Construction Partners: It's Time To Correct A Big Mistake (Upgrade)

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummaryConstruction Partners (ROAD) is upgraded to a soft ‘buy’ as growth and execution outpace prior valuation concerns.ROAD nearly doubled revenue from 2023–2025 and aggressively expanded via $1.69B in acquisitions, fueling significant EBITDA and cash flow growth.Management targets $6.03B revenue, 17% EBITDA margin, and net leverage of 1.5–2.5 by 2030, focusing on high-growth Sunbelt markets.Even if ROAD only achieves average peer multiples by 2030, annualized returns could match or exceed the market, presenting a favorable risk-reward.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Gary Yeowell/DigitalVision via Getty Images I have a very good track record when it comes to the market. But nobody's perfect. One of my biggest flaws as an investor is that I sometimes do not give enough weight to the prospectThis article was written byDaniel Jones36.9K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.