Construction Partners (ROAD) AI Stock Analysis

• Market Cap: $6.26B
• Dividend Yield: N/A
• Average Volume (3M): 533.70K
• Price to Earnings (P/E): 82.0
• Beta (1Y): 1.59
• Revenue Growth: 39.18%
• EPS Growth: 1.79%
• Country: US
• Employees: 1,325
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.81
• Shares Outstanding: 47,217,170
• 10 Day Avg. Volume: 610,656
• 30 Day Avg. Volume: 533,696
• PEG Ratio: 1.31
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 29.89
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 3.33
• Enterprise Value/Gross Profit: 23.14
• Enterprise Value/Ebitda: 38.41
• 1Y Price Target: $117.25
• Price Target Upside: 4.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $117.00 ▲(4.26% Upside)

Construction Partners' strong financial performance and positive earnings call sentiment are the primary drivers of the stock score. However, the high P/E ratio and technical indicators suggest caution. Recent corporate events positively impact the outlook, but increasing liabilities and valuation concerns temper the overall score.

Positive Factors

Acquisitions

ROAD's recent large acquisitions in Texas and Tennessee are larger and higher margin than previously thought, benefiting margins.

Market Expansion

ROAD's acquisition of a platform company in Tennessee expands the company's footprint from Knoxville in the east to Memphis in the west.

Revenue Growth

Revenue estimates appear to have upside, with ROAD's acquisitions adding over $200M+ of annualized revenue.

Negative Factors

Margin Improvement

There is room for margin improvements, with Lone Star's model providing a blueprint for ROAD to enhance profitability through higher vertical integration.

Market Strategy

ROAD's strategy to build more favorable markets with pricing advantage appears to be compounding slowly but surely.

Organic Growth

ROAD's organic growth target has been raised, with a strong performance in the Southeast and Sunbelt regions, showcasing its growth potential in an uncertain macro environment.

Construction Partners Business Overview & Revenue Model

Company Description

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. 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 1999 and is headquartered in Dothan, Alabama.

How the Company Makes Money

Construction Partners generates revenue primarily through contracts for asphalt paving and road construction projects. The company earns money by bidding on and securing contracts with governmental agencies, municipalities, and private developers for the construction and maintenance of roads and infrastructure. Key revenue streams include the sale of asphalt products produced at its plants and the execution of construction services. Additionally, strategic partnerships with local governments and other construction firms enhance their project opportunities and expand their service offerings. Factors contributing to its earnings include the demand for infrastructure development, government funding for transportation projects, and the company's operational efficiency in managing costs and resources.

Construction Partners Financial Statement Overview

Summary

Construction Partners showcases strong financial performance with high revenue growth and profitability, effective cost management, and robust cash flows. However, increasing liabilities and a slight decrease in net income need monitoring.

Income Statement

Construction Partners has demonstrated impressive growth with a robust revenue growth rate and improving profit margins. The TTM (Trailing-Twelve-Months) gross profit margin and net profit margin show a strong upward trend, indicating effective cost management and profitability improvements. Additionally, both EBIT and EBITDA margins have increased, showcasing operational efficiency. However, a slight decrease in net income in the most recent period due to external factors needs monitoring.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio, suggesting manageable leverage. The equity ratio indicates a solid capital base and asset utilization. Return on Equity (ROE) remains strong, pointing to effective use of shareholder funds. However, the increase in total liabilities warrants attention, as it could impact future financial flexibility.

Cash Flow

Cash flow analysis reveals strong operational cash flow, aligning with net income, which is a positive indicator of earnings quality. The free cash flow remains solid, with a notable growth rate, indicating efficient capital expenditure management. The operating cash flow to net income ratio suggests efficient cash conversion. However, fluctuations in investing cash flow due to capital investments need strategic oversight.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.19B	1.82B	1.56B	1.30B	910.74M	785.68M
Gross Profit	315.49M	258.25M	196.38M	139.30M	119.94M	122.21M
EBITDA	190.05M	111.24M	157.13M	99.13M	84.48M	92.85M
Net Income	61.38M	68.94M	49.00M	21.38M	20.18M	40.30M
Balance Sheet
Total Assets	2.75B	1.54B	1.22B	1.10B	806.62M	628.11M
Cash, Cash Equivalents and Short-Term Investments	101.86M	74.69M	48.24M	35.53M	57.25M	148.32M
Total Debt	1.42B	553.25M	390.73M	389.83M	222.87M	99.65M
Total Liabilities	1.95B	968.39M	703.09M	639.64M	397.72M	242.92M
Stockholders Equity	807.87M	573.74M	516.57M	455.88M	408.90M	385.19M
Cash Flow
Free Cash Flow	126.19M	121.15M	59.35M	-52.35M	-7.83M	52.60M
Operating Cash Flow	226.83M	209.08M	157.16M	16.50M	48.50M	105.17M
Investing Cash Flow	-1.06B	-307.58M	-143.37M	-197.33M	-263.41M	-79.36M
Financing Cash Flow	888.78M	126.11M	-264.00K	159.14M	123.85M	41.89M

Construction Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 112.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROAD, the sentiment is Positive. The current price of 112.22 is above the 20-day moving average (MA) of 103.52, above the 50-day MA of 104.66, and above the 200-day MA of 90.01, indicating a bullish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 60.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROAD.

Construction Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	76 Outperform	$8.07B	35.40	19.76%	―	12.77%	1.55%
IESC	76 Outperform	$6.87B	28.10	36.85%	―	17.83%	34.73%
STRL	76 Outperform	$9.21B	32.91	36.72%	―	3.31%	76.94%
ROAD	75 Outperform	$6.26B	82.03	10.60%	―	39.18%	1.79%
PRIM	75 Outperform	$6.01B	25.25	17.01%	0.27%	15.08%	55.10%
GVA	72 Outperform	$4.64B	35.45	15.89%	0.49%	7.18%	77.84%
Sector *	64 Neutral	$10.66B	16.26	6.50%	2.14%	2.69%	-21.81%

Construction Partners Corporate Events

Construction Partners Acquires Two Companies in Houston Expansion

On August 4, 2025, Construction Partners, Inc. announced the acquisition of Durwood Greene Construction Co. and G&S Asphalt, Inc., expanding its operations in the Houston metro area with three new hot-mix asphalt plants. This acquisition, led by experienced management, is expected to enhance operational excellence and provide vertical integration opportunities, aligning with the company’s strategy to capitalize on Texas’s economic growth and infrastructure development.

The most recent analyst rating on (ROAD) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Construction Partners stock, see the ROAD Stock Forecast page.

Construction Partners Amends Credit Agreement for Expansion

On June 30, 2025, Construction Partners, Inc. and its subsidiaries amended their existing credit agreement, increasing their revolving credit facility to $500 million and term loan facility to $600 million. The amendment also introduced new financial covenants and extended the maturity date to June 28, 2030, potentially enhancing the company’s financial flexibility and operational capacity.

The most recent analyst rating on (ROAD) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Construction Partners stock, see the ROAD Stock Forecast page.