STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
326.6 USD
-54.1 (-14.21%)
330.17 USD
+3.57 (+1.09%)
STRL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making STRL a very profitable company, without any liquidiy or solvency issues. STRL is valued quite expensively, but it does show have an excellent growth rating. With these ratings, STRL could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
STRL had positive earnings in the past year.
STRL had a positive operating cash flow in the past year.
In the past 5 years STRL has always been profitable.
STRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STRL (12.32%) is better than 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 30.04%, STRL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Return On Invested Capital of STRL (16.82%) is better than 81.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STRL is below the industry average of 16.81%.
The last Return On Invested Capital (16.82%) for STRL is above the 3 year average (13.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.32% | ||
| ROE | 30.04% | ||
| ROIC | 16.82% |
ROA(3y)9.32%
ROA(5y)7.49%
ROE(3y)25.57%
ROE(5y)22%
ROIC(3y)13.99%
ROIC(5y)12.52%
1.3 Margins
The Profit Margin of STRL (14.14%) is better than 92.73% of its industry peers.
In the last couple of years the Profit Margin of STRL has grown nicely.
STRL has a better Operating Margin (15.96%) than 94.55% of its industry peers.
In the last couple of years the Operating Margin of STRL has grown nicely.
STRL has a Gross Margin of 23.05%. This is in the better half of the industry: STRL outperforms 69.09% of its industry peers.
In the last couple of years the Gross Margin of STRL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.96% | ||
| PM (TTM) | 14.14% | ||
| GM | 23.05% |
OM growth 3Y16.9%
OM growth 5Y27.42%
PM growth 3Y40.09%
PM growth 5Y27.99%
GM growth 3Y11.86%
GM growth 5Y16.04%
2. Health
2.1 Basic Checks
STRL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, STRL has less shares outstanding
Compared to 5 years ago, STRL has more shares outstanding
Compared to 1 year ago, STRL has an improved debt to assets ratio.
2.2 Solvency
STRL has an Altman-Z score of 5.74. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of STRL (5.74) is better than 80.00% of its industry peers.
The Debt to FCF ratio of STRL is 0.81, which is an excellent value as it means it would take STRL, only 0.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.81, STRL belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
STRL has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.27, STRL is doing good in the industry, outperforming 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 5.74 |
ROIC/WACC1.66
WACC10.11%
2.3 Liquidity
A Current Ratio of 1.00 indicates that STRL may have some problems paying its short term obligations.
With a Current ratio value of 1.00, STRL is not doing good in the industry: 67.27% of the companies in the same industry are doing better.
A Quick Ratio of 1.00 indicates that STRL may have some problems paying its short term obligations.
The Quick ratio of STRL (1.00) is worse than 65.45% of its industry peers.
STRL does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
STRL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.30%, which is quite impressive.
STRL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.19% yearly.
STRL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.20%.
The Revenue has been growing by 13.44% on average over the past years. This is quite good.
EPS 1Y (TTM)72.3%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%50.76%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%16.05%
3.2 Future
STRL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.38% yearly.
Based on estimates for the next years, STRL will show a quite strong growth in Revenue. The Revenue will grow by 11.23% on average per year.
EPS Next Y-0.19%
EPS Next 2Y9.24%
EPS Next 3Y13.38%
EPS Next 5YN/A
Revenue Next Year4.97%
Revenue Next 2Y12.24%
Revenue Next 3Y11.23%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STRL is valuated quite expensively with a Price/Earnings ratio of 32.02.
The rest of the industry has a similar Price/Earnings ratio as STRL.
Compared to an average S&P500 Price/Earnings ratio of 25.91, STRL is valued a bit more expensive.
STRL is valuated quite expensively with a Price/Forward Earnings ratio of 33.05.
The rest of the industry has a similar Price/Forward Earnings ratio as STRL.
STRL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 33.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STRL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, STRL is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.73 | ||
| EV/EBITDA | 23.36 |
4.3 Compensation for Growth
The excellent profitability rating of STRL may justify a higher PE ratio.
STRL's earnings are expected to grow with 13.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y9.24%
EPS Next 3Y13.38%
5. Dividend
5.1 Amount
No dividends for STRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
326.6
-54.1 (-14.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.01%
Inst Owner Change-4.06%
Ins Owners2.12%
Ins Owner Change-0.18%
Market Cap10.03B
Revenue(TTM)2.23B
Net Income(TTM)315.77M
Analysts84
Price Target360.32 (10.32%)
Short Float %10.62%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.14%
Min EPS beat(2)14.96%
Max EPS beat(2)17.32%
EPS beat(4)3
Avg EPS beat(4)48.54%
Min EPS beat(4)-6.96%
Max EPS beat(4)168.82%
EPS beat(8)7
Avg EPS beat(8)34.36%
EPS beat(12)10
Avg EPS beat(12)30.74%
EPS beat(16)14
Avg EPS beat(16)29.48%
Revenue beat(2)2
Avg Revenue beat(2)8.7%
Min Revenue beat(2)8.67%
Max Revenue beat(2)8.73%
Revenue beat(4)3
Avg Revenue beat(4)3.19%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)8.73%
Revenue beat(8)5
Avg Revenue beat(8)0.6%
Revenue beat(12)7
Avg Revenue beat(12)-2%
Revenue beat(16)7
Avg Revenue beat(16)-4.43%
PT rev (1m)0%
PT rev (3m)37.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.51%
EPS NY rev (1m)0%
EPS NY rev (3m)10.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 33.05 | ||
| P/S | 4.49 | ||
| P/FCF | 27.73 | ||
| P/OCF | 23.42 | ||
| P/B | 9.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.36 |
EPS(TTM)10.2
EY3.12%
EPS(NY)9.88
Fwd EY3.03%
FCF(TTM)11.78
FCFY3.61%
OCF(TTM)13.94
OCFY4.27%
SpS72.72
BVpS34.23
TBVpS-2.97
PEG (NY)N/A
PEG (5Y)0.59
Graham Number88.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.32% | ||
| ROE | 30.04% | ||
| ROCE | 22.34% | ||
| ROIC | 16.82% | ||
| ROICexc | 20.82% | ||
| ROICexgc | 182.79% | ||
| OM | 15.96% | ||
| PM (TTM) | 14.14% | ||
| GM | 23.05% | ||
| FCFM | 16.19% |
ROA(3y)9.32%
ROA(5y)7.49%
ROE(3y)25.57%
ROE(5y)22%
ROIC(3y)13.99%
ROIC(5y)12.52%
ROICexc(3y)24.11%
ROICexc(5y)18.99%
ROICexgc(3y)529.53%
ROICexgc(5y)335.16%
ROCE(3y)18.58%
ROCE(5y)16.63%
ROICexgc growth 3Y175.97%
ROICexgc growth 5Y106.02%
ROICexc growth 3Y47.63%
ROICexc growth 5Y45.11%
OM growth 3Y16.9%
OM growth 5Y27.42%
PM growth 3Y40.09%
PM growth 5Y27.99%
GM growth 3Y11.86%
GM growth 5Y16.04%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 91.96% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.85% | ||
| Profit Quality | 114.53% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 5.74 |
F-Score7
WACC10.11%
ROIC/WACC1.66
Cap/Depr(3y)115.79%
Cap/Depr(5y)116.85%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.3%
Profit Quality(3y)202.97%
Profit Quality(5y)200.18%
High Growth Momentum
Growth
EPS 1Y (TTM)72.3%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%50.76%
EPS Next Y-0.19%
EPS Next 2Y9.24%
EPS Next 3Y13.38%
EPS Next 5YN/A
Revenue 1Y (TTM)6.2%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%16.05%
Revenue Next Year4.97%
Revenue Next 2Y12.24%
Revenue Next 3Y11.23%
Revenue Next 5YN/A
EBIT growth 1Y37.71%
EBIT growth 3Y33.7%
EBIT growth 5Y44.55%
EBIT Next Year77.29%
EBIT Next 3Y35.32%
EBIT Next 5YN/A
FCF growth 1Y3.38%
FCF growth 3Y54.79%
FCF growth 5Y73.2%
OCF growth 1Y3.91%
OCF growth 3Y46.25%
OCF growth 5Y63.84%
STERLING INFRASTRUCTURE INC / STRL FAQ
Can you provide the ChartMill fundamental rating for STERLING INFRASTRUCTURE INC?
ChartMill assigns a fundamental rating of 7 / 10 to STRL.
What is the valuation status of STERLING INFRASTRUCTURE INC (STRL) stock?
ChartMill assigns a valuation rating of 3 / 10 to STERLING INFRASTRUCTURE INC (STRL). This can be considered as Overvalued.
How profitable is STERLING INFRASTRUCTURE INC (STRL) stock?
STERLING INFRASTRUCTURE INC (STRL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for STRL stock?
The Price/Earnings (PE) ratio for STERLING INFRASTRUCTURE INC (STRL) is 32.02 and the Price/Book (PB) ratio is 9.54.
How financially healthy is STERLING INFRASTRUCTURE INC?
The financial health rating of STERLING INFRASTRUCTURE INC (STRL) is 7 / 10.