Construction Partners Announces 10.9% Increase in Total Revenue for Third Quarter of FY2023
August 13, 2023
☀️Earnings Overview
CONSTRUCTION PARTNERS ($NASDAQ:ROAD) reported total revenue of USD 421.9 million for the third quarter of FY2023 on August 2 2023, indicating a 10.9% increase compared to the same quarter in the previous year. Additionally, net income for the quarter totaled USD 21.7 million, a remarkable 78.1% year-over-year growth.
Analysis
GoodWhale conducted an analysis of CONSTRUCTION PARTNERS financials and based on the Star Chart classification of the company as ‘cheetah’, we can conclude that the company achieved high levels of revenue or earnings growth but is considered to be less stable due to its lower profitability. This might make it an attractive prospect for investors who specialize in taking on higher risks. When looking at the health score of CONSTRUCTION PARTNERS, the company was given an 8/10 when it comes to their cashflows and debt; indicating that they are capable to pay off debt and fund future operations. Moreover, CONSTRUCTION PARTNERS is strong when it comes to growth, medium in terms of assets, profitability and weak in dividend; which may be attractive for investors that are looking for a higher return on their investment. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Construction Partners. More…
| Total Revenues | Net Income | Net Margin |
| 1.48k | 31.2 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Construction Partners. More…
| Operations | Investing | Financing |
| 120.76 | -157.36 | 65.36 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Construction Partners. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.18k | 702.74 | 9.12 |
Key Ratios Snapshot
Some of the financial key ratios for Construction Partners are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.9% | -0.6% | 4.0% |
| FCF Margin | ROE | ROA |
| 1.7% | 7.9% | 3.1% |
Peers
The company has been in business for over 20 years and has a solid reputation in the industry. Construction Partners Inc. is headquartered in the United States and has operations in Canada, Europe, and Asia. The company’s competitors include Tan Ky Construction And Real Estate Trading Corp, Chiangmai Rimdoi PCL, Hebei Construction Group Corp Ltd, and other smaller construction companies.
– Tan Ky Construction And Real Estate Trading Corp ($HNX:TKC)
Chiangmai Rimdoi PCL is a Thailand-based company engaged in the production and distribution of animal feed products. The Company’s products include pig feed, chicken feed, shrimp feed and fish feed. It also provides services for the farming of pigs, chickens, shrimp and fish.
– Chiangmai Rimdoi PCL ($SET:CRD)
Hebei Construction Group Corp Ltd is a Chinese state-owned enterprise that engages in the design, construction, and operation of infrastructure projects. The company has a market cap of 1.22B as of 2022 and a Return on Equity of -2.48%. Hebei Construction Group Corp Ltd is involved in the construction of highways, railways, bridges, tunnels, airports, and other infrastructure projects.
Summary
CONSTRUCTION PARTNERS reported strong financial results for the third quarter of their FY2023, with a 10.9% increase in total revenue to USD 421.9 million and a 78.1% improvement in net income to USD 21.7 million. This positive performance was reflected in the stock price, which increased on the same day. Investors should take note of this strong performance as CONSTRUCTION PARTNERS is positioned to benefit from favorable market conditions. Going forward, investors should keep an eye on the company’s revenue growth, operating margins, and cash flow to get a better sense of its long-term viability as an investment.
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