STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
NASDAQ:STRL - Nasdaq - US8592411016 - Common Stock - Currency: USD
STRL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 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 is not valued too expensively and it also shows a decent growth rate. This makes STRL very considerable 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.
Each year in the past 5 years STRL has been profitable.
In the past 5 years STRL always reported a positive cash flow from operatings.
1.2 Ratios
STRL's Return On Assets of 13.07% is amongst the best of the industry. STRL outperforms 92.31% of its industry peers.
With an excellent Return On Equity value of 33.01%, STRL belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.44%, STRL belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STRL is below the industry average of 16.67%.
The last Return On Invested Capital (16.44%) for STRL is above the 3 year average (13.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.07% | ||
| ROE | 33.01% | ||
| ROIC | 16.44% |
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 (12.62%) is better than 94.23% of its industry peers.
STRL's Profit Margin has improved in the last couple of years.
STRL has a Operating Margin of 13.25%. This is amongst the best in the industry. STRL outperforms 92.31% 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 21.08%, STRL is doing good in the industry, outperforming 67.31% of the companies in the same industry.
STRL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.25% | ||
| PM (TTM) | 12.62% | ||
| GM | 21.08% |
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.
The debt/assets ratio for STRL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.36 indicates that STRL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.36, STRL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of STRL is 0.68, which is an excellent value as it means it would take STRL, only 0.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.68, STRL belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that STRL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.35, STRL is doing good in the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 5.36 |
ROIC/WACC1.63
WACC10.09%
2.3 Liquidity
STRL has a Current Ratio of 1.32. 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 1.32 is in line compared to the rest of the industry. STRL outperforms 59.62% of its industry peers.
STRL has a Quick Ratio of 1.32. 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 1.32 is fine compared to the rest of the industry. STRL outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
STRL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.93%, 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 4.85% in the past year.
The Revenue has been growing by 13.44% on average over the past years. This is quite good.
EPS 1Y (TTM)77.93%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%28%
Revenue 1Y (TTM)4.85%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%-2.14%
3.2 Future
STRL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.82% yearly.
Based on estimates for the next years, STRL will show a small growth in Revenue. The Revenue will grow by 2.03% on average per year.
EPS Next Y-9.66%
EPS Next 2Y1.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.19%
Revenue Next 2Y2.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
STRL is valuated quite expensively with a Price/Earnings ratio of 26.72.
STRL's Price/Earnings ratio is a bit cheaper when compared to the industry. STRL is cheaper than 63.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of STRL to the average of the S&P500 Index (27.28), we can say STRL is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.64, STRL can be considered very expensive at the moment.
STRL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, STRL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 26.64 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STRL indicates a rather cheap valuation: STRL is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 18.49 |
4.3 Compensation for Growth
STRL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y1.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for STRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
228.72
+6.18 (+2.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners91.46%
Inst Owner Change0.1%
Ins Owners2.98%
Ins Owner Change1.64%
Market Cap6.96B
Analysts86.67
Price Target261.46 (14.31%)
Short Float %9.13%
Short Ratio4.59
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)84.26%
Min EPS beat(2)-0.31%
Max EPS beat(2)168.82%
EPS beat(4)3
Avg EPS beat(4)49.07%
Min EPS beat(4)-0.31%
Max EPS beat(4)168.82%
EPS beat(8)6
Avg EPS beat(8)35.34%
EPS beat(12)10
Avg EPS beat(12)30.72%
EPS beat(16)14
Avg EPS beat(16)31.11%
Revenue beat(2)1
Avg Revenue beat(2)-2.33%
Min Revenue beat(2)-7.94%
Max Revenue beat(2)3.29%
Revenue beat(4)2
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)3.29%
Revenue beat(8)4
Avg Revenue beat(8)-1.5%
Revenue beat(12)5
Avg Revenue beat(12)-4.34%
Revenue beat(16)6
Avg Revenue beat(16)-4.78%
PT rev (1m)29.24%
PT rev (3m)29.24%
EPS NQ rev (1m)2.41%
EPS NQ rev (3m)7.11%
EPS NY rev (1m)3.8%
EPS NY rev (3m)12.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 26.64 | ||
| P/S | 3.3 | ||
| P/FCF | 15.25 | ||
| P/OCF | 13.06 | ||
| P/B | 8.64 | ||
| P/tB | 36.99 | ||
| EV/EBITDA | 18.49 |
EPS(TTM)8.56
EY3.74%
EPS(NY)8.58
Fwd EY3.75%
FCF(TTM)14.99
FCFY6.56%
OCF(TTM)17.51
OCFY7.65%
SpS69.26
BVpS26.49
TBVpS6.18
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.07% | ||
| ROE | 33.01% | ||
| ROCE | 21.85% | ||
| ROIC | 16.44% | ||
| ROICexc | 32.88% | ||
| ROICexgc | 965.44% | ||
| OM | 13.25% | ||
| PM (TTM) | 12.62% | ||
| GM | 21.08% | ||
| FCFM | 21.65% |
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%
ROICexcg growth 3Y175.97%
ROICexcg 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 Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 110.56% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 152.86% | ||
| Profit Quality | 171.48% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 5.36 |
F-Score7
WACC10.09%
ROIC/WACC1.63
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)77.93%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%28%
EPS Next Y-9.66%
EPS Next 2Y1.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.85%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%-2.14%
Revenue Next Year-3.19%
Revenue Next 2Y2.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y29.2%
EBIT growth 3Y33.7%
EBIT growth 5Y44.55%
EBIT Next Year59.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y151.21%
FCF growth 3Y54.79%
FCF growth 5Y73.2%
OCF growth 1Y120.36%
OCF growth 3Y46.25%
OCF growth 5Y63.84%