STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
320.94 USD
+1.56 (+0.49%)
328 USD
+7.06 (+2.2%)
STRL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 52 industry peers in the Construction & Engineering industry. STRL gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year STRL had a positive cash flow from operations.
In the past 5 years STRL has always been profitable.
In the past 5 years STRL always reported a positive cash flow from operatings.
1.2 Ratios
STRL's Return On Assets of 13.19% is amongst the best of the industry. STRL outperforms 86.54% of its industry peers.
STRL has a Return On Equity of 32.32%. This is amongst the best in the industry. STRL outperforms 82.69% of its industry peers.
The Return On Invested Capital of STRL (17.29%) is better than 80.77% 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 17.22%.
The last Return On Invested Capital (17.29%) for STRL is above the 3 year average (13.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.19% | ||
| ROE | 32.32% | ||
| ROIC | 17.29% |
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 better Profit Margin (13.33%) than 90.38% of its industry peers.
STRL's Profit Margin has improved in the last couple of years.
STRL has a better Operating Margin (14.66%) than 94.23% 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 22.19%, STRL is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
STRL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.66% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.19% |
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
An Altman-Z score of 6.70 indicates that STRL is not in any danger for bankruptcy at the moment.
STRL has a Altman-Z score of 6.70. This is amongst the best in the industry. STRL outperforms 90.38% of its industry peers.
The Debt to FCF ratio of STRL is 0.68, which is an excellent value as it means it would take STRL, only 0.68 years of fcf income to pay off all of its debts.
STRL's Debt to FCF ratio of 0.68 is amongst the best of the industry. STRL outperforms 86.54% of its industry peers.
STRL has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, STRL is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 6.7 |
ROIC/WACC1.74
WACC9.95%
2.3 Liquidity
STRL has a Current Ratio of 1.42. This is a normal value and indicates that STRL is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.42, STRL is doing good in the industry, outperforming 65.38% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that STRL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.42, STRL is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.55% over the past year.
The Earnings Per Share has been growing by 54.19% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.31% in the past year.
STRL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.44% yearly.
EPS 1Y (TTM)76.55%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%38.32%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%5.43%
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 16.03% 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-4.09%
EPS Next 2Y5.55%
EPS Next 3Y16.03%
EPS Next 5YN/A
Revenue Next Year4.75%
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.
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
The Price/Earnings ratio is 34.88, which means the current valuation is very expensive for STRL.
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 (27.20), we can say STRL is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 34.79, the valuation of STRL can be described as expensive.
STRL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. STRL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.88 | ||
| Fwd PE | 34.79 |
4.2 Price Multiples
STRL's Enterprise Value to EBITDA is on the same level as the industry average.
69.23% of the companies in the same industry are more expensive than STRL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.61 | ||
| EV/EBITDA | 24.55 |
4.3 Compensation for Growth
STRL has an outstanding profitability rating, which may justify a higher PE ratio.
STRL's earnings are expected to grow with 16.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y5.55%
EPS Next 3Y16.03%
5. Dividend
5.1 Amount
STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
320.94
+1.56 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.08%
Inst Owner Change13.83%
Ins Owners2.14%
Ins Owner Change-0.06%
Market Cap9.86B
Analysts86.67
Price Target362.1 (12.82%)
Short Float %8.39%
Short Ratio5.21
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)1
Avg EPS beat(2)4%
Min EPS beat(2)-6.96%
Max EPS beat(2)14.96%
EPS beat(4)3
Avg EPS beat(4)47.38%
Min EPS beat(4)-6.96%
Max EPS beat(4)168.82%
EPS beat(8)6
Avg EPS beat(8)32.08%
EPS beat(12)10
Avg EPS beat(12)30.04%
EPS beat(16)14
Avg EPS beat(16)29.75%
Revenue beat(2)2
Avg Revenue beat(2)5.98%
Min Revenue beat(2)3.29%
Max Revenue beat(2)8.67%
Revenue beat(4)2
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)8.67%
Revenue beat(8)4
Avg Revenue beat(8)-0.85%
Revenue beat(12)6
Avg Revenue beat(12)-3.15%
Revenue beat(16)7
Avg Revenue beat(16)-4.18%
PT rev (1m)38.49%
PT rev (3m)64.35%
EPS NQ rev (1m)5%
EPS NQ rev (3m)20.92%
EPS NY rev (1m)6.1%
EPS NY rev (3m)10.19%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)6.81%
Revenue NY rev (1m)5.96%
Revenue NY rev (3m)8.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.88 | ||
| Fwd PE | 34.79 | ||
| P/S | 4.61 | ||
| P/FCF | 22.61 | ||
| P/OCF | 19.84 | ||
| P/B | 11.18 | ||
| P/tB | 36.65 | ||
| EV/EBITDA | 24.55 |
EPS(TTM)9.2
EY2.87%
EPS(NY)9.23
Fwd EY2.87%
FCF(TTM)14.2
FCFY4.42%
OCF(TTM)16.18
OCFY5.04%
SpS69.62
BVpS28.71
TBVpS8.76
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.19% | ||
| ROE | 32.32% | ||
| ROCE | 22.96% | ||
| ROIC | 17.29% | ||
| ROICexc | 35.46% | ||
| ROICexgc | 449.63% | ||
| OM | 14.66% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.19% | ||
| FCFM | 20.39% |
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%
ROICexcg growth 3Y175.97%
ROICexcg 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-Score8
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 87.21% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.66% | ||
| Profit Quality | 152.96% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 6.7 |
F-Score8
WACC9.95%
ROIC/WACC1.74
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)76.55%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%38.32%
EPS Next Y-4.09%
EPS Next 2Y5.55%
EPS Next 3Y16.03%
EPS Next 5YN/A
Revenue 1Y (TTM)3.31%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%5.43%
Revenue Next Year4.75%
Revenue Next 2Y12.24%
Revenue Next 3Y11.23%
Revenue Next 5YN/A
EBIT growth 1Y37.15%
EBIT growth 3Y33.7%
EBIT growth 5Y44.55%
EBIT Next Year61.97%
EBIT Next 3Y35.32%
EBIT Next 5YN/A
FCF growth 1Y51.74%
FCF growth 3Y54.79%
FCF growth 5Y73.2%
OCF growth 1Y38.71%
OCF growth 3Y46.25%
OCF growth 5Y63.84%