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Should Quality-Oriented Investors Explore STERLING INFRASTRUCTURE INC (NASDAQ:STRL)?

By Mill Chart

Last update: Feb 20, 2024

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.

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

  • 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 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 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.
  • STERLING INFRASTRUCTURE INC exhibits impressive Profit Quality (5-year) with a 142.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • STERLING INFRASTRUCTURE INC has consistently achieved strong EBIT growth over the past 5 years, with a 43.73% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • STERLING INFRASTRUCTURE INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What else is there to say on the fundamentals of NASDAQ:STRL?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to STRL. STRL was compared to 39 industry peers in the Construction & Engineering industry. STRL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. STRL is not valued too expensively and it also shows a decent growth rate. These ratings would make STRL suitable for quality investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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