STERLING INFRASTRUCTURE INC (STRL)
US8592411016 - Common Stock
STRL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 44 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making STRL a very profitable company, without any liquidiy or solvency issues. STRL has a decent growth rate and is not valued too expensively. With these ratings, STRL could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year STRL was profitable.
STRL had a positive operating cash flow in the past year.
STRL had positive earnings in each of the past 5 years.
Each year in the past 5 years STRL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.11%, STRL belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
STRL's Return On Equity of 25.74% is amongst the best of the industry. STRL outperforms 90.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.86%, STRL belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STRL is in line with the industry average of 9.74%.
The last Return On Invested Capital (15.86%) for STRL is above the 3 year average (11.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 25.74% | ||
| ROIC | 15.86% |
ROA(3y)6.75%
ROA(5y)5.79%
ROE(3y)20.76%
ROE(5y)19.25%
ROIC(3y)11.5%
ROIC(5y)9.97%
1.3 Margins
With an excellent Profit Margin value of 8.77%, STRL belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
STRL's Profit Margin has improved in the last couple of years.
The Operating Margin of STRL (12.31%) is better than 93.02% of its industry peers.
STRL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.55%, STRL perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
STRL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.31% | ||
| PM (TTM) | 8.77% | ||
| GM | 19.55% |
OM growth 3Y11.15%
OM growth 5Y20.61%
PM growth 3Y26.8%
PM growth 5Y23.69%
GM growth 3Y5.35%
GM growth 5Y10%
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 more shares outstanding
STRL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STRL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.70 indicates that STRL is not in any danger for bankruptcy at the moment.
STRL has a Altman-Z score of 4.70. This is in the better half of the industry: STRL outperforms 72.09% of its industry peers.
STRL has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
STRL has a better Debt to FCF ratio (0.83) than 88.37% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that STRL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.41, STRL is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.49
WACC10.66%
2.3 Liquidity
STRL has a Current Ratio of 1.29. This is a normal value and indicates that STRL is financially healthy and should not expect problems in meeting its short term obligations.
STRL has a Current ratio of 1.29. This is in the lower half of the industry: STRL underperforms 60.47% of its industry peers.
A Quick Ratio of 1.29 indicates that STRL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.29, STRL is in line with its industry, outperforming 44.19% 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 | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
STRL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.92%, which is quite impressive.
STRL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.77% yearly.
STRL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.29%.
Measured over the past years, STRL shows a quite strong growth in Revenue. The Revenue has been growing by 13.70% on average per year.
EPS 1Y (TTM)40.92%
EPS 3Y43.07%
EPS 5Y36.77%
EPS Q2Q%56.23%
Revenue 1Y (TTM)18.29%
Revenue growth 3Y17.15%
Revenue growth 5Y13.7%
Sales Q2Q%5.96%
3.2 Future
The Earnings Per Share is expected to grow by 15.36% on average over the next years. This is quite good.
STRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.83% yearly.
EPS Next Y31.63%
EPS Next 2Y19.31%
EPS Next 3Y15.36%
EPS Next 5YN/A
Revenue Next Year7.47%
Revenue Next 2Y7.07%
Revenue Next 3Y7.83%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.19, STRL can be considered very expensive at the moment.
60.47% of the companies in the same industry are more expensive than STRL, based on the Price/Earnings ratio.
STRL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 31.02, STRL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, STRL is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
STRL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.19 | ||
| Fwd PE | 31.02 |
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 76.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.48 | ||
| EV/EBITDA | 17.61 |
4.3 Compensation for Growth
STRL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
STRL has an outstanding profitability rating, which may justify a higher PE ratio.
STRL's earnings are expected to grow with 15.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)0.9
EPS Next 2Y19.31%
EPS Next 3Y15.36%
5. Dividend
5.1 Amount
No dividends for STRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STERLING INFRASTRUCTURE INC
NASDAQ:STRL (11/22/2024, 8:06:48 PM)
After market: 196.51 0 (0%)196.51
-0.9 (-0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.19 | ||
| Fwd PE | 31.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.05
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 25.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.31% | ||
| PM (TTM) | 8.77% | ||
| GM | 19.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)40.92%
EPS 3Y43.07%
EPS 5Y
EPS Q2Q%
EPS Next Y31.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.29%
Revenue growth 3Y17.15%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y