STERLING INFRASTRUCTURE INC (STRL) Fundamental Analysis & Valuation
NASDAQ:STRL • US8592411016
418.81 USD
+7.43 (+1.81%)
Last: Mar 10, 2026, 10:57 AM
This STRL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
STRL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 56 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 growing strongly while it is still valued neutral. This is a good combination! This makes STRL very considerable for growth and quality investing!
1. STRL Profitability Analysis
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
- STRL has a Return On Assets of 11.02%. This is amongst the best in the industry. STRL outperforms 82.14% of its industry peers.
- STRL's Return On Equity of 26.17% is amongst the best of the industry. STRL outperforms 80.36% of its industry peers.
- The Return On Invested Capital of STRL (19.47%) is better than 82.14% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for STRL is in line with the industry average of 17.18%.
- The last Return On Invested Capital (19.47%) for STRL is above the 3 year average (16.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.02% | ||
| ROE | 26.17% | ||
| ROIC | 19.47% |
ROA(3y)10.53%
ROA(5y)8.81%
ROE(3y)26.81%
ROE(5y)24.07%
ROIC(3y)16.48%
ROIC(5y)14.24%
1.3 Margins
- STRL has a Profit Margin of 11.65%. This is amongst the best in the industry. STRL outperforms 92.86% of its industry peers.
- STRL's Profit Margin has improved in the last couple of years.
- STRL has a better Operating Margin (16.64%) than 92.86% of its industry peers.
- STRL's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 22.98%, STRL is doing good in the industry, outperforming 73.21% of the companies in the same industry.
- In the last couple of years the Gross Margin of STRL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.64% | ||
| PM (TTM) | 11.65% | ||
| GM | 22.98% |
OM growth 3Y22.35%
OM growth 5Y16.87%
PM growth 3Y24.63%
PM growth 5Y27.57%
GM growth 3Y13.99%
GM growth 5Y9.44%
2. STRL Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STRL is creating value.
- STRL has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, STRL has more shares outstanding
- The debt/assets ratio for STRL has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.89 indicates that STRL is not in any danger for bankruptcy at the moment.
- STRL has a better Altman-Z score (6.89) than 87.50% of its industry peers.
- The Debt to FCF ratio of STRL is 0.80, which is an excellent value as it means it would take STRL, only 0.80 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.80, STRL belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
- STRL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- STRL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. STRL outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 6.89 |
ROIC/WACC1.92
WACC10.14%
2.3 Liquidity
- STRL has a Current Ratio of 1.01. This is a normal value and indicates that STRL is financially healthy and should not expect problems in meeting its short term obligations.
- STRL has a Current ratio of 1.01. This is in the lower half of the industry: STRL underperforms 73.21% of its industry peers.
- A Quick Ratio of 1.01 indicates that STRL should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.01, STRL is doing worse than 71.43% of the companies in the same industry.
- 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 | 1.01 | ||
| Quick Ratio | 1.01 |
3. STRL Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 13.16% over the past year.
- The Earnings Per Share has been growing by 43.87% on average over the past years. This is a very strong growth
- STRL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.69%.
- Measured over the past years, STRL shows a quite strong growth in Revenue. The Revenue has been growing by 15.21% on average per year.
EPS 1Y (TTM)13.16%
EPS 3Y38.72%
EPS 5Y43.87%
EPS Q2Q%-22.8%
Revenue 1Y (TTM)17.69%
Revenue growth 3Y12.06%
Revenue growth 5Y15.21%
Sales Q2Q%51.48%
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 19.81% yearly.
- STRL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.49% yearly.
EPS Next Y27.26%
EPS Next 2Y23.16%
EPS Next 3Y23.54%
EPS Next 5Y19.81%
Revenue Next Year24.2%
Revenue Next 2Y17.75%
Revenue Next 3Y12.9%
Revenue Next 5Y11.49%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. STRL Valuation Analysis
4.1 Price/Earnings Ratio
- STRL is valuated quite expensively with a Price/Earnings ratio of 44.70.
- STRL's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.45, STRL is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 35.12, the valuation of STRL can be described as expensive.
- STRL's Price/Forward Earnings ratio is in line with the industry average.
- STRL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.7 | ||
| Fwd PE | 35.12 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as STRL.
- STRL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STRL is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.38 | ||
| EV/EBITDA | 25.45 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- STRL has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as STRL's earnings are expected to grow with 23.54% in the coming years.
PEG (NY)1.64
PEG (5Y)1.02
EPS Next 2Y23.16%
EPS Next 3Y23.54%
5. STRL Dividend Analysis
5.1 Amount
- STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
STRL Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:STRL (3/10/2026, 10:57:30 AM)
418.81
+7.43 (+1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)02-25 2026-02-25/amc
Earnings (Next)05-04 2026-05-04
Inst Owners103.11%
Inst Owner Change-2.75%
Ins Owners2.11%
Ins Owner Change0.43%
Market Cap12.83B
Revenue(TTM)2.49B
Net Income(TTM)290.15M
Analysts86.67
Price Target460.53 (9.96%)
Short Float %7.33%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)20.45%
Min EPS beat(2)17.32%
Max EPS beat(2)23.59%
EPS beat(4)3
Avg EPS beat(4)12.23%
Min EPS beat(4)-6.96%
Max EPS beat(4)23.59%
EPS beat(8)7
Avg EPS beat(8)34.1%
EPS beat(12)10
Avg EPS beat(12)28.59%
EPS beat(16)14
Avg EPS beat(16)29.42%
Revenue beat(2)2
Avg Revenue beat(2)12.21%
Min Revenue beat(2)8.73%
Max Revenue beat(2)15.7%
Revenue beat(4)4
Avg Revenue beat(4)9.1%
Min Revenue beat(4)3.29%
Max Revenue beat(4)15.7%
Revenue beat(8)6
Avg Revenue beat(8)3.67%
Revenue beat(12)8
Avg Revenue beat(12)2.2%
Revenue beat(16)8
Avg Revenue beat(16)-1.44%
PT rev (1m)1.55%
PT rev (3m)-0.22%
EPS NQ rev (1m)28.2%
EPS NQ rev (3m)28.79%
EPS NY rev (1m)11.49%
EPS NY rev (3m)11.72%
Revenue NQ rev (1m)8.81%
Revenue NQ rev (3m)8.81%
Revenue NY rev (1m)4.08%
Revenue NY rev (3m)4.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.7 | ||
| Fwd PE | 35.12 | ||
| P/S | 5.15 | ||
| P/FCF | 35.38 | ||
| P/OCF | 29.17 | ||
| P/B | 11.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.45 |
EPS(TTM)9.37
EY2.24%
EPS(NY)11.92
Fwd EY2.85%
FCF(TTM)11.84
FCFY2.83%
OCF(TTM)14.36
OCFY3.43%
SpS81.27
BVpS36.18
TBVpS-1.02
PEG (NY)1.64
PEG (5Y)1.02
Graham Number87.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.02% | ||
| ROE | 26.17% | ||
| ROCE | 25.71% | ||
| ROIC | 19.47% | ||
| ROICexc | 25.7% | ||
| ROICexgc | 388.52% | ||
| OM | 16.64% | ||
| PM (TTM) | 11.65% | ||
| GM | 22.98% | ||
| FCFM | 14.57% |
ROA(3y)10.53%
ROA(5y)8.81%
ROE(3y)26.81%
ROE(5y)24.07%
ROIC(3y)16.48%
ROIC(5y)14.24%
ROICexc(3y)27.83%
ROICexc(5y)21.74%
ROICexgc(3y)646.04%
ROICexgc(5y)403.74%
ROCE(3y)21.77%
ROCE(5y)18.8%
ROICexgc growth 3Y100.3%
ROICexgc growth 5Y47.58%
ROICexc growth 3Y19.77%
ROICexc growth 5Y15.41%
OM growth 3Y22.35%
OM growth 5Y16.87%
PM growth 3Y24.63%
PM growth 5Y27.57%
GM growth 3Y13.99%
GM growth 5Y9.44%
F-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 100.26% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 23.22 | ||
| Cash Conversion | 89.55% | ||
| Profit Quality | 125% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 6.89 |
F-Score6
WACC10.14%
ROIC/WACC1.92
Cap/Depr(3y)110.25%
Cap/Depr(5y)116.84%
Cap/Sales(3y)3.4%
Cap/Sales(5y)3.39%
Profit Quality(3y)195.12%
Profit Quality(5y)182.63%
High Growth Momentum
Growth
EPS 1Y (TTM)13.16%
EPS 3Y38.72%
EPS 5Y43.87%
EPS Q2Q%-22.8%
EPS Next Y27.26%
EPS Next 2Y23.16%
EPS Next 3Y23.54%
EPS Next 5Y19.81%
Revenue 1Y (TTM)17.69%
Revenue growth 3Y12.06%
Revenue growth 5Y15.21%
Sales Q2Q%51.48%
Revenue Next Year24.2%
Revenue Next 2Y17.75%
Revenue Next 3Y12.9%
Revenue Next 5Y11.49%
EBIT growth 1Y56.29%
EBIT growth 3Y37.11%
EBIT growth 5Y34.65%
EBIT Next Year61.1%
EBIT Next 3Y23.54%
EBIT Next 5Y19.21%
FCF growth 1Y-12.85%
FCF growth 3Y31.86%
FCF growth 5Y32.15%
OCF growth 1Y-11.49%
OCF growth 3Y26.16%
OCF growth 5Y29.06%
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.
Can you provide the valuation status for STERLING INFRASTRUCTURE INC?
ChartMill assigns a valuation rating of 4 / 10 to STERLING INFRASTRUCTURE INC (STRL). This can be considered as Fairly Valued.
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 44.7 and the Price/Book (PB) ratio is 11.58.