STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
333.88 USD
+1.06 (+0.32%)
333.62 USD
-0.26 (-0.08%)
Taking everything into account, STRL scores 7 out of 10 in our fundamental rating. STRL was compared to 55 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 shows excellent growth, but is valued quite expensive already. This makes STRL very considerable for growth and quality investing!
1. Profitability
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 12.32%. This is amongst the best in the industry. STRL outperforms 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 30.04%, STRL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
STRL has a Return On Invested Capital of 16.82%. This is amongst the best in the industry. STRL outperforms 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
The Profit Margin of STRL (14.14%) is better than 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.
In the last couple of years the Operating Margin of STRL has grown nicely.
With a decent Gross Margin value of 23.05%, STRL is doing good in the industry, outperforming 69.09% of the companies in the same industry.
STRL's Gross Margin has improved in the last couple of years.
| 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
STRL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
STRL has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 5.82 indicates that STRL is not in any danger for bankruptcy at the moment.
STRL has a Altman-Z score of 5.82. 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.
The Debt to FCF ratio of STRL (0.81) is better than 85.45% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that STRL is not too dependend on debt financing.
STRL's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. STRL outperforms 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 5.82 |
ROIC/WACC1.65
WACC10.19%
2.3 Liquidity
A Current Ratio of 1.00 indicates that STRL may have some problems paying its short term obligations.
STRL has a Current ratio of 1.00. This is in the lower half of the industry: STRL underperforms 70.91% of its industry peers.
A Quick Ratio of 1.00 indicates that STRL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, STRL is doing worse than 69.09% 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 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
STRL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.30%, which is quite impressive.
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 6.20% 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)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
Based on estimates for the next years, STRL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.38% on average per year.
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-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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 32.73 indicates a quite expensive valuation of STRL.
Compared to the rest of the industry, the Price/Earnings ratio of STRL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.51. STRL is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 33.79, which means the current valuation is very expensive for STRL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STRL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, STRL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.73 | ||
| Fwd PE | 33.79 |
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.
63.64% 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 | 28.35 | ||
| EV/EBITDA | 23.81 |
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 |
333.88
+1.06 (+0.32%)
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 Cap10.25B
Revenue(TTM)2.23B
Net Income(TTM)315.77M
Analysts84
Price Target360.32 (7.92%)
Short Float %10.06%
Short Ratio4.42
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 | 32.73 | ||
| Fwd PE | 33.79 | ||
| P/S | 4.59 | ||
| P/FCF | 28.35 | ||
| P/OCF | 23.95 | ||
| P/B | 9.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.81 |
EPS(TTM)10.2
EY3.05%
EPS(NY)9.88
Fwd EY2.96%
FCF(TTM)11.78
FCFY3.53%
OCF(TTM)13.94
OCFY4.18%
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 | 5.82 |
F-Score7
WACC10.19%
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 32.73 and the Price/Book (PB) ratio is 9.75.
How financially healthy is STERLING INFRASTRUCTURE INC?
The financial health rating of STERLING INFRASTRUCTURE INC (STRL) is 7 / 10.