Construction Partners, Inc. (ROAD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-152.4%

-$50.59

vs $96.61 price

Levered DCF

$60.30

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.77

Grey zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	68.65×	52.48×	38.48×	63.98×	85.56×	23.33×	18.55×	10.64×
P/B	7.65×	6.31×	3.67×	2.98×	4.21×	2.43×	2.33×	1.8×
P/S	2.48×	1.99×	1.21×	1.04×	1.89×	1.19×	1.02×	0.79×
EV / EBITDA	22.81×	19.09×	13.15×	16.69×	23.4×	9.37×	8.68×	5.8×
Gross margin	15.6%	14.2%	12.7%	10.5%	12.8%	15.6%	15.1%	14.6%
Operating margin	8.5%	5.9%	4.6%	2.3%	3.4%	6.8%	7.1%	6.5%
Net margin	3.6%	3.8%	3.1%	1.6%	2.2%	5.1%	5.5%	7.5%
Current ratio	1.61×	1.54×	1.7×	1.84×	1.9×	2.44×	2.18×	1.99×
Debt / equity	1.85×	0.96×	0.76×	0.86×	0.55×	0.26×	0.15×	0.21×
Interest coverage	2.65×	3.65×	2.82×	3.5×	12.7×	17.29×	29.78×	34.99×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	4.1%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	43.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.2%	12.0%	9.5%	4.7%	4.9%	10.5%	12.6%	17.0%
Return on invested capital	6.7%	6.8%	5.7%	2.6%	3.3%	8.1%	10.2%	9.8%
Return on assets	3.1%	4.5%	4.0%	2.0%	2.5%	6.4%	8.1%	10.2%
Free cash flow yield	2.2%	3.3%	3.1%	-3.9%	-0.5%	5.6%	1.6%	4.3%
Earnings yield	1.5%	1.9%	2.6%	1.6%	1.2%	4.3%	5.4%	9.4%
Enterprise value	$8.5B	$4.1B	$2.2B	$1.7B	$1.9B	$888.4M	$770.5M	$502.4M
Net debt / EBITDA	4.11×	2.23×	2.01×	3.45×	2.05×	-0.51×	-0.34×	-0.42×
Cash conversion cycle (days)	57	58	59	65	58	50	55	49