Stock

Construction Partners

ROAD
64
Engineering & Construction · Industrials
Price
$82.71
-0.52 (-0.62%)
Market Cap
$4.68B
Exchange
NASDAQ
Winston Score
64
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 18, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Good
16/30
Growth
Exceptional
17/20
Cash Flow
Strong
7/10
Stability
Good
5/10
Valuation
Good
6/10
Ownership
Good
10/15
Dividends
Not counted
n/a

61 of 95 counted points = Winston Score 64. Pillars marked n/a do not apply to this company and are left out of the total.

Share count rising — dilution

+6.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 51.8M (2021) → 55.4M (2025)

§Winston Score History

The full picture

Construction Partners builds and fixes roads, highways, and other paved surfaces across the southeastern United States. The company does everything from laying asphalt to managing drainage and traffic systems, mostly for state and local governments that need to maintain or expand their road networks. It is one of the larger regional road construction companies in the Sun Belt.

The company earns money by winning government contracts, completing the work, and getting paid per project. It operates mainly in states like Alabama, Florida, Georgia, and the Carolinas, where population growth is driving steady demand for new and improved roads. Construction Partners has grown partly by acquiring smaller local contractors, which gives it more equipment, crews, and regional relationships — a meaningful edge over smaller rivals. The main risk is that government infrastructure budgets can tighten, and rising material costs like asphalt and fuel can squeeze the already thin profit margins typical in this industry.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+28.2% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+33.8% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

16.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$95M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

Construction Partners is growing revenue at 28% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
16.7%
Thin — 16.7% gross margin
Profit after running costs
Operating Margin
10.9%
Modest — 10.9% operating margin
Return on the money invested
ROCE
25.9%
Exceptional — 25.9% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+41.9%
Fast-growing sales (+41.9% YoY)
Profit growth
EPS YoY
>+1,000%
Earnings growing fast (>+1,000% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
248%
Turns 248% of profit into real cash
Spare cash per sale
FCF Margin
5.0%
Thin free cash flow (5.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.14
Conservative — low debt load (0.14)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
32.3x
Pricey — P/E 32.3

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+7.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (32.3 → 24.4)

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Dividends

Not applicable for this business.
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