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Construction Partners, Inc. (ROAD)

NEUTRAL
IndustrialsEngineering & ConstructionUnited States

Fundamental

70

Price

$108.98

Market Cap

$6.26B

Part 1 · What the company is worth

Overview

Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas. The company provides various products and services to public and private infrastructure projects, such as 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; and paving activities, including the construction of roadway base layers and application of asphalt pavement. In addition, the company is involved in site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel, and construction stones 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. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was incorporated in 2007 and is headquartered in Dothan, Alabama.

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Direct competitors

Who this company fights with for the same customers

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Balance Sheet & Liquidity

Revenue

$3.48B

Trailing 12 months (through 6/30/2026)

Net Income

$143M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$153M

Total Equity

$912M

Total Liabilities

$2.33B

Current Ratio

1.57

Interest Coverage

2.74

Debt/EBITDA

5.13

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Undervalued

Fair Value

$160.07

Current Price

$108.98

Margin of Safety

+31.9%

Fair Value Range

$104.05 - $216.10

Estimation Methods

Analyst Target:$142.57
DCF:$240.60
PE-based:$71.37
Graham Growth:$102.86
EPV:$43.40
Analyst Consensus:Strong Buy (10B / 3H / 0S)
Last Earnings Surprise:+1.16%

Valuation Metrics

P/E Ratio

42.38

ROE

11.2%

P/B Ratio

2.30

P/FCF

13.66

Gross Margin

15.8%

ROIC

7.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

7.8%

WACC

8.4%

ROIC − WACC

-0.5 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (20)

  • EPS shows upward trend
  • EPS CAGR 14.34%
  • Price CAGR 37.40%
  • ROIC 7.9%
  • P/FCF 13.66
  • P/B Ratio 2.30
  • Debt/Equity ratio
  • Operating Margin 8.6%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 14.6%
  • Revenue Growth 5Y 29.1%
  • Analyst Consensus 77% Buy
  • Earnings Surprise avg 194.7%
  • Earnings Quality (OCF/NI) 2.48
  • Net Margin Trend 4.1% vs 3.0%
  • Piotroski F-Score 5/9

Failed (7)

  • Gross Margin 15.8%
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • PEG Ratio 2.54
  • Share Dilution 5.1%

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

2.48

High quality: earnings backed by cash

Share Dilution

5.1%

Issuing new shares, diluting ownership

Governance

Executive Team

NameTitleAge
Mr. Ned N. Fleming IIIExecutive Chairman of the Board65
Mr. Fred J. Smith IIIPresident, CEO & Director55
Mr. Gregory A. HoffmanSenior VP & CFO59
Mr. Robert G. BaugnonSenior Vice President of Personnel & Administration58
Mr. Judson Ryan Brooks J.D.Senior VP & General Counsel36
Mr. N. Nelson Fleming IVSenior Vice President of Strategy and Business Development36

Audit Risk

8

Board Risk

10

Compensation Risk

5

Shareholder Rights Risk

10

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for ROAD, sourced from Markets Gazette.

No recent news for ROAD.