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ROAD (Construction Partners) Return-on-Tangible-Equity : 54.69% (As of Mar. 2025)


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What is Construction Partners Return-on-Tangible-Equity?

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. 2025 was $17 Mil. Construction Partners's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $31 Mil. Therefore, Construction Partners's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 54.69%.

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: 15.28   Max: 29.6
Current: 29.6

During the past 9 years, Construction Partners's highest Return-on-Tangible-Equity was 29.60%. The lowest was 6.16%. And the median was 15.28%.

ROAD's Return-on-Tangible-Equity is ranked better than
83.3% of 1677 companies
in the Construction industry
Industry Median: 7.71 vs ROAD: 29.60

Construction Partners Return-on-Tangible-Equity Historical Data

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.

* Premium members only.

Construction Partners Return-on-Tangible-Equity Chart

Construction Partners Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only 12.65 6.16 6.79 15.12 20.91

Construction Partners Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.39 37.82 35.89 -6.10 54.69

Competitive Comparison of Construction Partners's Return-on-Tangible-Equity

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's Return-on-Tangible-Equity Distribution in the 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.


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Construction Partners Return-on-Tangible-Equity Calculation

Construction Partners's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2024 )  (A: Sep. 2023 )(A: Sep. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2024 )  (A: Sep. 2023 )(A: Sep. 2024 )
=68.935/( (337.784+321.535 )/ 2 )
=68.935/329.6595
=20.91 %

Construction Partners's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=16.86/( (78.742+-17.087)/ 2 )
=16.86/30.8275
=54.69 %

* 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. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


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

Thank you for viewing the detailed overview of Construction Partners's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Construction Partners Business Description

Traded in Other Exchanges
Address
290 Healthwest Drive, Suite 2, Dothan, AL, USA, 36303
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.
Executives
Robert P. Flowers officer: Senior Vice President 3372 CAPITAL CIRCLE NE, TALLAHASSEE FL 32308
Fleming Ned N. Iv other: Member of 10% owner group 5420 LBJ FREEWAY, SUITE 1000, DALLAS TX 75240
Smith Fred Julius Iii officer: Senior Vice President 701 CORPORATE CENTER DRIVE, SUITE 101, RALEIGH TX 27607
John L Harper officer: Senior Vice President 170 EAST MAIN STREET, DOTHAN AL 36301
Todd Keith Andrews officer: Chief Accounting Officer 290 HEALTHWEST DRIVE, SUITE 2, DOTHAN AL 36303
Charles E Owens director, officer: See Remarks 290 HEALTHWEST DRIVE, SUITE 2, DOTHAN AL 36303
Suntx Capital Ii Management Corp. director, 10 percent owner 5420 LBJ FREEWAY, SUITE 1000, DALLAS TX 75240
Mark R Matteson director, 10 percent owner 290 HEALTHWEST DRIVE, SUITE 2, DOTHAN AL 36303
Stefan L Shaffer director 290 HEALTHWEST DRIVE, SUITE 2, DOTHAN AL 36303
Noreen E Skelly director 8214 WESTCHESTER DRIVE, SUITE 400, DALLAS TX 75225
Craig Jennings director, 10 percent owner 5204 LAKECREET CT., PLANO TX 75093
Suntx Cpi Capital Management Corp. director, 10 percent owner 5420 LBJ FREEWAY, SUITE 1000, DALLAS TX 75240
Ned N. Fleming, Iv 2013 Trust other: Member of 10% owner group 5420 LBJ FREEWAY, SUITE 1000, DALLAS TX 75240
Suntx Capital Partners Ii Lp director, 10 percent owner TWO LINCOLN CENTRE, 5420 LBJ FREEWAY, SUITE 1000, DALLAS TX 75240
Suntx Capital Partners Ii Dutch Investors Lp director, 10 percent owner TWO LINCOLN CENTRE, 5420 LBJ FREEWAY, SUITE 1000, DALLAS TX 75240