STERLING INFRASTRUCTURE INC (STRL)
US8592411016 - Common Stock
Taking everything into account, STRL scores 7 out of 10 in our fundamental rating. STRL was compared to 45 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. These ratings would make STRL suitable 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.
In the past 5 years STRL has always been profitable.
In the past 5 years STRL always reported a positive cash flow from operatings.
1.2 Ratios
STRL has a Return On Assets of 9.11%. This is amongst the best in the industry. STRL outperforms 88.64% of its industry peers.
STRL's Return On Equity of 25.74% is amongst the best of the industry. STRL outperforms 88.64% 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 88.64% 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 11.52%.
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
STRL has a Profit Margin of 8.77%. This is amongst the best in the industry. STRL outperforms 97.73% of its industry peers.
STRL's Profit Margin has improved in the last couple of years.
The Operating Margin of STRL (12.31%) is better than 95.45% of its industry peers.
STRL's Operating Margin has improved in the last couple of years.
STRL's Gross Margin of 19.55% is in line compared to the rest of the industry. STRL outperforms 56.82% of its industry peers.
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
STRL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
STRL has more shares outstanding than it did 1 year ago.
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 4.40 indicates that STRL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.40, STRL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of STRL is 0.83, which is an excellent value as it means it would take STRL, only 0.83 years of fcf income to pay off all of its debts.
STRL's Debt to FCF ratio of 0.83 is amongst the best of the industry. STRL outperforms 88.64% of its industry peers.
STRL has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
STRL has a better Debt to Equity ratio (0.41) than 65.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 4.4 |
ROIC/WACC1.5
WACC10.57%
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 comparable to the rest of the industry: STRL outperforms 40.91% of its industry peers.
A Quick Ratio of 1.29 indicates that STRL should not have too much problems paying its short term obligations.
The Quick ratio of STRL (1.29) is comparable to the rest of the industry.
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 | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.92% over the past year.
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 18.41% on average over the next years. This is quite good.
Based on estimates for the next years, STRL will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
EPS Next Y36.26%
EPS Next 2Y21.97%
EPS Next 3Y18.41%
EPS Next 5YN/A
Revenue Next Year6.88%
Revenue Next 2Y6.91%
Revenue Next 3Y7.39%
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
Based on the Price/Earnings ratio of 29.90, the valuation of STRL can be described as expensive.
STRL's Price/Earnings ratio is a bit cheaper when compared to the industry. STRL is cheaper than 61.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. STRL is around the same levels.
The Price/Forward Earnings ratio is 26.73, which means the current valuation is very expensive for STRL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STRL is on the same level as its industry peers.
STRL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.9 | ||
| Fwd PE | 26.73 |
4.2 Price Multiples
STRL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, STRL is valued a bit cheaper than 79.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.95 | ||
| EV/EBITDA | 15.56 |
4.3 Compensation for Growth
STRL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 18.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)0.81
EPS Next 2Y21.97%
EPS Next 3Y18.41%
5. Dividend
5.1 Amount
STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STERLING INFRASTRUCTURE INC
NASDAQ:STRL (12/26/2024, 8:00:01 PM)
After market: 177.03 0 (0%)177.03
+2.14 (+1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.09%
Inst Owner Change1.73%
Ins Owners2.97%
Ins Owner Change0.86%
Market Cap5.44B
Analysts82.5
Price Target177.82 (0.45%)
Short Float %3.54%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)13.88%
Min EPS beat(2)12.68%
Max EPS beat(2)15.08%
EPS beat(4)4
Avg EPS beat(4)20.18%
Min EPS beat(4)12.68%
Max EPS beat(4)27.32%
EPS beat(8)7
Avg EPS beat(8)21.85%
EPS beat(12)11
Avg EPS beat(12)23.13%
EPS beat(16)14
Avg EPS beat(16)24.04%
Revenue beat(2)1
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-5.14%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-8.81%
Max Revenue beat(4)4.58%
Revenue beat(8)4
Avg Revenue beat(8)-4.59%
Revenue beat(12)4
Avg Revenue beat(12)-6.97%
Revenue beat(16)6
Avg Revenue beat(16)-8.04%
PT rev (1m)23.35%
PT rev (3m)23.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.44%
EPS NY rev (1m)3.52%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.9 | ||
| Fwd PE | 26.73 | ||
| P/S | 2.59 | ||
| P/FCF | 13.95 | ||
| P/OCF | 11.56 | ||
| P/B | 7.59 | ||
| P/tB | 45.45 | ||
| EV/EBITDA | 15.56 |
EPS(TTM)5.92
EY3.34%
EPS(NY)6.62
Fwd EY3.74%
FCF(TTM)12.69
FCFY7.17%
OCF(TTM)15.31
OCFY8.65%
SpS68.48
BVpS23.33
TBVpS3.9
PEG (NY)0.82
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 25.74% | ||
| ROCE | 21.85% | ||
| ROIC | 15.86% | ||
| ROICexc | 35.03% | ||
| ROICexgc | N/A | ||
| OM | 12.31% | ||
| PM (TTM) | 8.77% | ||
| GM | 19.55% | ||
| FCFM | 18.53% |
ROA(3y)6.75%
ROA(5y)5.79%
ROE(3y)20.76%
ROE(5y)19.25%
ROIC(3y)11.5%
ROIC(5y)9.97%
ROICexc(3y)16.02%
ROICexc(5y)13%
ROICexgc(3y)304.54%
ROICexgc(5y)196.86%
ROCE(3y)15.84%
ROCE(5y)13.73%
ROICexcg growth 3Y150.49%
ROICexcg growth 5Y85.72%
ROICexc growth 3Y25.71%
ROICexc growth 5Y10.11%
OM growth 3Y11.15%
OM growth 5Y20.61%
PM growth 3Y26.8%
PM growth 5Y23.69%
GM growth 3Y5.35%
GM growth 5Y10%
F-Score8
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 122.98% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 145% | ||
| Profit Quality | 211.33% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.4 |
F-Score8
WACC10.57%
ROIC/WACC1.5
Cap/Depr(3y)121.86%
Cap/Depr(5y)108.06%
Cap/Sales(3y)3.34%
Cap/Sales(5y)2.81%
Profit Quality(3y)208.84%
Profit Quality(5y)181.24%
High Growth Momentum
Growth
EPS 1Y (TTM)40.92%
EPS 3Y43.07%
EPS 5Y36.77%
EPS Q2Q%56.23%
EPS Next Y36.26%
EPS Next 2Y21.97%
EPS Next 3Y18.41%
EPS Next 5YN/A
Revenue 1Y (TTM)18.29%
Revenue growth 3Y17.15%
Revenue growth 5Y13.7%
Sales Q2Q%5.96%
Revenue Next Year6.88%
Revenue Next 2Y6.91%
Revenue Next 3Y7.39%
Revenue Next 5YN/A
EBIT growth 1Y33.91%
EBIT growth 3Y30.22%
EBIT growth 5Y37.14%
EBIT Next Year57.83%
EBIT Next 3Y24.18%
EBIT Next 5YN/A
FCF growth 1Y266.98%
FCF growth 3Y66.34%
FCF growth 5Y73.56%
OCF growth 1Y191.34%
OCF growth 3Y57.33%
OCF growth 5Y64.69%