Construction PartnersROAD -2.35%91 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. 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 1,705 Construction companies, Construction Partners ranks better than 99.94% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Construction Partners's annualized net income for the quarter that ended in Mar. 2026 was $37 Mil. Construction Partners's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-191 Mil. Therefore, Construction Partners's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Construction Partners's Return-on-Tangible-Equity or its related term are showing as below:
ROAD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.16 Med: 16.56 Max: 96.49
Current: Negative Tangible Equity
During the past 10 years, Construction Partners's highest Return-on-Tangible-Equity was 96.49%. The lowest was 6.16%. And the median was 16.56%.
ROAD's Return-on-Tangible-Equity is ranked better than 99.94% of 1705
companies
in the Construction industry
Industry Median: 8.25
vs ROAD: Negative Tangible Equity
Construction Partners (NAS:ROAD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Construction Partners Return-on-Tangible-Equity Related Terms
Construction Partners Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Construction Partners's Return-on-Tangible-Equity 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-Equity Chart
ROAD vs GVA, ACA, MYRG: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Construction Partners's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Construction Industry
For the Construction industry and Industrials sector, Construction Partners's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Construction Partners's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Construction Partners (ROAD) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Construction Partners and its competitors. Over the past decade, Construction Partners' Return-on-Tangible-Equity has ranged from 6.16 to 96.49. According to the industry distribution chart, Construction Partners ranks #1 out of 1705 companies in the Construction industry, placing it in the top 0.099999999999994%.
Is Construction Partners' Return-on-Tangible-Equity too high?
Construction Partners' current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 6.16 to a high of 96.49. Based on the distribution chart, Construction Partners ranks #1 out of 1705 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. 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' Return-on-Tangible-Equity compare to GVA and ACA?
According to the Construction industry distribution chart, Construction Partners ranks #1 out of 1705 companies for Return-on-Tangible-Equity. This places Construction Partners in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. Historically, Construction Partners' own Return-on-Tangible-Equity has ranged from 6.16 to 96.49 over the past decade. 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-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Construction Partners and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Construction Partners's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Construction Partners (ROAD), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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.
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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