STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
326.6 USD
-54.1 (-14.21%)
329.91 USD
+3.31 (+1.01%)
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. These ratings would make STRL suitable for growth and quality investing!
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.32%, STRL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
With an excellent Return On Equity value of 30.04%, STRL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
STRL has a better Return On Invested Capital (16.82%) than 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 16.81%.
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
With an excellent Profit Margin value of 14.14%, STRL belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
STRL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.96%, STRL belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
In the last couple of years the Operating Margin of STRL has grown nicely.
STRL has a Gross Margin of 23.05%. This is in the better half of the industry: STRL outperforms 69.09% of its industry peers.
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
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.
STRL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.40 indicates that STRL is not in any danger for bankruptcy at the moment.
STRL has a Altman-Z score of 6.40. This is amongst the best in the industry. STRL outperforms 83.64% 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 Debt to FCF ratio of 0.81. This is amongst the best in the industry. STRL outperforms 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 better Debt to Equity ratio (0.27) than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.4 |
ROIC/WACC1.67
WACC10.08%
2.3 Liquidity
A Current Ratio of 1.00 indicates that STRL may have some problems paying its short term obligations.
With a Current ratio value of 1.00, STRL is not doing good in the industry: 67.27% of the companies in the same industry are doing better.
A Quick Ratio of 1.00 indicates that STRL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, STRL is doing worse than 65.45% of the companies in the same 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 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 72.30% over the past year.
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
The Earnings Per Share is expected to grow by 13.38% on average over the next years. This is quite good.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.02, STRL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STRL is on the same level as its industry peers.
STRL is valuated rather expensively when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 33.05, which means the current valuation is very expensive for STRL.
STRL's Price/Forward Earnings ratio is in line with the industry average.
STRL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 33.05 |
4.2 Price Multiples
STRL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STRL indicates a somewhat cheap valuation: STRL is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.73 | ||
| EV/EBITDA | 27.23 |
4.3 Compensation for Growth
The excellent profitability rating of STRL may justify a higher PE ratio.
A more expensive valuation may be justified as STRL's earnings are expected to grow with 13.38% in the coming years.
PEG (NY)N/A
PEG (5Y)0.59
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 |
326.6
-54.1 (-14.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners103.01%
Inst Owner Change-4.06%
Ins Owners2.12%
Ins Owner Change-0.18%
Market Cap10.03B
Revenue(TTM)2.23B
Net Income(TTM)315.77M
Analysts84
Price Target360.32 (10.32%)
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)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)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 | 32.02 | ||
| Fwd PE | 33.05 | ||
| P/S | 4.49 | ||
| P/FCF | 27.73 | ||
| P/OCF | 23.42 | ||
| P/B | 9.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.23 |
EPS(TTM)10.2
EY3.12%
EPS(NY)9.88
Fwd EY3.03%
FCF(TTM)11.78
FCFY3.61%
OCF(TTM)13.94
OCFY4.27%
SpS72.72
BVpS34.23
TBVpS-2.97
PEG (NY)N/A
PEG (5Y)0.59
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 | 6.4 |
F-Score7
WACC10.08%
ROIC/WACC1.67
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 32.02 and the Price/Book (PB) ratio is 9.54.
How financially healthy is STERLING INFRASTRUCTURE INC?
The financial health rating of STERLING INFRASTRUCTURE INC (STRL) is 7 / 10.