Construction PartnersROAD -0.98%92 Return-on-Tangible-Asset is 1.64% as of Mar. 2026, which is 76% below its 10-year median of 6.73. GuruFocus rates ROAD with a GF Score™ of 92/100 and a GF Value™ of $121.22 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,776 Construction companies, Construction Partners ranks better than 68.69% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Construction Partners's annualizedNet Income for the quarter that ended in Mar. 2026 was $37 Mil. Construction Partners's average total tangible assets for the quarter that ended in Mar. 2026 was $2,234 Mil. Therefore, Construction Partners's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 1.64%.
The historical rank and industry rank for Construction Partners's Return-on-Tangible-Asset or its related term are showing as below:
ROAD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.56 Med: 6.73 Max: 13.45
Current: 5.95
During the past 10 years, Construction Partners's highest Return-on-Tangible-Asset was 13.45%. The lowest was 2.56%. And the median was 6.73%.
ROAD's Return-on-Tangible-Asset is ranked better than 68.69% of 1776
companies
in the Construction industry
Industry Median: 3.01
vs ROAD: 5.95
Construction Partners (NAS:ROAD) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Construction Partners Return-on-Tangible-Asset Related Terms
Construction Partners Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Construction Partners's Return-on-Tangible-Asset 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.
Construction Partners Return-on-Tangible-Asset Chart
ROAD vs GVA, ACA, MYRG: Return-on-Tangible-Asset Comparison
For the Engineering & Construction subindustry, Construction Partners's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Construction Partners's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Construction Partners's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 1.64% mean?
Construction Partners (ROAD) has a Return-on-Tangible-Asset of 1.64% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Construction Partners and its competitors. This is 76% below median its historical median of 6.73. Over the past decade, Construction Partners' Return-on-Tangible-Asset has ranged from 2.56 to 13.45. According to the industry distribution chart, Construction Partners ranks #556 out of 1776 companies in the Construction industry, placing it in the top 31.3%.
Is Construction Partners' Return-on-Tangible-Asset too high?
Construction Partners' current Return-on-Tangible-Asset of 1.64% is 76% below median its 10-year median of 6.73. Over the past 10 years, this metric has ranged from a low of 2.56 to a high of 13.45. The Construction industry median Return-on-Tangible-Asset is 3.01. Construction Partners' value of 1.64% is 45.5% below this industry median. Based on the distribution chart, Construction Partners ranks #556 out of 1776 companies in the Construction industry, which is above 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' Return-on-Tangible-Asset compare to GVA and ACA?
According to the Construction industry distribution chart, Construction Partners ranks #556 out of 1776 companies for Return-on-Tangible-Asset. This puts Construction Partners in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.01. Construction Partners' value of 1.64% is 45.5% below this benchmark. Historically, Construction Partners' own Return-on-Tangible-Asset has ranged from 2.56 to 13.45 over the past decade. While the company's 10-year median is 6.73 vs. the industry median of 3.01, 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 Return-on-Tangible-Asset for a Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.01, based on 1,776 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Construction Partners's current Return-on-Tangible-Asset of 1.64% is 45.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Construction Partners and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Construction Partners's current Return-on-Tangible-Asset is 1.64%, which is 76% below median its own 10-year median of 6.73. 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 $121.22, compared to a current price of $107.91 — trading 11% below its estimated fair value. The current Return-on-Tangible-Asset is 1.64%, which is 76% below median its 10-year median of 6.73 and 45.5% below the Construction industry median of 3.01. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Construction Partners (ROAD), the current Return-on-Tangible-Asset is 1.64% 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 $107.91 is trading 11% below its estimated GF Value™ of $121.22.
GuruFocus considers Construction Partners to be Modestly Undervalued.
Key valuation signals for ROAD:
Return-on-Tangible-Asset: 1.64% (76% below median its 10-year median of 6.73)
GF Value™: $121.22 vs. price of $107.91 (11% below fair value)
Industry Position: 45.5% below the Construction median (#556 of 1776)
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
Get the complete analysis for ROAD
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ROAD has been successfully added to your 
