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 41 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 is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
STRL had positive earnings in each of the past 5 years.
STRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STRL's Return On Assets of 7.80% is amongst the best of the industry. STRL outperforms 90.00% of its industry peers.
STRL has a Return On Equity of 22.41%. This is amongst the best in the industry. STRL outperforms 90.00% of its industry peers.
STRL's Return On Invested Capital of 13.65% is amongst the best of the industry. STRL outperforms 92.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STRL is above the industry average of 8.37%.
The last Return On Invested Capital (13.65%) for STRL is above the 3 year average (11.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 22.41% | ||
| ROIC | 13.65% |
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's Profit Margin of 7.03% is amongst the best of the industry. STRL outperforms 92.50% of its industry peers.
In the last couple of years the Profit Margin of STRL has grown nicely.
Looking at the Operating Margin, with a value of 10.48%, STRL belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of STRL has grown nicely.
Looking at the Gross Margin, with a value of 17.12%, STRL is in line with its industry, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Gross Margin of STRL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.48% | ||
| PM (TTM) | 7.03% | ||
| GM | 17.12% |
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.
The number of shares outstanding for STRL has been increased compared to 1 year ago.
Compared to 5 years ago, STRL has more shares outstanding
The debt/assets ratio for STRL has been reduced compared to a year ago.
2.2 Solvency
STRL has an Altman-Z score of 3.89. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.89, STRL is doing good in the industry, outperforming 72.50% of the companies in the same industry.
STRL has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
STRL's Debt to FCF ratio of 0.82 is amongst the best of the industry. STRL outperforms 85.00% of its industry peers.
STRL has a Debt/Equity ratio of 0.51. This is a neutral value indicating STRL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, STRL is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 3.89 |
ROIC/WACC1.41
WACC9.69%
2.3 Liquidity
STRL has a Current Ratio of 1.25. This is a normal value and indicates that STRL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of STRL (1.25) is worse than 70.00% of its industry peers.
STRL has a Quick Ratio of 1.25. This is a normal value and indicates that STRL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.25, STRL perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
STRL does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.81% over the past year.
The Earnings Per Share has been growing by 36.77% on average over the past years. This is a very strong growth
STRL shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.31%.
STRL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.70% yearly.
EPS 1Y (TTM)26.81%
EPS 3Y43.07%
EPS 5Y36.77%
EPS growth Q2Q24.27%
Revenue 1Y (TTM)22.31%
Revenue growth 3Y17.15%
Revenue growth 5Y13.7%
Revenue growth Q2Q66.66%
3.2 Future
The Earnings Per Share is expected to grow by 14.01% on average over the next years. This is quite good.
Based on estimates for the next years, STRL will show a quite strong growth in Revenue. The Revenue will grow by 8.79% on average per year.
EPS Next Y14.28%
EPS Next 2Y14.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.91%
Revenue Next 2Y8.79%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.24, 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 28.05, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.71, which indicates a rather expensive current valuation of STRL.
STRL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of STRL to the average of the S&P500 Index (20.30), we can say STRL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.24 | ||
| Fwd PE | 24.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STRL indicates a somewhat cheap valuation: STRL is cheaper than 62.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STRL is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.45 | ||
| EV/EBITDA | 14.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 14.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.98
PEG (5Y)0.77
EPS Next 2Y14.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for STRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STERLING INFRASTRUCTURE INC
NASDAQ:STRL (5/8/2024, 7:20:35 PM)
Premarket: 125.46 -0.22 (-0.18%)125.68
+3.68 (+3.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.24 | ||
| Fwd PE | 24.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
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PEG (NY)1.98
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 22.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.48% | ||
| PM (TTM) | 7.03% | ||
| GM | 17.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.81%
EPS 3Y43.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.31%
Revenue growth 3Y17.15%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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