
Construction Partners (ROAD) Stock Forecast & Price Target
Construction Partners (ROAD) Analyst Ratings
Bulls say
Construction Partners Inc. has reported a record backlog of $3.0 billion at the end of F4Q, reflecting a significant year-over-year increase of 55% and ongoing success in securing bookings in key markets. The company has experienced substantial financial growth, with gross profit and EBIT rising dramatically by 90% and 120% year-over-year, respectively, indicating strong operational efficiency and demand within the civil infrastructure sector. Additionally, the company has a clear strategic goal to reduce net debt to EBITDA from 3.1x to 2.5x by late 2026, positioning itself for sustained growth amidst a fragmented market landscape.
Bears say
Construction Partners Inc. has a financial structure that is heavily impacted by external factors, particularly weather and seasonality, which can lead to increased uncertainty in future financial performance and potentially adverse impacts on profit margins. The company operates with a labor-centric cost structure, where approximately 20% of total costs are attributed to labor, posing a risk to margin stability and growth due to current tight labor market conditions. Furthermore, the potential consequences of acquisition missteps or failures in integration processes could significantly harm the company's overall financial results.
This aggregate rating is based on analysts' research of Construction Partners and is not a guaranteed prediction by Public.com or investment advice.
Construction Partners (ROAD) Analyst Forecast & Price Prediction
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