Latest update
$125
Updated: Jun 17, 2026, 1:46 PM UTC
Browsing public data
ROAD, a civil infrastructure company specializing in road construction and maintenance across several Southern US states, demonstrates strong year-over-year growth in revenue, net income, and free cash flow. However, recent quarterly performance shows deceleration. The company's operations include integrated hot mix asphalt (HMA) manufacturing, aggregate mining, and liquid asphalt distribution. Financially, ROAD faces challenges with a high debt-to-equity ratio and weak debt service capacity, coupled with a stretched valuation (P/E 54.6x). Despite these financial concerns, the stock exhibits strong short-term price momentum, trading significantly above its moving averages with expanding volume.
Revenue
The total dollars the company billed customers. When this number grows quarter after quarter, the business is finding more demand.
Latest
↓$769.2M
Q1 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
→-5.0%
vs Q4 2025
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
↑+34.6%
vs Q1 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
Net income
What's left from revenue after paying every cost — employees, materials, taxes, interest. Sometimes called profit or 'the bottom line.'
Latest
↓$9.2M
Q1 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
↓-46.6%
vs Q4 2025
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
↑+117.8%
vs Q1 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
Free cash flow
The cash actually left in the bank after the company has paid for everything and reinvested in itself. Harder to fake than net income.
Latest
↓$18.9M
Q1 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
↓-59.8%
vs Q4 2025
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
↑+33.1%
vs Q1 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
| Metric | 3 yr | 2 yr | 1 yr |
|---|---|---|---|
| Revenue | — | — | +34.6% $571.7M→$769.2M |
| Net income | — | — | +117.9% $4.2M→$9.2M |
| Free cash flow | — | — | +33.1% $14.2M→$18.9M |
P/E TTM
↑54.6×
Trailing twelve months. Today's price divided by the last year of actual earnings.
P/E NTM
↑32.6×
Next twelve months. Today's price divided by what analysts expect the company to earn over the coming year.
Profitability
↓Weak
Operating margin (and the wider return profile) tells you how efficiently each dollar of sales becomes profit. High and rising = pricing power; low or falling = the business is grinding.
Share count
→Stable
Are the buybacks outrunning the stock-based comp? A shrinking share count means every existing share owns a bigger slice of future earnings.
Debt load
↓Heavy
Total debt against cash and earnings power (EBITDA). Light debt leaves room to invest and weather downturns; heavy debt shrinks the margin for error.
Debt service
↓Weak
Whether the cash the business generates easily covers its interest and loan payments. Strong here = no forced selling in a bad year.
Cash return at today's price
↓1.0%
Free cash flow divided by market cap — the cash yield you're getting for the price you pay. Above ~6% is rich, below ~3% is thin. P/E shown when the yield is too small to be useful.
ROAD is currently exhibiting strong markup characteristics, reflected in its price action and expanding volume. Despite this bullish short-term trend, the stock is significantly overextended from its moving averages, making the current entry point risky. Additionally, fundamental concerns regarding valuation, debt, and recent quarterly deceleration suggest caution. Waiting for a consolidation or a pullback closer to average price levels would offer a more reasonable risk-adjusted entry.
Short-term thesis
ROAD is positioned to benefit from sustained governmental infrastructure investment, utilizing its integrated materials and services. While long-term demand drivers are strong, current valuation is stretched, and the balance sheet is burdened by significant debt with weak debt service capacity. Recent quarterly business deceleration also presents a short-term concern, requiring a cautious approach despite strong price momentum.
Long-term exposure
Avoid
The business or valuation backdrop is not ready for long-term conviction.
Entry window
Wait
The stock has demonstrated strong momentum, pushing well above its short-term price averages. While the overall trend is positive, its current extended position suggests that a more favorable entry might emerge after some consolidation or a brief pullback. Prudence dictates waiting for better risk/reward.
Risk check
Fragile
The downside can widen quickly if this setup goes wrong.
Alignment
Mixed
Neither horizon fully wins, so size and patience matter.
What supports it
What limits it
Long-term thesis
The secular trend of increasing investment in America's aging civil infrastructure, particularly roads and highways, provides a sustained demand tailwind for specialized construction and materials companies.
Bottleneck Role
ROAD acts as a key enabler for infrastructure development, providing essential materials (HMA, aggregates) and services (paving, site development) necessary for road networks. The bottleneck is the limited supply of skilled labor, equipment, and efficient project execution capacity to meet escalating infrastructure upgrade mandates.
Consensus Blind Spot
The market may be underestimating the sustained, multi-year tailwinds from governmental infrastructure funding and ROAD's ability to leverage its integrated model for margin expansion and long-term earnings growth, potentially overlooking the short-term financial weaknesses.
Demand Gap
The current demand for infrastructure upgrades far outstrips the supply capacity of qualified contractors and necessary materials, creating a pricing and volume opportunity for efficient operators like ROAD.
Demand to Equity Scenarios
Accelerated federal/state funding, favorable legislative environment, high utilization.
Demand
+30%
Earnings
+30%
Equity implication
+40%
Increased project pipeline, improved pricing power, higher asset utilization.
Steady ongoing infrastructure funding as planned, moderate project execution, competitive environment.
Demand
+15%
Earnings
+15%
Equity implication
+20%
Consistent project volumes, stable margins, ongoing operational improvements.
Funding delays, economic downturn reducing private sector demand, intense competition, rising input costs.
Demand
-10%
Earnings
-10%
Equity implication
-15%
Reduced project awards, margin compression due to cost increases and competition, lower asset utilization.
Dependency Chain
Repricing Triggers
Must be true
Thesis broken if
What changed
Signal
Conviction
Long term
Stock
Added since last run
7No longer flagged
0Nothing dropped this run
My prior reasoning that the stock was extended and due for a consolidation or pullback was accurate, as the price has remained relatively neutral after the strong run-up.
Jun 17, 2026
LatestUpdated Jun 17, 2026, 1:46 PM UTC
Price at review
$125
The stock has demonstrated strong momentum, pushing well above its short-term price averages. While the overall trend is positive, its current extended position suggests that a more favorable entry might emerge after some consolidation or a brief pullback. Prudence dictates waiting for better risk/reward.
Jun 17, 2026
Updated Jun 17, 2026, 1:45 PM UTC
Price at review
$125
The stock has seen significant short-term momentum, trading well above its short-term moving averages with increasing volume. While the overall trend is positive, the current extension from core price levels suggests a potential pullback before a more comfortable entry.