STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
377.84 USD
-10.84 (-2.79%)
377.84 USD
0 (0%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. STRL is valued quite expensive, but it does show an excellent growth. With these ratings, STRL could be worth investigating further for growth and 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
Looking at the Return On Assets, with a value of 13.19%, STRL belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
STRL has a better Return On Equity (32.32%) than 83.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.29%, STRL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STRL is below the industry average of 17.19%.
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's Profit Margin of 13.33% is amongst the best of the industry. STRL outperforms 90.91% 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 94.55% of its industry peers.
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 67.27% 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
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
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 7.70 indicates that STRL is not in any danger for bankruptcy at the moment.
The Altman-Z score of STRL (7.70) is better than 87.27% of its industry peers.
STRL has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
STRL has a better Debt to FCF ratio (0.68) than 87.27% 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.
The Debt to Equity ratio of STRL (0.32) is better than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 7.7 |
ROIC/WACC1.65
WACC10.47%
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.
STRL's Current ratio of 1.42 is fine compared to the rest of the industry. STRL outperforms 67.27% of its industry peers.
STRL has a Quick 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.
STRL's Quick ratio of 1.42 is fine compared to the rest of the industry. STRL outperforms 72.73% 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 80.91% 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.
STRL shows a small growth in Revenue. In the last year, the Revenue has grown by 7.28%.
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)80.91%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%76.65%
Revenue 1Y (TTM)7.28%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%16.05%
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 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
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
The Price/Earnings ratio is 35.28, which means the current valuation is very expensive for STRL.
STRL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.67, STRL is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 38.24, the valuation of STRL can be described as expensive.
STRL's Price/Forward Earnings is on the same level as the industry average.
STRL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.28 | ||
| Fwd PE | 38.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STRL.
Based on the Price/Free Cash Flow ratio, STRL is valued a bit cheaper than 67.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.62 | ||
| EV/EBITDA | 30.1 |
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 13.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.65
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 |
377.84
-10.84 (-2.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.01%
Inst Owner Change-2.87%
Ins Owners2.12%
Ins Owner Change-0.06%
Market Cap11.60B
Revenue(TTM)2.12B
Net Income(TTM)285.00M
Analysts84
Price Target360.32 (-4.64%)
Short Float %10.62%
Short Ratio6.51
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)0%
EPS NQ rev (3m)4.51%
EPS NY rev (1m)0%
EPS NY rev (3m)10.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.28 | ||
| Fwd PE | 38.24 | ||
| P/S | 5.43 | ||
| P/FCF | 26.62 | ||
| P/OCF | 23.35 | ||
| P/B | 13.16 | ||
| P/tB | 43.15 | ||
| EV/EBITDA | 30.1 |
EPS(TTM)10.71
EY2.83%
EPS(NY)9.88
Fwd EY2.62%
FCF(TTM)14.2
FCFY3.76%
OCF(TTM)16.18
OCFY4.28%
SpS69.62
BVpS28.71
TBVpS8.76
PEG (NY)N/A
PEG (5Y)0.65
Graham Number83.18
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%
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-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 | 7.7 |
F-Score8
WACC10.47%
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)80.91%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%76.65%
EPS Next Y-0.19%
EPS Next 2Y9.24%
EPS Next 3Y13.38%
EPS Next 5YN/A
Revenue 1Y (TTM)7.28%
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 1Y37.15%
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%
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 35.28 and the Price/Book (PB) ratio is 13.16.
How financially healthy is STERLING INFRASTRUCTURE INC?
The financial health rating of STERLING INFRASTRUCTURE INC (STRL) is 7 / 10.