ROAD - Construction Partners: Tailwinds Fully Reflected Calculus Skewed To Downside

2024-07-17 07:08:02 ET

Summary

• Construction Partners, Inc. specializes in civil infrastructure construction and maintenance in the southeast US.
• The company has benefitted from recent infrastructure funding programs, leading to significant growth in sales and earnings.
• Despite strong tailwinds, the company's valuation appears stretched, with limited economic substance to support current multiples.

Investment thesis

Construction Partners, Inc. ( ROAD ) is a civil infrastructure company specializing in the building and maintenance of transportation networks. Its strategically located HMA plants and select material deposits provide construction products and services to both public and private infrastructure projects. It is in the business of building and maintaining highways, roads, bridges, airports, and commercial and residential sites in the southeast US....

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