351.39 USD
-12.86 (-3.53%)
350 USD
-1.39 (-0.4%)
Overall STRL gets a fundamental rating of 7 out of 10. We evaluated STRL against 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. 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.
- STRL had positive earnings in each of the past 5 years.
- STRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- STRL has a better Return On Assets (12.32%) than 81.82% of its industry peers.
- The Return On Equity of STRL (30.04%) is better than 80.00% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for STRL is in line with the industry average of 15.97%.
- The last Return On Invested Capital (16.82%) for STRL is above the 3 year average (13.99%), which is a sign of increasing profitability.
| 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's Profit Margin of 14.14% is amongst the best of the industry. STRL outperforms 92.73% of its industry peers.
- STRL's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 15.96%, STRL belongs to the top of the industry, outperforming 92.73% 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 23.05% is fine compared to the rest of the industry. STRL outperforms 69.09% of its industry peers.
- 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
- 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 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 6.04. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
- STRL has a better Altman-Z score (6.04) than 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's Debt to FCF ratio of 0.81 is amongst the best of the industry. STRL outperforms 85.45% of its industry peers.
- A Debt/Equity ratio of 0.27 indicates that STRL is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.27, STRL is doing good in the industry, outperforming 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.04 |
ROIC/WACC1.67
WACC10.08%
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.
- Looking at the Current ratio, with a value of 1.00, STRL is doing worse than 70.91% of the companies in the same industry.
- A Quick Ratio of 1.00 indicates that STRL may have some problems paying its short term obligations.
- STRL has a worse Quick ratio (1.00) than 70.91% 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
- 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.
- Measured over the past years, STRL shows a very strong growth in Earnings Per Share. The EPS has been growing by 54.19% on average per year.
- 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
- Based on estimates for the next years, STRL will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.74% on average per year.
- STRL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.17% yearly.
EPS Next Y8.03%
EPS Next 2Y13.65%
EPS Next 3Y17.74%
EPS Next 5YN/A
Revenue Next Year10.82%
Revenue Next 2Y14.87%
Revenue Next 3Y13.17%
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
- Based on the Price/Earnings ratio of 34.45, the valuation of STRL can be described as expensive.
- STRL's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. STRL is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 32.85 indicates a quite expensive valuation of STRL.
- STRL's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. STRL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.45 | ||
| Fwd PE | 32.85 |
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 69.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.85 | ||
| EV/EBITDA | 25.14 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates STRL does not grow enough to justify the current Price/Earnings ratio.
- 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 17.74% in the coming years.
PEG (NY)4.29
PEG (5Y)0.64
EPS Next 2Y13.65%
EPS Next 3Y17.74%
5. Dividend
5.1 Amount
- STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
Can you provide the valuation status for STERLING INFRASTRUCTURE INC?
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 34.45 and the Price/Book (PB) ratio is 10.27.