Construction PartnersROAD -0.67%92 Debt-to-EBITDA is 5.50 as of Mar. 2026, which is 218% above its 10-year median of 1.73. 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 1,401 Construction companies, Construction Partners ranks worse than 68.67% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Construction Partners's Debt-to-EBITDA or its related term are showing as below:
ROAD'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.56 Med: 1.73 Max: 4.53
Current: 4.17
During the past 10 years, the highest Debt-to-EBITDA Ratio of Construction Partners was 4.53. The lowest was 0.56. And the median was 1.73.
ROAD's Debt-to-EBITDA is ranked worse than 68.67% of 1401
companies
in the Construction industry
Industry Median: 2.19
vs ROAD: 4.17
Construction Partners (NAS:ROAD) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Construction Partners Debt-to-EBITDA Related Terms
Construction Partners Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Construction Partners's Debt-to-EBITDA can be seen below:
* 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 Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Construction Industry
For the Construction industry and Industrials sector, Construction Partners's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Construction Partners's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Construction Partners (ROAD) has a Debt-to-EBITDA of 5.50 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Construction Partners. This is 218% above median its historical median of 1.73. Over the past decade, Construction Partners' Debt-to-EBITDA has ranged from 0.56 to 4.53. According to the industry distribution chart, Construction Partners ranks #962 out of 1401 companies in the Construction industry, placing it in the top 68.7%.
Is Construction Partners' Debt-to-EBITDA too high?
Construction Partners' current Debt-to-EBITDA of 5.50 is 218% above median its 10-year median of 1.73. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 4.53. The Construction industry median Debt-to-EBITDA is 2.19. Construction Partners' value of 5.50 is 151.1% above this industry median. Based on the distribution chart, Construction Partners ranks #962 out of 1401 companies in the Construction industry, which is below the industry midpoint. 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' Debt-to-EBITDA compare to GVA and ACA?
According to the Construction industry distribution chart, Construction Partners ranks #962 out of 1401 companies for Debt-to-EBITDA. This places Construction Partners in the lower half of its industry. The industry median Debt-to-EBITDA is 2.19. Construction Partners' value of 5.50 is 151.1% above this benchmark. Historically, Construction Partners' own Debt-to-EBITDA has ranged from 0.56 to 4.53 over the past decade. While the company's 10-year median is 1.73 vs. the industry median of 2.19, Construction Partners has consistently been above 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 Debt-to-EBITDA for a Construction company?
The median Debt-to-EBITDA among Construction companies is 2.19, based on 1,401 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Construction Partners's current Debt-to-EBITDA of 5.50 is 151.1% above 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Construction Partners. For the Construction industry, the median Debt-to-EBITDA is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Construction Partners's current Debt-to-EBITDA is 5.50, which is 218% above median its own 10-year median of 1.73. 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 $103.01 — trading 15.3% below its estimated fair value. The current Debt-to-EBITDA is 5.50, which is 218% above median its 10-year median of 1.73 and 151.1% above the Construction industry median of 2.19. 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 Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Construction Partners (ROAD), the current Debt-to-EBITDA is 5.50 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 $103.01 is trading 15.3% below its estimated GF Value™ of $121.55.
GuruFocus considers Construction Partners to be Modestly Undervalued.
Key valuation signals for ROAD:
Debt-to-EBITDA: 5.50 (218% above median its 10-year median of 1.73)
GF Value™: $121.55 vs. price of $103.01 (15.3% below fair value)
Industry Position: 151.1% above the Construction median (#962 of 1401)
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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