Construction Partners, Inc., an infrastructure and road construction company, provides construction products and services to public and private sectors. Its services cover construction of highways, roads, bridges, airports, and commercial and residential sites. The company provides site development, paving, utility and drainage systems, as well as supplies hot mix asphalt. It serves customers primarily in Alabama, Florida, Georgia, North Carolina, and South Carolina. 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 founded in 2001 and is based in Dothan, Alabama.
ROAD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Construction Partners Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Construction Partners Inc ranked in the 37th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 30.67%. As for the metrics that stood out in our discounted cash flow analysis of Construction Partners Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 94. Notably, its equity weight is greater than 87.18% of US equities in the Industrials sector yielding a positive free cash flow.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than merely 16.87% of the free cash flow producing stocks we're observing.
ROAD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 42.17% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AME, AVY, CCRN, LAWS, and PCAR can be thought of as valuation peers to ROAD, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Construction Partners, Inc. (NASDAQ: ROAD) (the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways across five southeastern states, today announced that it will release its fiscal 2020 third quarter results on August 7, 2020, before the market opens. In conjunction with the earnings release, the Company has scheduled a conference call to discuss its third quarter results the same day at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The conference call may be accessed by phone or webcast, as follows:
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
Construction Partners (ROAD) prices its secondary offering of 5.75M shares (from 5M shares) at a public offering price of $16.50/share.Underwriter's over-allotment is an additional 0.8625M shares.The selling stockholders will receive all of the net proceeds from the offering.Closing date is June 15.Shares down 13% in early trade.Previously: Construction Partners down 6% after...
Construction Partners (ROAD) -6% after-hours following news of a secondary offering of ~5.0M shares by affiliates of SunTx Capital Management.Underwriter's over-allotment is an additional 0.75M shares.ROAD is not selling any shares of Class A common stock in the offering and will not receive any proceeds from such offering.Press Release...