Construction Partners Inc. Class A Common Stock (ROAD)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I see Construction Partners as a real business doing necessary work: roads, bridges, and asphalt in eight states. The record shows momentum. In fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $999.4 million and net income was $59.6 million, or $1.06 diluted EPS, versus $779.3 million, $44.0 million, and $0.79 in fiscal Q3 2025. For fiscal 2025, the year ended 2025-09-30, revenue was $2.8 billion with net income of $101.8 million, up from fiscal 2024's $1.8 billion and $68.9 million and fiscal 2023's $1.6 billion and $49.0 million. FairStock's Lynch category calls it a FAST GROWER, with 20.4% annual profit growth and 29.1% revenue growth over five years. The Piotroski F-Score is 9/9, and free cash flow is $175.6 million, a 3.6% FCF yield at the 2026-10-13 close. But quality and price matter. ROCE is only 6.33%, suggesting limited capital efficiency and a narrow moat; construction is competitive despite local asphalt advantages. Debt/equity is 1.82, and Altman Z-Score is 1.82—hardly fortress-like. At $86.33, FairStock puts P/E at 33.85, P/B at 4.68, EV/EBITDA at 14.06, and Graham Number at $32.52, leaving a -165.47% margin of safety. PEG is 0.29, which is attractive only if high growth persists. In short, the business is improving and the growth is real, but the price already assumes much of that success. I would want a wider discount before calling it a Graham-style bargain.

In plain English: Construction Partners builds and maintains roads, bridges, and other civil infrastructure, mainly in the southern United States. Its sales and profits have been growing quickly, and cash flow is positive, but it uses a lot of borrowed money. At the recent price, the shares look expensive compared with the company's earnings and assets, even though they are near the low end of their 52-week range.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer