Construction Partners, Inc. (ROAD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Fluor Corp.

Installed Building Products, Inc.

Primoris Services Corp.

IHS Holding Ltd.

Why is Construction Partners, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.50

Healthy long term growth as Net Sales has grown by an annual rate of 30.74%

With a growth in Net Profit of 117.79%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 342.78 MM
ROCE(HY) Highest at 14.21%
PRE-TAX PROFIT(Q) At USD 14.55 MM has Grown at 129.33%

With ROCE of 10.22%, it has a fair valuation with a 3.00 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 18.57%, its profits have risen by 77.6% ; the PEG ratio of the company is 0.6

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

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.

18.57%

2.57

48.44%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.97%

ROE (avg)

8.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.44

EV to EBIT

29.37

EV to EBITDA

18.33

EV to Capital Employed

3.00

EV to Sales

2.58

PEG Ratio

0.62

Dividend Yield

ROCE (Latest)

10.22%

ROE (Latest)

13.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 342.78 MM

ROCE(HY)

Highest at 14.21%

PRE-TAX PROFIT(Q)

At USD 14.55 MM has Grown at 129.33%

NET PROFIT(Q)

At USD 11.07 MM has Grown at 129.1%

RAW MATERIAL COST(Y)

Fallen by -4.79% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.29 times

NET SALES(Q)

At USD 769.2 MM has Grown at 34.56%

-6What is not working for the Company

INTEREST(9M)

At USD 81.39 MM has Grown at 63.27%

DEBT-EQUITY RATIO (HY)

Highest at 180.57 %

OPERATING PROFIT MARGIN(Q)

Lowest at 10.78 %

Here's what is working for Construction Partners, Inc.

Operating Cash Flow

Highest at USD 342.78 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 14.55 MM has Grown at 129.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 11.07 MM has Grown at 129.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

At USD 769.2 MM has Grown at 34.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debtors Turnover Ratio

Highest at 6.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.79% (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 46.27 MM

in the last five periods

MOJO 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 81.39 MM has Grown at 63.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 180.57 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit Margin

Lowest at 10.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales