Latest Ratios: P/E Ratio 58.7x · EV/EBITDA 19.7x · ROE 13.7%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.1B | $7.0B | $3.7B | $1.9B | $1.4B | $1.7B | $940M | $801M | $556M | — | — |
| Enterprise Value | $7.6B | $8.6B | $4.1B | $2.3B | $1.7B | $1.9B | $891M | $771M | $519M | — | — |
| P/E Ratio → | 58.65 | 69.02 | 53.28 | 38.89 | 63.98 | 85.56 | 23.33 | 18.55 | 10.90 | — | — |
| P/S Ratio | 2.17 | 2.50 | 2.01 | 1.22 | 1.05 | 1.90 | 1.20 | 1.02 | 0.82 | — | — |
| P/B Ratio | 6.55 | 7.71 | 6.40 | 3.70 | 2.99 | 4.23 | 2.44 | 2.33 | 1.86 | — | — |
| P/FCF | 39.77 | 45.85 | 30.29 | 32.19 | — | — | 17.87 | 62.62 | 23.83 | — | — |
| P/OCF | 20.94 | 24.14 | 17.55 | 12.16 | 82.61 | 35.62 | 8.94 | 14.50 | 8.40 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.05 | 2.27 | 1.44 | 1.32 | 2.08 | 1.13 | 0.98 | 0.76 | — | — |
| EV / EBITDA | 19.67 | 22.07 | 20.60 | 14.88 | 17.95 | 23.55 | 9.57 | 8.89 | 7.45 | — | — |
| EV / EBIT | 31.83 | 38.09 | 34.06 | 24.75 | 46.57 | 61.22 | 16.04 | 13.39 | 8.47 | — | — |
| EV / FCF | — | 55.85 | 34.24 | 37.97 | — | — | 16.94 | 60.23 | 22.27 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.6% | 15.6% | 14.2% | 12.7% | 10.5% | 12.8% | 15.6% | 15.1% | 14.6% | 16.0% | 13.8% |
| Operating Margin | 8.5% | 8.5% | 5.9% | 4.6% | 2.3% | 3.4% | 6.8% | 7.1% | 6.5% | 7.6% | 6.4% |
| Net Profit Margin | 3.6% | 3.6% | 3.8% | 3.1% | 1.6% | 2.2% | 5.1% | 5.5% | 7.5% | 4.6% | 4.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.7% | 13.7% | 12.6% | 10.1% | 4.9% | 5.1% | 11.1% | 13.4% | 22.5% | 16.9% | 14.1% |
| ROA | 4.3% | 4.3% | 5.0% | 4.2% | 2.2% | 2.8% | 6.9% | 8.4% | 12.3% | 8.1% | 6.9% |
| ROIC | 10.3% | 10.3% | 8.5% | 6.5% | 3.2% | 5.0% | 12.4% | 14.4% | 15.0% | 18.6% | 15.6% |
| ROCE | 12.6% | 12.6% | 10.3% | 8.0% | 3.9% | 5.4% | 12.0% | 14.5% | 15.4% | 19.9% | 15.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.85 | 1.85 | 0.96 | 0.76 | 0.86 | 0.55 | 0.26 | 0.15 | 0.21 | 0.38 | 0.39 |
| Debt / EBITDA | 4.35 | 4.35 | 2.75 | 2.58 | 4.07 | 2.77 | 1.07 | 0.58 | 0.90 | 0.89 | 1.09 |
| Net Debt / Equity | — | 1.68 | 0.83 | 0.66 | 0.78 | 0.41 | -0.13 | -0.09 | -0.12 | 0.19 | 0.06 |
| Net Debt / EBITDA | 3.95 | 3.95 | 2.38 | 2.26 | 3.70 | 2.06 | -0.52 | -0.35 | -0.52 | 0.46 | 0.18 |
| Debt / FCF | — | 10.00 | 3.95 | 5.77 | — | — | -0.93 | -2.39 | -1.55 | 1.31 | 0.37 |
| Interest Coverage | 2.49 | 2.49 | 4.10 | 3.55 | 4.31 | 12.84 | 17.85 | 30.93 | 48.29 | 11.30 | 7.98 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.61 | 1.61 | 1.54 | 1.70 | 1.84 | 1.90 | 2.44 | 2.18 | 1.99 | 1.53 | 1.77 |
| Quick Ratio | 1.34 | 1.34 | 1.26 | 1.39 | 1.52 | 1.56 | 2.16 | 1.92 | 1.81 | 1.38 | 1.64 |
| Cash Ratio | 0.27 | 0.27 | 0.20 | 0.17 | 0.16 | 0.36 | 1.09 | 0.63 | 0.74 | 0.24 | 0.51 |
| Asset Turnover | — | 0.87 | 1.18 | 1.28 | 1.19 | 1.13 | 1.25 | 1.47 | 1.37 | 1.73 | 1.70 |
| Inventory Turnover | 15.30 | 15.30 | 14.67 | 16.24 | 15.70 | 14.76 | 17.21 | 19.40 | 23.64 | 27.29 | 35.29 |
| Days Sales Outstanding | — | 77.25 | 75.40 | 77.27 | 82.57 | 72.62 | 64.87 | 74.38 | 73.79 | 80.67 | 74.20 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | 3.9% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | 120.2% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.7% | 1.4% | 1.9% | 2.6% | 1.6% | 1.2% | 4.3% | 5.4% | 9.2% | — | — |
| FCF Yield | 2.5% | 2.2% | 3.3% | 3.1% | — | — | 5.6% | 1.6% | 4.2% | — | — |
| Buyback Yield | 0.4% | 0.3% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.5% | — | — |
| Total Shareholder Yield | 0.4% | 0.3% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 4.4% | — | — |
| Shares Outstanding | — | $55M | $53M | $52M | $52M | $52M | $52M | $51M | $46M | $51M | $51M |
Acquisition integration and leverage
As reported in recent financial filings, ROAD trades at a forward P/E of 40.78, which, when compared to the broader industrial sector, suggests that investors are pricing in significant future earnings expansion driven by the company's rapid, acquisition-heavy growth strategy in the Southeastern infrastructure market.
The current P/E of 66.78 and PEG ratio of 3.57 indicate that the market is assigning a substantial growth premium to the stock, likely anticipating that the recent surge in revenue will eventually translate into sustainable margin expansion. However, this valuation appears vulnerable if the company fails to demonstrate that its inorganic growth can be converted into consistent, high-quality earnings rather than just top-line volume.
Based on the company's reported figures, ROIC has remained suppressed, fluctuating between 0.2% and 3.5% over the last ten quarters, which indicates that the rapid accumulation of goodwill and fixed assets is currently outpacing the company's ability to generate efficient returns on its invested capital.
The low ROIC suggests that the company's 'buy-and-build' strategy is currently in a capital-intensive phase where the integration of new assets is weighing on overall efficiency. Investors should monitor whether these returns begin to trend upward as the company achieves greater density and operational synergies within its newly acquired regional footprints.
According to recent quarterly data, the cash conversion cycle has fluctuated between 43 and 63 days, reflecting the inherent challenges of managing working capital across a rapidly expanding network of paving projects and asphalt plants in the competitive Southeastern construction landscape.
The variability in DSO and DIO suggests that the company's ability to manage its receivables and inventory is being tested by its aggressive pace of expansion. A sustained increase in the CCC would imply that the company is becoming less efficient at converting its project-based revenue into cash, which warrants further investigation into its billing and collection processes.
As indicated in financial statements, the debt-to-equity ratio has climbed from 0.88 in 2024Q1 to 1.88 in 2026Q2, signaling that the company is increasingly relying on debt financing to fund its aggressive acquisition strategy, which may limit its future financial flexibility in a volatile interest rate environment.
While the interest coverage ratio has shown volatility, the upward trend in debt-to-equity suggests that the company's balance sheet is becoming more sensitive to debt service obligations. This shift in capital structure warrants close monitoring, as any downturn in infrastructure spending could leave the company with less room to maneuver compared to its more conservatively capitalized peers.
The P/E ratio is frequently misapplied to ROAD, as it obscures the company's true earning power by failing to account for the significant non-cash depreciation and amortization charges associated with its heavy asphalt plant infrastructure and the accounting nuances of percentage-of-completion revenue recognition.
Investors should prioritize EV/EBITDA or P/FCF over P/E, as these metrics better capture the cash-generating capacity of the business while neutralizing the impact of capital structure and non-cash accounting adjustments. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation, particularly given the high level of acquisition-related goodwill on the balance sheet.
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Quick answers to the most common questions about buying ROAD stock.
Construction Partners, Inc.'s current P/E ratio is 58.7x. The historical average is 45.4x. This places it at the 63th percentile of its historical range.
Construction Partners, Inc.'s current EV/EBITDA is 19.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.6x.
Construction Partners, Inc.'s return on equity (ROE) is 13.7%. The historical average is 12.4%.
Based on historical data, Construction Partners, Inc. is trading at a P/E of 58.7x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Construction Partners, Inc. has 15.6% gross margin and 8.5% operating margin.
Construction Partners, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.