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Why Quality Investors May Find STERLING INFRASTRUCTURE INC (NASDAQ:STRL) Attractive.

By Mill Chart

Last update: Mar 27, 2024

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.

Key Considerations for Quality Investors.

  • Over the past 5 years, STERLING INFRASTRUCTURE INC has experienced impressive revenue growth, with 13.7% 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 836.0%, 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.
  • With a Debt/Free Cash Flow Ratio of 0.82, STERLING INFRASTRUCTURE INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a robust Profit Quality (5-year) ratio of 181.0%, 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.
  • The 5-year EBIT growth of STERLING INFRASTRUCTURE INC has been remarkable, with 37.14% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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

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.

STRL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 41 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make STRL suitable for growth and 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 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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