Construction PartnersROAD -2.35%91 Gross Margin % is 12.85% as of Mar. 2026, which is 11% below its 10-year median of 14.40. GuruFocus rates ROAD with a GF Score™ of 91/100 and a GF Value™ of $120.83 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,724 Construction companies, Construction Partners ranks worse than 62.82% on this metric.
ROAD's Gross Margin % is ranked worse than 62.82% of 1724
companies
in the Construction industry
Industry Median: 20.705
vs ROAD: 15.70
Construction Partners had a gross margin of 12.85% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Construction Partners was 1.10% per year.
Construction Partners (NAS:ROAD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Construction Partners had a gross margin of 12.85% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Construction Partners Gross Margin % Related Terms
Construction Partners Gross Margin % Historical Data
* Premium members only.
The historical data trend for Construction Partners's Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Construction Partners's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Construction Partners's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Construction Partners (ROAD) has a Gross Margin % of 12.85% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Construction Partners and its competitors. This is 11% below median its historical median of 14.40. Over the past decade, Construction Partners' Gross Margin % has ranged from 10.70 to 16.01. According to the industry distribution chart, Construction Partners ranks #1083 out of 1724 companies in the Construction industry, placing it in the top 62.8%.
Is Construction Partners' Gross Margin % too high?
Construction Partners' current Gross Margin % of 12.85% is 11% below median its 10-year median of 14.40. Over the past 10 years, this metric has ranged from a low of 10.70 to a high of 16.01. The Construction industry median Gross Margin % is 20.71. Construction Partners' value of 12.85% is 37.9% below this industry median. Based on the distribution chart, Construction Partners ranks #1083 out of 1724 companies in the Construction industry, which is below the industry midpoint. Overall, Construction Partners has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Construction Partners' Gross Margin % compare to LGN and FLR?
According to the Construction industry distribution chart, Construction Partners ranks #1083 out of 1724 companies for Gross Margin %. This places Construction Partners in the lower half of its industry. The industry median Gross Margin % is 20.71. Construction Partners' value of 12.85% is 37.9% below this benchmark. Historically, Construction Partners' own Gross Margin % has ranged from 10.70 to 16.01 over the past decade. While the company's 10-year median is 14.40 vs. the industry median of 20.71, 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 Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Construction Partners's current Gross Margin % of 12.85% is 37.9% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Construction Partners and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Construction Partners's current Gross Margin % is 12.85%, which is 11% below median its own 10-year median of 14.40. 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 Fairly Valued. The stock's GF Value™ is $120.83, compared to a current price of $122.53 — trading 1.4% above its estimated fair value. The current Gross Margin % is 12.85%, which is 11% below median its 10-year median of 14.40 and 37.9% below the Construction industry median of 20.71. Construction Partners' overall GF Score™ is 91/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Construction Partners (ROAD), the current Gross Margin % is 12.85% 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 overvalued.
The current stock price of $122.53 is trading 1.4% above its estimated GF Value™ of $120.83.
GuruFocus considers Construction Partners to be Fairly Valued.
Key valuation signals for ROAD:
Gross Margin %: 12.85% (11% below median its 10-year median of 14.40)
GF Value™: $120.83 vs. price of $122.53 (1.4% above fair value)
Industry Position: 37.9% below the Construction median (#1083 of 1724)
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.
91GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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