ScoreWhy is Construction Partners, Inc. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.50
2
Healthy long term growth as Net Sales has grown by an annual rate of 30.74%
3
With a growth in Operating Profit of 61.54%, the company declared Very Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at USD 333.2 MM
- ROCE(HY) Highest at 13.71%
- PRE-TAX PROFIT(Q) At USD 34.41 MM has Grown at 119.89%
4
With ROCE of 10.22%, it has a fair valuation with a 3.21 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 44.92%, its profits have risen by 77.6% ; the PEG ratio of the company is 0.7
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Returns over the last 3 years
- Along with generating 44.92% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Construction Partners, Inc. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Construction Partners, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Construction Partners, Inc.
44.92%
1.95
47.03%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
30.74%
EBIT Growth (5y)
35.89%
EBIT to Interest (avg)
7.50
Debt to EBITDA (avg)
3.06
Net Debt to Equity (avg)
1.57
Sales to Capital Employed (avg)
1.38
Tax Ratio
25.33%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
6.97%
ROE (avg)
8.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
50
Industry P/E
Price to Book Value
7.01
EV to EBIT
31.41
EV to EBITDA
19.60
EV to Capital Employed
3.21
EV to Sales
2.76
PEG Ratio
0.68
Dividend Yield
NA
ROCE (Latest)
10.22%
ROE (Latest)
13.99%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 333.2 MM
ROCE(HY)
Highest at 13.71%
PRE-TAX PROFIT(Q)
At USD 34.41 MM has Grown at 119.89%
RAW MATERIAL COST(Y)
Fallen by -12.51% (YoY
CASH AND EQV(HY)
Highest at USD 263.2 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 6.69 times
NET SALES(Q)
At USD 809.47 MM has Grown at 44.14%
NET PROFIT(Q)
At USD 25.99 MM has Grown at 57.48%
-12What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 178.93 %
INTEREST(Q)
Highest at USD 29.03 MM
Here's what is working for Construction Partners, Inc.
Operating Cash Flow
Highest at USD 333.2 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Pre-Tax Profit
At USD 34.41 MM has Grown at 119.89%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Sales
At USD 809.47 MM has Grown at 44.14%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Profit
At USD 25.99 MM has Grown at 57.48%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Cash and Eqv
Highest at USD 263.2 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 6.69 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -12.51% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 45.03 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Construction Partners, Inc.
Interest
At USD 29.03 MM has Grown at 14.3%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 178.93 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at USD 29.03 MM
in the last five periods and Increased by 14.3% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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