Construction Partners (ROAD) Could Be 35% Undervalued Following The Ellsworth Acquisition
Construction Partners (ROAD) has been in focus after completing its acquisition of Ellsworth Construction in Oklahoma, widening its footprint in the Tulsa and Oklahoma City markets and adding asphalt manufacturing and construction capacity.
See our latest analysis for Construction Partners.
Despite the Ellsworth acquisition and an upcoming fiscal Q3 results date on 7 August 2026, Construction Partners’ recent share price performance has softened, with the 30 day share price return down 14.5% and the 1 year total shareholder return down 8.3%, set against a very strong 3 year total shareholder return above 200%.
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After a strong multi year run, Construction Partners now sits well below recent highs as the Ellsworth deal closes and Q3 results approach. Investors may be considering whether it makes more sense to buy at today’s price or wait for a deeper pullback.
Most Popular Narrative: 35.1% Undervalued
On the most followed narrative, Construction Partners’ fair value of $150 sits well above the last close at $97.35, which frames the current pullback in a very different light.
Construction Partners is set to benefit from sustained increases in federal, state, and local infrastructure funding supported by the Infrastructure Investment and Jobs Act (IIJA) and robust state programs leading to multi year growth in backlog and long term visibility on revenue.
Want to see why this narrative points to much higher earnings power? Revenue, margins and the future earnings multiple are all working together in a tightly argued valuation story.
Result: Fair Value of $150 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors still need to weigh risks for Construction Partners, particularly the possibility of any slowdown in public infrastructure funding or sustained asphalt and energy cost pressures that squeeze margins.
Find out about the key risks to this Construction Partners narrative.
Another View on Construction Partners’ Valuation
The earlier fair value of $150 for Construction Partners leans on long term earnings forecasts and cash flow assumptions. On a simpler yardstick, the current P/E of 43.3x is higher than the US Construction industry at 40.1x and above peer average of 38.6x, yet close to a fair ratio of 44.7x. This suggests less obvious upside and a tighter margin for error if growth expectations change.
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With both risks and rewards in play for Construction Partners, it makes sense to move quickly, review the data for yourself, and weigh the 4 key rewards and 1 important warning sign.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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