Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Construction Partners's 5-Year RORE % for the quarter that ended in Mar. 2026 was 38.19%.
The industry rank for Construction Partners's 5-Year RORE % or its related term are showing as below:
ROAD's 5-Year RORE % is ranked better than 77.74% of 1496
companies
in the Construction industry
Industry Median: 6.39
vs ROAD: 38.19
Construction Partners (NAS:ROAD) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Construction Partners 5-Year RORE % Related Terms
Construction Partners 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Construction Partners's 5-Year RORE % 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 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Construction Industry
For the Construction industry and Industrials sector, Construction Partners's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Construction Partners's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Construction Partners (ROAD) has a 5-Year RORE % of 38.19 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Construction Partners and its competitors. According to the industry distribution chart, Construction Partners ranks #333 out of 1496 companies in the Construction industry, placing it in the top 22.3%.
Is Construction Partners' 5-Year RORE % too high?
Construction Partners' current 5-Year RORE % is 38.19. The Construction industry median 5-Year RORE % is 6.39. Construction Partners' value of 38.19 is 497.7% above this industry median. Based on the distribution chart, Construction Partners ranks #333 out of 1496 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' 5-Year RORE % compare to GVA and ACA?
According to the Construction industry distribution chart, Construction Partners ranks #333 out of 1496 companies for 5-Year RORE %. This places Construction Partners in the top 22% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 6.39. Construction Partners' value of 38.19 is 497.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Construction company?
The median 5-Year RORE % among Construction companies is 6.39, based on 1,496 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Construction Partners's current 5-Year RORE % of 38.19 is 497.7% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Construction Partners and its competitors. For the Construction industry, the median 5-Year RORE % is 6.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Construction Partners's current 5-Year RORE % is 38.19. 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 5-Year RORE % is 38.19 and 497.7% above the Construction industry median of 6.39. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Construction Partners (ROAD), the current 5-Year RORE % is 38.19 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:
5-Year RORE %: 38.19
GF Value™: $120.83 vs. price of $122.53 (1.4% above fair value)
Industry Position: 497.7% above the Construction median (#333 of 1496)
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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