STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
355.58 USD
-5.44 (-1.51%)
357.408 USD
+1.83 (+0.51%)
We assign a fundamental rating of 7 out of 10 to STRL. STRL was compared to 54 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.
Each year in the past 5 years STRL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STRL (13.19%) is better than 85.19% of its industry peers.
Looking at the Return On Equity, with a value of 32.32%, STRL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.29%, STRL belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
STRL had an Average Return On Invested Capital over the past 3 years of 13.99%. This is below the industry average of 17.10%.
The 3 year average ROIC (13.99%) for STRL is below the current ROIC(17.29%), indicating increased profibility in the last year.
| 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 90.74% of its industry peers.
STRL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.66%, STRL belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Operating Margin of STRL has grown nicely.
STRL's Gross Margin of 22.19% is fine compared to the rest of the industry. STRL outperforms 68.52% of its industry peers.
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
The number of shares outstanding for STRL has been increased compared to 5 years ago.
Compared to 1 year ago, STRL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.30 indicates that STRL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.30, STRL belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
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 has a Debt to FCF ratio of 0.68. This is amongst the best in the industry. STRL outperforms 88.89% 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.
STRL has a better Debt to Equity ratio (0.32) than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 7.3 |
ROIC/WACC1.54
WACC11.19%
2.3 Liquidity
A Current Ratio of 1.42 indicates that STRL should not have too much problems paying its short term obligations.
STRL has a Current ratio of 1.42. This is in the better half of the industry: STRL outperforms 66.67% of its industry peers.
A Quick Ratio of 1.42 indicates that STRL should not have too much problems paying its short term obligations.
STRL has a Quick ratio of 1.42. This is in the better half of the industry: STRL outperforms 72.22% of its industry peers.
| 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.
STRL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.19% yearly.
The Revenue has been growing slightly by 3.31% in the past year.
Measured over the past years, STRL shows a quite strong growth in Revenue. The Revenue has been growing by 13.44% on average per year.
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 13.38% yearly.
The Revenue is expected to grow by 11.23% on average over the next years. This is quite good.
EPS Next Y-0.19%
EPS Next 2Y8.98%
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
A Price/Earnings ratio of 38.65 indicates a quite expensive valuation of STRL.
STRL's Price/Earnings is on the same level as the industry average.
STRL is valuated rather expensively when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 36.16, the valuation of STRL can be described as expensive.
STRL's Price/Forward Earnings is on the same level as the industry average.
STRL is valuated expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.65 | ||
| Fwd PE | 36.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STRL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STRL indicates a somewhat cheap valuation: STRL is cheaper than 68.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.05 | ||
| EV/EBITDA | 27.89 |
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)0.71
EPS Next 2Y8.98%
EPS Next 3Y13.38%
5. Dividend
5.1 Amount
STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
355.58
-5.44 (-1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.01%
Inst Owner Change0.03%
Ins Owners2.12%
Ins Owner Change-0.06%
Market Cap10.92B
Analysts84
Price Target360.32 (1.33%)
Short Float %9.18%
Short Ratio5.14
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)-0.49%
PT rev (3m)37.81%
EPS NQ rev (1m)-1.51%
EPS NQ rev (3m)4.51%
EPS NY rev (1m)4.08%
EPS NY rev (3m)10.49%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)8.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.65 | ||
| Fwd PE | 36.16 | ||
| P/S | 5.11 | ||
| P/FCF | 25.05 | ||
| P/OCF | 21.98 | ||
| P/B | 12.38 | ||
| P/tB | 40.61 | ||
| EV/EBITDA | 27.89 |
EPS(TTM)9.2
EY2.59%
EPS(NY)9.83
Fwd EY2.77%
FCF(TTM)14.2
FCFY3.99%
OCF(TTM)16.18
OCFY4.55%
SpS69.62
BVpS28.71
TBVpS8.76
PEG (NY)N/A
PEG (5Y)0.71
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 | 7.3 |
F-Score8
WACC11.19%
ROIC/WACC1.54
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-0.19%
EPS Next 2Y8.98%
EPS Next 3Y13.38%
EPS Next 5YN/A
Revenue 1Y (TTM)3.31%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%5.43%
Revenue Next Year4.97%
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 Year77.29%
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%