STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
332.82 USD
-5.84 (-1.72%)
333.5 USD
+0.68 (+0.2%)
We assign a fundamental rating of 7 out of 10 to STRL. STRL was compared to 55 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 valued quite expensive, but it does show an excellent growth. This makes STRL very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year STRL was profitable.
In the past year STRL had a positive cash flow from operations.
Each year in the past 5 years STRL has 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 12.32%, STRL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
With an excellent Return On Equity value of 30.04%, STRL belongs to the best 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.
STRL had an Average Return On Invested Capital over the past 3 years of 13.99%. This is below the industry average of 16.87%.
The 3 year average ROIC (13.99%) for STRL is below the current ROIC(16.82%), indicating increased profibility in the last year.
| 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
STRL has a Profit Margin of 14.14%. This is amongst the best in the industry. STRL outperforms 92.73% of its industry peers.
STRL's Profit Margin has improved in the last couple of years.
The Operating Margin of STRL (15.96%) is better than 94.55% 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 23.05%, STRL is in the better half of the industry, outperforming 69.09% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STRL is still creating some value.
Compared to 1 year ago, STRL has less shares outstanding
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
STRL has an Altman-Z score of 5.89. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
STRL has a Altman-Z score of 5.89. This is in the better half of the industry: STRL outperforms 80.00% of its industry peers.
STRL has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
STRL has a better Debt to FCF ratio (0.81) than 85.45% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that STRL is not too dependend on debt financing.
The Debt to Equity ratio of STRL (0.27) is better than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 5.89 |
ROIC/WACC1.65
WACC10.2%
2.3 Liquidity
STRL has a Current Ratio of 1.00. This is a bad value and indicates that STRL is not financially healthy enough and could expect problems in meeting its short term obligations.
STRL has a worse Current ratio (1.00) than 70.91% of its industry peers.
STRL has a Quick Ratio of 1.00. This is a bad value and indicates that STRL is not financially healthy enough and could expect problems in meeting its short term obligations.
STRL's Quick ratio of 1.00 is on the low side compared to the rest of the industry. STRL is outperformed by 69.09% of its industry peers.
The current and quick ratio evaluation for STRL is rather negative, while it does have 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
The Earnings Per Share has grown by an impressive 72.30% over the past year.
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
The Earnings Per Share is expected to grow by 13.38% on average over the next years. This is quite good.
STRL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.23% yearly.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
STRL is valuated quite expensively with a Price/Earnings ratio of 32.63.
STRL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of STRL to the average of the S&P500 Index (25.56), we can say STRL is valued slightly more expensively.
With a Price/Forward Earnings ratio of 33.68, STRL can be considered very expensive at the moment.
STRL's Price/Forward Earnings is on the same level as the industry average.
STRL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.63 | ||
| Fwd PE | 33.68 |
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 | 28.26 | ||
| EV/EBITDA | 24.22 |
4.3 Compensation for Growth
The excellent profitability rating of STRL may justify a higher PE ratio.
A more expensive valuation may be justified as STRL's earnings are expected to grow with 13.38% in the coming years.
PEG (NY)N/A
PEG (5Y)0.6
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 |
332.82
-5.84 (-1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.01%
Inst Owner Change-2.46%
Ins Owners2.12%
Ins Owner Change-0.61%
Market Cap10.22B
Revenue(TTM)2.23B
Net Income(TTM)315.77M
Analysts84
Price Target360.32 (8.26%)
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)3.57%
EPS NQ rev (3m)23.56%
EPS NY rev (1m)0%
EPS NY rev (3m)10.43%
Revenue NQ rev (1m)5.92%
Revenue NQ rev (3m)19.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.63 | ||
| Fwd PE | 33.68 | ||
| P/S | 4.58 | ||
| P/FCF | 28.26 | ||
| P/OCF | 23.87 | ||
| P/B | 9.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.22 |
EPS(TTM)10.2
EY3.06%
EPS(NY)9.88
Fwd EY2.97%
FCF(TTM)11.78
FCFY3.54%
OCF(TTM)13.94
OCFY4.19%
SpS72.72
BVpS34.23
TBVpS-2.97
PEG (NY)N/A
PEG (5Y)0.6
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 | 5.89 |
F-Score7
WACC10.2%
ROIC/WACC1.65
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 32.63 and the Price/Book (PB) ratio is 9.72.
How financially healthy is STERLING INFRASTRUCTURE INC?
The financial health rating of STERLING INFRASTRUCTURE INC (STRL) is 7 / 10.