# Construction Partners (ROAD.US)

Canonical: https://gigainvestors.com/s/ROAD

Analysis as of: 2026-10-16T07:31:38.250Z. Financial observations: FY2016–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $83.23 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.33×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.07×

- FY2019: 0.07×

- FY2020: 0.07×

- FY2021: 0.03×

- FY2022: 0.02×

- FY2023: 0.05×

- FY2024: 0.06×

- FY2025: 0.09×

- LTM to Jun 2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.7%

- ROIC, second-lowest year: 4.4%

- Typical minus recent gross margin: -0.8 pp

- Typical gross margin (annual median): 14.8%

- Recent gross margin (lower of latest and 3-year median): 15.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.4%

- ROIC including acquisitions, ten-year median: 7.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 18.5%

- FY2018: 16.0%

- FY2019: 15.3%

- FY2020: 13.4%

- FY2021: 4.4%

- FY2022: 3.3%

- FY2023: 7.7%

- FY2024: 9.9%

- FY2025: 12.1%

- LTM to Jun 2026: 13.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $277M

- Net income, five-year total: $261M

- Return on incremental invested capital: 35.8%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.4 pp

- Working capital / revenue, final three-year average: 16.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.07×

- FY2025: 1.10×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 17.1% vs 9.9%

- Per-share earnings: 0.63 to 1.31 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 1.4%

- Market cap gain: $6.6B

- Cumulative retained earnings: $344M

- Diluted shares, 5-year annual growth: 1.4%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.1%

- Per-share value change: $0.68

- Per-share value, starting three-year median: $0.63

- Per-share value, ending three-year median: $1.31

- Buybacks concentrated in cheaper years (correlation): 0.54

- Average buyback yield: 0.2%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: $444M

- ROIC, first three-year median: 17.1%

- ROIC, last three-year median: 9.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.43

- FY2017: $0.63

- FY2018: $1.11

- FY2019: $0.84

- FY2020: $0.78

- FY2021: $0.39

- FY2022: $0.41

- FY2023: $0.94

- FY2024: $1.31

- FY2025: $1.84

### accounting: pass

- Sloan accruals: -5.9%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 12.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.86×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.12×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.3%

- FY2017: -6.4%

- FY2018: -3.1%

- FY2019: -2.3%

- FY2020: -10.3%

- FY2021: -3.5%

- FY2022: 0.4%

- FY2023: -8.9%

- FY2024: -9.1%

- FY2025: -5.9%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 38% since Feb 2026 · sales +23.7%

Story as of 2026-10-16T09:59:31.132Z; price observation 2026-10-15.

- 2025-05-09: Construction Partners (NASDAQ:ROAD) Surprises With Q1 Sales, Guides for Strong Full-Year Sales ([finance.yahoo.com](https://finance.yahoo.com/news/construction-partners-nasdaq-road-surprises-110921386.html))

- 2025-11-20: Construction Partners misses bottom-line estimates; initiates FY26 outlook ([seekingalpha.com](https://seekingalpha.com/news/4524416-construction-partners-misses-bottom-line-estimates-initiates-fy26-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-06: ROAD Q4 Deep Dive: Acquisitions and Sunbelt Demand Drive Strong Results and Upbeat Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/road-q4-deep-dive-acquisitions-053634759.html))

- 2026-08-07: Construction Partners (ROAD) Earnings Beat Keeps Fair Value In Focus ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/construction-partners-road-earnings-beat-201209545.html))

### Sales · FY2025–2026

sales +23.7%; source https://www.sec.gov/Archives/edgar/data/1718227/000162828025053871/road-20250930.htm; observed 2025-11-25.

- FY2017: $568M 

- FY2018: $680M 

- FY2019: $783M 

- FY2020: $786M 

- FY2021: $911M 

- FY2022: $1.3B 

- FY2023: $1.6B 

- FY2024: $1.8B 

- FY2025: $2.8B 

- FY2026: $3.5B 

### Gross margin · FY2026

gross margin 15.8%; source https://www.sec.gov/Archives/edgar/data/1718227/000162828025053871/road-20250930.htm; observed 2025-11-25.

- FY2017: 16.0% 

- FY2018: 14.6% 

- FY2019: 15.1% 

- FY2020: 15.6% 

- FY2021: 12.8% 

- FY2022: 10.5% 

- FY2023: 12.7% 

- FY2024: 14.2% 

- FY2025: 15.6% 

- FY2026: 15.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are USD 2.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1718227/000162828025053871/road-20250930.htm (filed 2025-11-25); FY2025: revenue 2812356000; grossProfit 439093000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 12.7% to 15.6% during 2023–25; it earns 12.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: grossProfit / revenue = 12.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: grossProfit / revenue = 14.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1718227/000162828025053871/road-20250930.htm (filed 2025-11-25); FY2025: grossProfit / revenue = 15.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); 10-year return on capital observations [[2017,0.1853383607858702],[2018,0.15981692156078925],[2019,0.15274551291450034],[2020,0.13366396864072],[2021,0.04421669673301173],[2022,0.03324806469030497],[2023,0.07744308197652222],[2024,0.09896459236163441],[2025,0.12081122468966246],[2026,0.1367980383954176]]; median 0.12723759666519124. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 35.8% on new investment; paid dividends in 3 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2016: growth capex 0; upkeep 24855000; owner earnings 18697000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2017: growth capex 3327000; upkeep 21072000; cash acquisitions 10843000; owner earnings 26040000. Growth capex plus acquisitions / owner earnings = 0.544162826420891.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2018: growth capex 17483000; upkeep 25321000; cash acquisitions 51319000; owner earnings 50791000. Growth capex plus acquisitions / owner earnings = 1.354610068712961.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2019: growth capex 11248000; upkeep 31231000; cash acquisitions 13854000; owner earnings 43121000. Growth capex plus acquisitions / owner earnings = 0.5821293569258598.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2020: growth capex 602099.2687252909; upkeep 51971900.73127471; cash acquisitions 30191000; owner earnings 27626099.26872529. Growth capex plus acquisitions / owner earnings = 1.1146379722013549.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2021: growth capex 6526000; upkeep 49806000; cash acquisitions 210734000; owner earnings 20177000. Growth capex plus acquisitions / owner earnings = 10.767705803637805.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2022: growth capex 3121000; upkeep 65730000; cash acquisitions 128568000; owner earnings 21376000. Growth capex plus acquisitions / owner earnings = 6.160600673652695.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: growth capex 18710000; upkeep 79100000; cash acquisitions 91787000; owner earnings 49001000. Growth capex plus acquisitions / owner earnings = 2.254994796024571.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: growth capex 0; upkeep 87930000; cash acquisitions 231777000; owner earnings 73925000. Growth capex plus acquisitions / owner earnings = 3.135299289820764.

- Source: https://www.sec.gov/Archives/edgar/data/1718227/000162828025053871/road-20250930.htm (filed 2025-11-25); FY2025: growth capex 0; upkeep 137931000; cash acquisitions 1155153000; owner earnings 112108000. Growth capex plus acquisitions / owner earnings = 10.303930138794733.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Incremental return on capital 0.35795367911075304, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Dividend observations: [[2016,0],[2017,31293000],[2018,21917000],[2019,13570000],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1718227/000162828025053871/road-20250930.htm (filed 2025-11-25); FY2025: cash repurchases 23542000 USD.

### Are managers owners

Insiders own 1.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ROAD.US SharesStats.PercentInsiders = 1.3299999999999998 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.6 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Closing price 83.23 USD; reporting-to-trading FX 1; FY2025 annual sales per share 50.791080199817735; price multiple 1.638673555918952. FY2025 cash earnings/share 2.024667723090948. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-05: $12.15 per share

- 2018-06: $13.17 per share

- 2018-07: $12.24 per share

- 2018-08: $12.15 per share

- 2018-09: $12.10 per share

- 2018-10: $9.04 per share

- 2018-11: $9.79 per share

- 2018-12: $8.83 per share

- 2019-01: $11.94 per share

- 2019-02: $12.36 per share

- 2019-03: $12.77 per share

- 2019-04: $13.10 per share

- 2019-05: $13.01 per share

- 2019-06: $15.02 per share

- 2019-07: $15.63 per share

- 2019-08: $16.49 per share

- 2019-09: $15.58 per share

- 2019-10: $17.12 per share

- 2019-11: $19.80 per share

- 2019-12: $16.87 per share

- 2020-01: $16.78 per share

- 2020-02: $17.01 per share

- 2020-03: $16.89 per share

- 2020-04: $18.33 per share

- 2020-05: $17.70 per share

- 2020-06: $17.76 per share

- 2020-07: $16.55 per share

- 2020-08: $18.69 per share

- 2020-09: $18.20 per share

- 2020-10: $20.38 per share

- 2020-11: $26.30 per share

- 2020-12: $29.11 per share

- 2021-01: $28.42 per share

- 2021-02: $28.94 per share

- 2021-03: $29.88 per share

- 2021-04: $31.73 per share

- 2021-05: $32.21 per share

- 2021-06: $31.40 per share

- 2021-07: $33.58 per share

- 2021-08: $33.47 per share

- 2021-09: $33.37 per share

- 2021-10: $35.61 per share

- 2021-11: $34.54 per share

- 2021-12: $29.41 per share

- 2022-01: $26.24 per share

- 2022-02: $26.76 per share

- 2022-03: $26.18 per share

- 2022-04: $25.81 per share

- 2022-05: $22.99 per share

- 2022-06: $20.94 per share

- 2022-07: $23.78 per share

- 2022-08: $29.26 per share

- 2022-09: $26.23 per share

- 2022-10: $31.14 per share

- 2022-11: $28.60 per share

- 2022-12: $26.69 per share

- 2023-01: $28.29 per share

- 2023-02: $27.05 per share

- 2023-03: $26.94 per share

- 2023-04: $25.94 per share

- 2023-05: $27.67 per share

- 2023-06: $31.39 per share

- 2023-07: $29.40 per share

- 2023-08: $34.75 per share

- 2023-09: $36.56 per share

- 2023-10: $38.45 per share

- 2023-11: $41.96 per share

- 2023-12: $43.52 per share

- 2024-01: $45.50 per share

- 2024-02: $48.08 per share

- 2024-03: $56.15 per share

- 2024-04: $51.64 per share

- 2024-05: $58.21 per share

- 2024-06: $55.21 per share

- 2024-07: $64.65 per share

- 2024-08: $65.98 per share

- 2024-09: $69.80 per share

- 2024-10: $78.73 per share

- 2024-11: $101.61 per share

- 2024-12: $88.46 per share

- 2025-01: $80.40 per share

- 2025-02: $72.56 per share

- 2025-03: $71.87 per share

- 2025-04: $82.14 per share

- 2025-05: $104.69 per share

- 2025-06: $106.28 per share

- 2025-07: $100.85 per share

- 2025-08: $119.90 per share

- 2025-09: $127.00 per share

- 2025-10: $114.35 per share

- 2025-11: $109.00 per share

- 2025-12: $108.55 per share

- 2026-01: $109.88 per share

- 2026-02: $134.37 per share

- 2026-03: $111.12 per share

- 2026-04: $123.66 per share

- 2026-05: $116.47 per share

- 2026-06: $118.77 per share

- 2026-07: $103.35 per share

- 2026-08: $106.20 per share

- 2026-09: $90.03 per share

- 2026-10: $83.23 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1718227/000162828025053871/road-20250930.htm); period 2025-09-30, filed 2025-11-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.