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STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis

NASDAQ:STRL - Nasdaq - US8592411016 - Common Stock - Currency: USD

140.27  -0.17 (-0.12%)

After market: 140.27 0 (0%)

Fundamental Rating

6

STRL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 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 has a correct valuation and a medium growth rate. These ratings would make STRL suitable for quality investing!


Dividend Valuation Growth Profitability Health

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9

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.
In the past 5 years STRL has always been profitable.
STRL had a positive operating cash flow in each of the past 5 years.
STRL Yearly Net Income VS EBIT VS OCF VS FCFSTRL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

1.2 Ratios

STRL has a Return On Assets of 12.77%. This is amongst the best in the industry. STRL outperforms 90.20% of its industry peers.
STRL has a Return On Equity of 31.86%. This is amongst the best in the industry. STRL outperforms 86.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.65%, STRL belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STRL is in line with the industry average of 12.16%.
The last Return On Invested Capital (15.65%) for STRL is above the 3 year average (13.99%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 12.77%
ROE 31.86%
ROIC 15.65%
ROA(3y)9.32%
ROA(5y)7.49%
ROE(3y)25.57%
ROE(5y)22%
ROIC(3y)13.99%
ROIC(5y)12.52%
STRL Yearly ROA, ROE, ROICSTRL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

STRL's Profit Margin of 12.17% is amongst the best of the industry. STRL outperforms 92.16% 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 12.53%, STRL belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
STRL's Operating Margin has improved in the last couple of years.
STRL's Gross Margin of 20.14% is fine compared to the rest of the industry. STRL outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of STRL has grown nicely.
Industry RankSector Rank
OM 12.53%
PM (TTM) 12.17%
GM 20.14%
OM growth 3Y16.9%
OM growth 5Y27.42%
PM growth 3Y40.09%
PM growth 5Y27.99%
GM growth 3Y11.86%
GM growth 5Y16.04%
STRL Yearly Profit, Operating, Gross MarginsSTRL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15 20

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7

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
STRL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STRL has an improved debt to assets ratio.
STRL Yearly Shares OutstandingSTRL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
STRL Yearly Total Debt VS Total AssetsSTRL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

STRL has an Altman-Z score of 4.17. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.17, STRL is doing good in the industry, outperforming 74.51% of the companies in the same industry.
The Debt to FCF ratio of STRL is 0.76, which is an excellent value as it means it would take STRL, only 0.76 years of fcf income to pay off all of its debts.
STRL has a better Debt to FCF ratio (0.76) than 88.24% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that STRL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.36, STRL is doing good in the industry, outperforming 64.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 0.76
Altman-Z 4.17
ROIC/WACC1.73
WACC9.04%
STRL Yearly LT Debt VS Equity VS FCFSTRL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.38 indicates that STRL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, STRL perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
STRL has a Quick Ratio of 1.38. 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 better Quick ratio (1.38) than 64.71% of its industry peers.
Industry RankSector Rank
Current Ratio 1.38
Quick Ratio 1.38
STRL Yearly Current Assets VS Current LiabilitesSTRL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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5

3. Growth

3.1 Past

STRL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.03%, 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
The Revenue has been growing slightly by 7.28% in the past year.
STRL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.44% yearly.
EPS 1Y (TTM)86.03%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%184.38%
Revenue 1Y (TTM)7.28%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%2.65%

3.2 Future

Based on estimates for the next years, STRL will show a small growth in Earnings Per Share. The EPS will grow by 1.13% on average per year.
STRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.64% yearly.
EPS Next Y-10.41%
EPS Next 2Y1.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.07%
Revenue Next 2Y0.64%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
STRL Yearly Revenue VS EstimatesSTRL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
STRL Yearly EPS VS EstimatesSTRL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.94 indicates a correct valuation of STRL.
Based on the Price/Earnings ratio, STRL is valued cheaply inside the industry as 80.39% of the companies are valued more expensively.
STRL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 18.91, STRL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STRL indicates a somewhat cheap valuation: STRL is cheaper than 60.78% of the companies listed in the same industry.
STRL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.94
Fwd PE 18.91
STRL Price Earnings VS Forward Price EarningsSTRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

STRL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STRL is cheaper than 64.71% of the companies in the same industry.
STRL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STRL is cheaper than 86.27% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.25
EV/EBITDA 11.75
STRL Per share dataSTRL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

STRL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y1.13%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

STRL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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STERLING INFRASTRUCTURE INC

NASDAQ:STRL (4/17/2025, 8:00:00 PM)

After market: 140.27 0 (0%)

140.27

-0.17 (-0.12%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)02-25 2025-02-25/amc
Earnings (Next)05-05 2025-05-05/amc
Inst Owners89.24%
Inst Owner Change0.16%
Ins Owners2.83%
Ins Owner Change1.89%
Market Cap4.27B
Analysts86.67
Price Target202.3 (44.22%)
Short Float %5.94%
Short Ratio2.77
Dividend
Industry RankSector 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)90.75%
Min EPS beat(2)12.68%
Max EPS beat(2)168.82%
EPS beat(4)4
Avg EPS beat(4)55.98%
Min EPS beat(4)12.68%
Max EPS beat(4)168.82%
EPS beat(8)7
Avg EPS beat(8)36.77%
EPS beat(12)11
Avg EPS beat(12)35.15%
EPS beat(16)15
Avg EPS beat(16)35.63%
Revenue beat(2)0
Avg Revenue beat(2)-6.54%
Min Revenue beat(2)-7.94%
Max Revenue beat(2)-5.14%
Revenue beat(4)2
Avg Revenue beat(4)-1.76%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)4.58%
Revenue beat(8)4
Avg Revenue beat(8)-1.25%
Revenue beat(12)4
Avg Revenue beat(12)-4.95%
Revenue beat(16)6
Avg Revenue beat(16)-4.93%
PT rev (1m)0%
PT rev (3m)13.77%
EPS NQ rev (1m)6.34%
EPS NQ rev (3m)25.37%
EPS NY rev (1m)12.03%
EPS NY rev (3m)12.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-12.13%
Valuation
Industry RankSector Rank
PE 16.94
Fwd PE 18.91
P/S 2.02
P/FCF 10.25
P/OCF 8.58
P/B 5.28
P/tB 18.79
EV/EBITDA 11.75
EPS(TTM)8.28
EY5.9%
EPS(NY)7.42
Fwd EY5.29%
FCF(TTM)13.68
FCFY9.75%
OCF(TTM)16.34
OCFY11.65%
SpS69.55
BVpS26.56
TBVpS7.47
PEG (NY)N/A
PEG (5Y)0.31
Profitability
Industry RankSector Rank
ROA 12.77%
ROE 31.86%
ROCE 20.79%
ROIC 15.65%
ROICexc 32.67%
ROICexgc 673.28%
OM 12.53%
PM (TTM) 12.17%
GM 20.14%
FCFM 19.67%
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-Score8
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 0.76
Debt/EBITDA 0.87
Cap/Depr 118.34%
Cap/Sales 3.83%
Interest Coverage 11.33
Cash Conversion 149.08%
Profit Quality 161.64%
Current Ratio 1.38
Quick Ratio 1.38
Altman-Z 4.17
F-Score8
WACC9.04%
ROIC/WACC1.73
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)86.03%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%184.38%
EPS Next Y-10.41%
EPS Next 2Y1.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.28%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%2.65%
Revenue Next Year-6.07%
Revenue Next 2Y0.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.23%
EBIT growth 3Y33.7%
EBIT growth 5Y44.55%
EBIT Next Year55.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.47%
FCF growth 3Y54.79%
FCF growth 5Y73.2%
OCF growth 1Y3.87%
OCF growth 3Y46.25%
OCF growth 5Y63.84%