STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
NASDAQ:STRL - US8592411016 - Common Stock
278.53 USD
-12.42 (-4.27%)
278.53 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to STRL. STRL was compared to 53 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 shows excellent growth, but is valued quite expensive already. 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.
STRL had a positive operating cash flow in the past year.
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
The Return On Assets of STRL (13.19%) is better than 88.68% of its industry peers.
STRL has a Return On Equity of 32.32%. This is amongst the best in the industry. STRL outperforms 83.02% of its industry peers.
The Return On Invested Capital of STRL (17.29%) is better than 81.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STRL is in line with the industry average of 15.23%.
The 3 year average ROIC (13.99%) for STRL is below the current ROIC(17.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.19% | ||
| ROE | 32.32% | ||
| ROIC | 17.29% |
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
STRL has a Profit Margin of 13.33%. This is amongst the best in the industry. STRL outperforms 90.57% of its industry peers.
In the last couple of years the Profit Margin of STRL has grown nicely.
STRL has a Operating Margin of 14.66%. This is amongst the best in the industry. STRL outperforms 94.34% of its industry peers.
In the last couple of years the Operating Margin of STRL has grown nicely.
The Gross Margin of STRL (22.19%) is better than 67.92% of its industry peers.
STRL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.66% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.19% |
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
STRL has more shares outstanding than it did 5 years ago.
STRL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.08 indicates that STRL is not in any danger for bankruptcy at the moment.
The Altman-Z score of STRL (6.08) is better than 84.91% of its industry peers.
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.
STRL has a Debt to FCF ratio of 0.68. This is amongst the best in the industry. STRL outperforms 86.79% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that STRL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, STRL is doing good in the industry, outperforming 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 6.08 |
ROIC/WACC1.56
WACC11.06%
2.3 Liquidity
A Current Ratio of 1.42 indicates that STRL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, STRL is in the better half of the industry, outperforming 64.15% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that STRL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.42, STRL is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
STRL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.55%, which is quite impressive.
Measured over the past years, STRL shows a very strong growth in Earnings Per Share. The EPS has been growing by 54.19% on average per year.
STRL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.31%.
The Revenue has been growing by 13.44% on average over the past years. This is quite good.
EPS 1Y (TTM)76.55%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%38.32%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%5.43%
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 16.03% on average per year.
The Revenue is expected to grow by 11.23% on average over the next years. This is quite good.
EPS Next Y-4.09%
EPS Next 2Y5.55%
EPS Next 3Y16.03%
EPS Next 5YN/A
Revenue Next Year-0.23%
Revenue Next 2Y5.27%
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 30.27, which means the current valuation is very expensive for STRL.
STRL's Price/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/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.19, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, STRL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.28 | ||
| Fwd PE | 30.19 |
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 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.44 | ||
| EV/EBITDA | 21.06 |
4.3 Compensation for Growth
The excellent profitability rating of STRL may justify a higher PE ratio.
STRL's earnings are expected to grow with 16.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y5.55%
EPS Next 3Y16.03%
5. Dividend
5.1 Amount
STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
278.53
-12.42 (-4.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.08%
Inst Owner Change13.83%
Ins Owners2.14%
Ins Owner Change1.97%
Market Cap8.47B
Analysts86.67
Price Target362.1 (30%)
Short Float %7.34%
Short Ratio3.92
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)4%
Min EPS beat(2)-6.96%
Max EPS beat(2)14.96%
EPS beat(4)3
Avg EPS beat(4)47.38%
Min EPS beat(4)-6.96%
Max EPS beat(4)168.82%
EPS beat(8)6
Avg EPS beat(8)32.08%
EPS beat(12)10
Avg EPS beat(12)30.04%
EPS beat(16)14
Avg EPS beat(16)29.75%
Revenue beat(2)2
Avg Revenue beat(2)5.98%
Min Revenue beat(2)3.29%
Max Revenue beat(2)8.67%
Revenue beat(4)2
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)8.67%
Revenue beat(8)4
Avg Revenue beat(8)-0.85%
Revenue beat(12)6
Avg Revenue beat(12)-3.15%
Revenue beat(16)7
Avg Revenue beat(16)-4.18%
PT rev (1m)38.49%
PT rev (3m)78.99%
EPS NQ rev (1m)4.49%
EPS NQ rev (3m)19.09%
EPS NY rev (1m)6.1%
EPS NY rev (3m)10.19%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)4.23%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.28 | ||
| Fwd PE | 30.19 | ||
| P/S | 3.96 | ||
| P/FCF | 19.44 | ||
| P/OCF | 17.05 | ||
| P/B | 9.61 | ||
| P/tB | 31.51 | ||
| EV/EBITDA | 21.06 |
EPS(TTM)9.2
EY3.3%
EPS(NY)9.23
Fwd EY3.31%
FCF(TTM)14.33
FCFY5.15%
OCF(TTM)16.33
OCFY5.86%
SpS70.28
BVpS28.99
TBVpS8.84
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.19% | ||
| ROE | 32.32% | ||
| ROCE | 22.96% | ||
| ROIC | 17.29% | ||
| ROICexc | 35.46% | ||
| ROICexgc | 449.63% | ||
| OM | 14.66% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.19% | ||
| FCFM | 20.39% |
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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 87.21% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.66% | ||
| Profit Quality | 152.96% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 6.08 |
F-Score8
WACC11.06%
ROIC/WACC1.56
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)76.55%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%38.32%
EPS Next Y-4.09%
EPS Next 2Y5.55%
EPS Next 3Y16.03%
EPS Next 5YN/A
Revenue 1Y (TTM)3.31%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%5.43%
Revenue Next Year-0.23%
Revenue Next 2Y5.27%
Revenue Next 3Y11.23%
Revenue Next 5YN/A
EBIT growth 1Y37.15%
EBIT growth 3Y33.7%
EBIT growth 5Y44.55%
EBIT Next Year61.97%
EBIT Next 3Y35.32%
EBIT Next 5YN/A
FCF growth 1Y51.74%
FCF growth 3Y54.79%
FCF growth 5Y73.2%
OCF growth 1Y38.71%
OCF growth 3Y46.25%
OCF growth 5Y63.84%