Why STERLING INFRASTRUCTURE INC (NASDAQ:STRL) qualifies as a quality stock.

In this article we will dive into STERLING INFRASTRUCTURE INC (NASDAQ:STRL) as a possible candidate for quality investing. Investors should always do their own research, but we noticed STERLING INFRASTRUCTURE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into STERLING INFRASTRUCTURE INC's Quality Metrics.

• Over the past 5 years, STERLING INFRASTRUCTURE INC has experienced impressive revenue growth, with 13.06% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 176.0%, STERLING INFRASTRUCTURE INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• STERLING INFRASTRUCTURE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.02, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 142.0%, STERLING INFRASTRUCTURE INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• STERLING INFRASTRUCTURE INC has experienced impressive EBIT growth over the past 5 years, with 43.73% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• STERLING INFRASTRUCTURE INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous 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 has a decent growth rate and is not valued too expensively. These ratings could make STRL a good candidate for quality investing.

Our latest full fundamental report of STRL contains the most current fundamental analsysis.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.