STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
315.1 USD
+0.54 (+0.17%)
315.1 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 gets an excellent profitability rating and is at the same time showing great financial health properties. STRL is valued quite expensive, but it does show an excellent growth. This makes STRL very considerable 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.
STRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.32%, STRL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
STRL has a Return On Equity of 30.04%. This is amongst the best in the industry. STRL outperforms 81.82% of its industry peers.
STRL's Return On Invested Capital of 16.82% is amongst the best of 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 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
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.
STRL has a Operating Margin of 15.96%. This is amongst the best in the industry. STRL outperforms 94.55% of its industry peers.
In the last couple of years the Operating Margin of STRL has grown nicely.
Looking at the Gross Margin, with a value of 23.05%, STRL is in the better half of 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STRL is still creating some value.
The number of shares outstanding for STRL has been reduced compared to 1 year ago.
The number of shares outstanding for STRL has been increased compared to 5 years ago.
STRL has a better debt/assets ratio than last year.
2.2 Solvency
STRL has an Altman-Z score of 5.59. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of STRL (5.59) is better than 78.18% 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 has a better Debt to FCF ratio (0.81) than 85.45% of its industry peers.
STRL has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
STRL has a Debt to Equity ratio of 0.27. This is in the better half 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 | 5.59 |
ROIC/WACC1.65
WACC10.2%
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.
With a Current ratio value of 1.00, STRL is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
STRL has a Quick 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.
STRL has a Quick ratio of 1.00. This is in the lower half of the industry: STRL underperforms 69.09% 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.
The Earnings Per Share has been growing by 54.19% on average over the past years. This is a very strong growth
Looking at the last year, STRL shows a small growth in Revenue. The Revenue has grown by 6.20% in the last 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)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.
STRL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.23% yearly.
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 30.89, which means the current valuation is very expensive for 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 25.07, which is the current average of the S&P500 Index.
STRL is valuated quite expensively with a Price/Forward Earnings ratio of 31.89.
STRL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, STRL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.89 | ||
| Fwd PE | 31.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STRL.
STRL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STRL is cheaper than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.76 | ||
| EV/EBITDA | 22.5 |
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)0.57
EPS Next 2Y9.24%
EPS Next 3Y13.38%
5. Dividend
5.1 Amount
STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
315.1
+0.54 (+0.17%)
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 Cap9.68B
Revenue(TTM)2.23B
Net Income(TTM)315.77M
Analysts84
Price Target360.32 (14.35%)
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 | 30.89 | ||
| Fwd PE | 31.89 | ||
| P/S | 4.33 | ||
| P/FCF | 26.76 | ||
| P/OCF | 22.6 | ||
| P/B | 9.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.5 |
EPS(TTM)10.2
EY3.24%
EPS(NY)9.88
Fwd EY3.14%
FCF(TTM)11.78
FCFY3.74%
OCF(TTM)13.94
OCFY4.43%
SpS72.72
BVpS34.23
TBVpS-2.97
PEG (NY)N/A
PEG (5Y)0.57
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 | 5.59 |
F-Score7
WACC10.2%
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 30.89 and the Price/Book (PB) ratio is 9.21.
How financially healthy is STERLING INFRASTRUCTURE INC?
The financial health rating of STERLING INFRASTRUCTURE INC (STRL) is 7 / 10.