STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
NASDAQ:STRL - Nasdaq - US8592411016 - Common Stock - Currency: USD
Overall STRL gets a fundamental rating of 7 out of 10. We evaluated STRL against 47 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on STRL. This makes STRL very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year STRL was profitable.
STRL had a positive operating cash flow in the past year.
In the past 5 years STRL has always been profitable.
Each year in the past 5 years STRL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.11%, STRL belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
With an excellent Return On Equity value of 25.74%, STRL belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
STRL has a Return On Invested Capital of 15.86%. This is amongst the best in the industry. STRL outperforms 88.89% of its industry peers.
STRL had an Average Return On Invested Capital over the past 3 years of 11.50%. This is in line with the industry average of 11.58%.
The 3 year average ROIC (11.50%) for STRL is below the current ROIC(15.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 25.74% | ||
| ROIC | 15.86% |
ROA(3y)6.75%
ROA(5y)5.79%
ROE(3y)20.76%
ROE(5y)19.25%
ROIC(3y)11.5%
ROIC(5y)9.97%
1.3 Margins
The Profit Margin of STRL (8.77%) is better than 97.78% of its industry peers.
STRL's Profit Margin has improved in the last couple of years.
STRL has a Operating Margin of 12.31%. This is amongst the best in the industry. STRL outperforms 95.56% of its industry peers.
STRL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 19.55%, STRL is in line with its industry, outperforming 57.78% of the companies in the same industry.
STRL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.31% | ||
| PM (TTM) | 8.77% | ||
| GM | 19.55% |
OM growth 3Y11.15%
OM growth 5Y20.61%
PM growth 3Y26.8%
PM growth 5Y23.69%
GM growth 3Y5.35%
GM growth 5Y10%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STRL is creating some value.
Compared to 1 year ago, STRL has more shares outstanding
STRL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STRL has an improved debt to assets ratio.
2.2 Solvency
STRL has an Altman-Z score of 3.88. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
STRL has a Altman-Z score of 3.88. This is in the better half of the industry: STRL outperforms 64.44% of its industry peers.
STRL has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.83, STRL belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that STRL is not too dependend on debt financing.
STRL has a better Debt to Equity ratio (0.41) than 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.35
WACC11.75%
2.3 Liquidity
STRL has a Current Ratio of 1.29. This is a normal value and indicates that STRL is financially healthy and should not expect problems in meeting its short term obligations.
STRL's Current ratio of 1.29 is on the low side compared to the rest of the industry. STRL is outperformed by 60.00% of its industry peers.
A Quick Ratio of 1.29 indicates that STRL should not have too much problems paying its short term obligations.
STRL has a Quick ratio of 1.29. This is comparable to the rest of the industry: STRL outperforms 46.67% 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 | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
STRL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.92%, which is quite impressive.
STRL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.77% yearly.
Looking at the last year, STRL shows a quite strong growth in Revenue. The Revenue has grown by 18.29% in the last year.
Measured over the past years, STRL shows a quite strong growth in Revenue. The Revenue has been growing by 13.70% on average per year.
EPS 1Y (TTM)40.92%
EPS 3Y43.07%
EPS 5Y36.77%
EPS Q2Q%56.23%
Revenue 1Y (TTM)18.29%
Revenue growth 3Y17.15%
Revenue growth 5Y13.7%
Sales Q2Q%5.96%
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 18.41% yearly.
STRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
EPS Next Y36.63%
EPS Next 2Y21.97%
EPS Next 3Y18.41%
EPS Next 5YN/A
Revenue Next Year6.93%
Revenue Next 2Y5.69%
Revenue Next 3Y7.39%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.41 indicates a rather expensive valuation of STRL.
STRL's Price/Earnings ratio is a bit cheaper when compared to the industry. STRL is cheaper than 68.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, STRL is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.93, the valuation of STRL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, STRL is valued a bit cheaper than 62.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, STRL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 20.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRL is valued cheaper than 82.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STRL is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.92 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of STRL may justify a higher PE ratio.
STRL's earnings are expected to grow with 18.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)0.64
EPS Next 2Y21.97%
EPS Next 3Y18.41%
5. Dividend
5.1 Amount
STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STERLING INFRASTRUCTURE INC
NASDAQ:STRL (2/4/2025, 8:09:35 PM)
Premarket: 138.8 +0.23 (+0.17%)138.57
+1.56 (+1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.09%
Inst Owner Change-1.42%
Ins Owners2.97%
Ins Owner Change0.99%
Market Cap4.26B
Analysts82.5
Price Target177.82 (28.33%)
Short Float %4.09%
Short Ratio2.87
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)13.88%
Min EPS beat(2)12.68%
Max EPS beat(2)15.08%
EPS beat(4)4
Avg EPS beat(4)20.18%
Min EPS beat(4)12.68%
Max EPS beat(4)27.32%
EPS beat(8)7
Avg EPS beat(8)21.85%
EPS beat(12)11
Avg EPS beat(12)23.13%
EPS beat(16)14
Avg EPS beat(16)24.04%
Revenue beat(2)1
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-5.14%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-8.81%
Max Revenue beat(4)4.58%
Revenue beat(8)4
Avg Revenue beat(8)-4.59%
Revenue beat(12)4
Avg Revenue beat(12)-6.97%
Revenue beat(16)6
Avg Revenue beat(16)-8.04%
PT rev (1m)0%
PT rev (3m)23.35%
EPS NQ rev (1m)1.34%
EPS NQ rev (3m)10.9%
EPS NY rev (1m)0.27%
EPS NY rev (3m)5.2%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 20.93 | ||
| P/S | 2.02 | ||
| P/FCF | 10.92 | ||
| P/OCF | 9.05 | ||
| P/B | 5.94 | ||
| P/tB | 35.57 | ||
| EV/EBITDA | 12.12 |
EPS(TTM)5.92
EY4.27%
EPS(NY)6.62
Fwd EY4.78%
FCF(TTM)12.69
FCFY9.16%
OCF(TTM)15.31
OCFY11.05%
SpS68.48
BVpS23.33
TBVpS3.9
PEG (NY)0.64
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 25.74% | ||
| ROCE | 21.85% | ||
| ROIC | 15.86% | ||
| ROICexc | 35.03% | ||
| ROICexgc | N/A | ||
| OM | 12.31% | ||
| PM (TTM) | 8.77% | ||
| GM | 19.55% | ||
| FCFM | 18.53% |
ROA(3y)6.75%
ROA(5y)5.79%
ROE(3y)20.76%
ROE(5y)19.25%
ROIC(3y)11.5%
ROIC(5y)9.97%
ROICexc(3y)16.02%
ROICexc(5y)13%
ROICexgc(3y)304.54%
ROICexgc(5y)196.86%
ROCE(3y)15.84%
ROCE(5y)13.73%
ROICexcg growth 3Y150.49%
ROICexcg growth 5Y85.72%
ROICexc growth 3Y25.71%
ROICexc growth 5Y10.11%
OM growth 3Y11.15%
OM growth 5Y20.61%
PM growth 3Y26.8%
PM growth 5Y23.69%
GM growth 3Y5.35%
GM growth 5Y10%
F-Score8
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 122.98% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 145% | ||
| Profit Quality | 211.33% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.88 |
F-Score8
WACC11.75%
ROIC/WACC1.35
Cap/Depr(3y)121.86%
Cap/Depr(5y)108.06%
Cap/Sales(3y)3.34%
Cap/Sales(5y)2.81%
Profit Quality(3y)208.84%
Profit Quality(5y)181.24%
High Growth Momentum
Growth
EPS 1Y (TTM)40.92%
EPS 3Y43.07%
EPS 5Y36.77%
EPS Q2Q%56.23%
EPS Next Y36.63%
EPS Next 2Y21.97%
EPS Next 3Y18.41%
EPS Next 5YN/A
Revenue 1Y (TTM)18.29%
Revenue growth 3Y17.15%
Revenue growth 5Y13.7%
Sales Q2Q%5.96%
Revenue Next Year6.93%
Revenue Next 2Y5.69%
Revenue Next 3Y7.39%
Revenue Next 5YN/A
EBIT growth 1Y33.91%
EBIT growth 3Y30.22%
EBIT growth 5Y37.14%
EBIT Next Year57.83%
EBIT Next 3Y24.18%
EBIT Next 5YN/A
FCF growth 1Y266.98%
FCF growth 3Y66.34%
FCF growth 5Y73.56%
OCF growth 1Y191.34%
OCF growth 3Y57.33%
OCF growth 5Y64.69%