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Should you consider STERLING INFRASTRUCTURE INC (NASDAQ:STRL) for quality investing?

By Mill Chart

Last update: Apr 19, 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.

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

  • STERLING INFRASTRUCTURE INC has demonstrated significant revenue growth over the past 5 years, with a 13.7% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 836.0%, 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 demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.82, 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.
  • The Profit Quality (5-year) of STERLING INFRASTRUCTURE INC stands at 181.0%, 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 37.14%, 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 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.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 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 41 industry peers in the Construction & Engineering industry. STRL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STRL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, STRL could be worth investigating further for growth and quality investing!.

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

More ideas for quality investing can be found on ChartMill 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.

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