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Why NASDAQ:STRL Stands Out as a Quality Stock.

By Mill Chart

Last update: Dec 18, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if STERLING INFRASTRUCTURE INC (NASDAQ:STRL) is suited for quality investing. Investors should of course do their own research, but we spotted STERLING INFRASTRUCTURE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • The 5-year revenue growth of STERLING INFRASTRUCTURE INC has been remarkable, with 13.06% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a notable ROIC excluding cash and goodwill at 176.0%, STERLING INFRASTRUCTURE INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • STERLING INFRASTRUCTURE INC maintains a healthy Debt/Free Cash Flow Ratio of 1.02, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • The Profit Quality (5-year) of STERLING INFRASTRUCTURE INC stands at 142.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 43.73%, STERLING INFRASTRUCTURE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • STERLING INFRASTRUCTURE INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, STRL scores 7 out of 10 in our fundamental rating. STRL was compared to 38 industry peers in the Construction & Engineering industry. STRL gets an excellent profitability rating and is at the same time showing great financial health properties. STRL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes STRL very considerable for value and quality investing!

For an up to date full fundamental analysis you can check the fundamental report of STRL

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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