Construction PartnersROAD -1.73%92 Cash Ratio is 0.14 as of Mar. 2026, which is 48% below its 10-year median of 0.27. GuruFocus rates ROAD with a GF Score™ of 92/100 and a GF Value™ of $121.55 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,753 Construction companies, Construction Partners ranks worse than 75.3% on this metric.
Construction Partners has a Cash Ratio of 0.14. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Construction Partners's Cash Ratio or its related term are showing as below:
ROAD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.13 Med: 0.27 Max: 1.09
Current: 0.14
During the past 10 years, Construction Partners's highest Cash Ratio was 1.09. The lowest was 0.13. And the median was 0.27.
ROAD's Cash Ratio is ranked worse than 75.3% of 1753
companies
in the Construction industry
Industry Median: 0.35
vs ROAD: 0.14
Construction Partners (NAS:ROAD) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Engineering & Construction subindustry, Construction Partners's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Construction Partners Cash Ratio vs Construction Industry
For the Construction industry and Industrials sector, Construction Partners's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Construction Partners's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Construction Partners (ROAD) has a Cash Ratio of 0.14 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Construction Partners and its competitors. This is 48% below median its historical median of 0.27. Over the past decade, Construction Partners' Cash Ratio has ranged from 0.13 to 1.09. According to the industry distribution chart, Construction Partners ranks #1320 out of 1753 companies in the Construction industry, placing it in the top 75.3%.
Is Construction Partners' Cash Ratio too high?
Construction Partners' current Cash Ratio of 0.14 is 48% below median its 10-year median of 0.27. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 1.09. The Construction industry median Cash Ratio is 0.35. Construction Partners' value of 0.14 is 60% below this industry median. Based on the distribution chart, Construction Partners ranks #1320 out of 1753 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Construction Partners has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Construction Partners' Cash Ratio compare to GVA and ACA?
According to the Construction industry distribution chart, Construction Partners ranks #1320 out of 1753 companies for Cash Ratio. This places Construction Partners in the lower half of its industry. The industry median Cash Ratio is 0.35. Construction Partners' value of 0.14 is 60% below this benchmark. Historically, Construction Partners' own Cash Ratio has ranged from 0.13 to 1.09 over the past decade. While the company's 10-year median is 0.27 vs. the industry median of 0.35, Construction Partners has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Construction company?
The median Cash Ratio among Construction companies is 0.35, based on 1,753 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Construction Partners's current Cash Ratio of 0.14 is 60% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Construction Partners and its competitors. For the Construction industry, the median Cash Ratio is 0.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Construction Partners's current Cash Ratio is 0.14, which is 48% below median its own 10-year median of 0.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Construction Partners stock overvalued right now?
Based on GuruFocus' analysis, Construction Partners (ROAD) is currently considered Modestly Undervalued. The stock's GF Value™ is $121.55, compared to a current price of $101.90 — trading 16.2% below its estimated fair value. The current Cash Ratio is 0.14, which is 48% below median its 10-year median of 0.27 and 60% below the Construction industry median of 0.35. Construction Partners' overall GF Score™ is 92/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Construction Partners (ROAD), the current Cash Ratio is 0.14 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Construction Partners (ROAD) Overvalued in 2026?
Based on GuruFocus' analysis, Construction Partners stock appears to be undervalued.
The current stock price of $101.90 is trading 16.2% below its estimated GF Value™ of $121.55.
GuruFocus considers Construction Partners to be Modestly Undervalued.
Key valuation signals for ROAD:
Cash Ratio: 0.14 (48% below median its 10-year median of 0.27)
GF Value™: $121.55 vs. price of $101.90 (16.2% below fair value)
Industry Position: 60% below the Construction median (#1320 of 1753)
No single metric tells the full story. See the ROAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Construction Partners Inc operates as a civil infrastructure company. It specializes in the construction and maintenance of roadways. The company through its subsidiaries, provides various products and services to both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports, and commercial and residential developments. Its operations consist of manufacturing and distributing hot mix asphalt, paving activities, including the construction of roadway base layers and application of asphalt pavement, site development, including the installation of utility and drainage systems, and others. The company has a single segment which predominantly consists of infrastructure and road construction, and operates across various states in the United States.
92GF Score
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