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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Construction Partners Inc. To summarize, we found that Construction Partners Inc ranked in the 8th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Construction Partners Inc, consider:
The company's compound free cash flow growth rate over the past 2.03 years comes in at -0.22%; that's greater than only 8.79% of US stocks we're applying DCF forecasting to.
As a business, ROAD is generating more cash flow than merely 17.18% of positive cash flow stocks in the Industrials.
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than only 18.51% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Construction Partners Inc? See MWA, SRCL, TRI, TRN, and AAWW.
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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...
Image source: The Motley Fool. Construction Partners, Inc. (NASDAQ: ROAD)Q2 2020 Earnings CallMay 9, 2020, 11:00 p.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorGreetings, and welcome the Construction Partners, Inc.