Should I Buy Construction Partners (ROAD)? Finance YouTuber Analysis

The YouTuber has taken a smaller position in Construction Partners Inc. at $95 per share, believing its 32% correction from recent highs is unjustified. He highlights the company's simple thesis of maintaining and building roadways in the Southern US, its increased guidance due to high demand, and its valuation at 12x trailing and 10x forward EBITDA, which is on the lower end of its historical range. The company projects to double its business by 2030.

“And full disclosure, I have taken on a smaller position in the stock at $95 per share yesterday because again, I don't think that the selling has been justified because the company in its most recent earnings report actually increased its guidance because they are seeing so much demand and they're executing so well.”

The YouTuber is close to buying Construction Partners, citing its critical role in maintaining US infrastructure, recurring revenue from road maintenance, and strong acquisition-led growth strategy. The stock trades at 14.9 times trailing 12-month EBITDA, below its historical average of 17, and projects 19% annual EBITDA growth, suggesting significant undervaluation and a 17.5% CAGR over the next five years.

“So, I do think that there is an argument that Roadstock is looking undervalued in the market.”