NI 127.0m - CFO 342.8m) / TA 3.44b) |
| Beneish M-Score: -2.86 (Cap -4..+1) = A |
Over the past week, the price has changed by -15.97%, over one month by -6.04%, over three months by -12.67% and over the past year by +15.67%.
- StrongBuy: 3
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 153.3 | 29.9% |
P/E Forward = 47.1698
P/S = 2.0486
P/B = 8.1214
P/EG = 1.5675
Revenue TTM = 3.26b USD
EBIT TTM = 272.2m USD
EBITDA TTM = 443.3m USD
Long Term Debt = 1.57b USD (from longTermDebt, last fiscal year)
Short Term Debt = 65.3m USD (from shortTermDebt, last quarter)
Debt = 1.85b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.77b USD (from netDebt column, last quarter)
Enterprise Value = 8.44b USD (6.67b + Debt 1.85b - CCE 77.0m)
Interest Coverage Ratio = 2.58 (Ebit TTM 272.2m / Interest Expense TTM 105.5m)
EV/FCF = 44.12x (Enterprise Value 8.44b / FCF TTM 191.3m)
FCF Yield = 2.27% (FCF TTM 191.3m / Enterprise Value 8.44b)
FCF Margin = 5.87% (FCF TTM 191.3m / Revenue TTM 3.26b)
Net Margin = 3.90% (Net Income TTM 127.0m / Revenue TTM 3.26b)
Gross Margin = 15.74% ((Revenue TTM 3.26b - Cost of Revenue TTM 2.74b) / Revenue TTM)
Gross Margin QoQ = 13.03% (prev 15.01%)
Tobins Q-Ratio = 2.46 (Enterprise Value 8.44b / Total Assets 3.44b)
Interest Expense / Debt = 1.39% (Interest Expense 25.6m / Debt 1.85b)
Taxrate = 23.94% (2.89m / 12.1m)
NOPAT = 207.0m (EBIT 272.2m * (1 - 23.94%))
Current Ratio = 1.53 (Total Current Assets 862.4m / Total Current Liabilities 564.3m)
Debt / Equity = 1.88 (Debt 1.85b / totalStockholderEquity, last quarter 979.4m)
Debt / EBITDA = 3.99 (Net Debt 1.77b / EBITDA 443.3m)
Debt / FCF = 9.24 (Net Debt 1.77b / FCF TTM 191.3m)
Total Stockholder Equity = 928.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.10% (Net Income 127.0m / Total Assets 3.44b)
RoE = 13.68% (Net Income TTM 127.0m / Total Stockholder Equity 928.5m)
RoCE = 10.88% (EBIT 272.2m / Capital Employed (Equity 928.5m + L.T.Debt 1.57b))
RoIC = 8.26% (NOPAT 207.0m / Invested Capital 2.51b)
WACC = 9.15% (E(6.67b)/V(8.52b) * Re(11.39%) + D(1.85b)/V(8.52b) * Rd(1.39%) * (1-Tc(0.24)))
Discount Rate = 11.39% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 3.18%
[DCF] Terminal Value 77.93% ; FCFF base≈165.3m ; Y1≈203.9m ; Y5≈347.9m
[DCF] Fair Price = 63.69 (EV 4.82b - Net Debt 1.77b = Equity 3.06b / Shares 48.0m; r=9.15% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 42.14 | EPS CAGR: -6.33% | SUE: 2.84 | # QB: 2
Revenue Correlation: 90.69 | Revenue CAGR: 20.67% | SUE: 3.63 | # QB: 2
EPS current Quarter (2026-06-30): EPS=1.09 | Chg30d=+1.40% | Revisions=-43% | Analysts=5
EPS current Year (2026-09-30): EPS=3.02 | Chg30d=+6.85% | Revisions=+25% | GrowthEPS=+37.2% | GrowthRev=+28.8%
EPS next Year (2027-09-30): EPS=3.86 | Chg30d=+6.20% | Revisions=+0% | GrowthEPS=+27.8% | GrowthRev=+11.4%
[Analyst] Revisions Ratio: -43%