STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
NASDAQ:STRL - Nasdaq - US8592411016 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to STRL. STRL was compared to 51 industry peers in the Construction & Engineering industry. STRL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STRL has a correct valuation and a medium 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.
In the past 5 years STRL has always been profitable.
Each year in the past 5 years STRL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.07%, STRL belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
With an excellent Return On Equity value of 33.01%, STRL belongs to the best of the industry, outperforming 86.27% 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 84.31% 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 16.60%.
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 94.12% 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 13.25%, STRL belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
In the last couple of years the Operating Margin of STRL has grown nicely.
STRL has a better Gross Margin (21.08%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of STRL has grown nicely.
| 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
STRL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for STRL has been reduced compared to 1 year ago.
Compared to 5 years ago, STRL has more shares outstanding
STRL has a better debt/assets ratio than last year.
2.2 Solvency
STRL has an Altman-Z score of 5.07. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of STRL (5.07) is better than 74.51% 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 better Debt to FCF ratio (0.68) than 88.24% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that STRL is not too dependend on debt financing.
STRL has a better Debt to Equity ratio (0.35) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 5.07 |
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 has a Current ratio (1.32) which is in line with 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 has a better Quick ratio (1.32) than 64.71% 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.
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.
The Revenue has been growing slightly by 4.85% 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)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
The Earnings Per Share is expected to grow by 3.69% on average over the next years.
STRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.03% yearly.
EPS Next Y-12.97%
EPS Next 2Y3.69%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 23.71 indicates a rather expensive valuation of STRL.
Based on the Price/Earnings ratio, STRL is valued a bit cheaper than 72.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of STRL to the average of the S&P500 Index (26.32), we can say STRL is valued inline with the index average.
A Price/Forward Earnings ratio of 22.80 indicates a rather expensive valuation of STRL.
The rest of the industry has a similar Price/Forward Earnings ratio as STRL.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, STRL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 22.8 |
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 cheaper than 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 16.78 |
4.3 Compensation for Growth
STRL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y3.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
202.99
-1.33 (-0.65%)
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 Change2.02%
Market Cap6.17B
Analysts86.67
Price Target220.32 (8.54%)
Short Float %10.49%
Short Ratio3.68
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)8.91%
PT rev (3m)8.91%
EPS NQ rev (1m)5.44%
EPS NQ rev (3m)10.15%
EPS NY rev (1m)0%
EPS NY rev (3m)8.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 22.8 | ||
| P/S | 2.93 | ||
| P/FCF | 13.54 | ||
| P/OCF | 11.59 | ||
| P/B | 7.66 | ||
| P/tB | 32.82 | ||
| EV/EBITDA | 16.78 |
EPS(TTM)8.56
EY4.22%
EPS(NY)8.9
Fwd EY4.39%
FCF(TTM)14.99
FCFY7.39%
OCF(TTM)17.51
OCFY8.62%
SpS69.26
BVpS26.49
TBVpS6.18
PEG (NY)N/A
PEG (5Y)0.44
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 | 5.07 |
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-12.97%
EPS Next 2Y3.69%
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%