STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis
USA - NASDAQ:STRL - US8592411016 - Common Stock
326.6 USD
-54.1 (-14.21%)
330.17 USD
+3.57 (+1.09%)
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. Both the health and profitability get an excellent rating, making STRL a very profitable company, without any liquidiy or solvency issues. STRL shows excellent growth, but is valued quite expensive already. With these ratings, STRL could be worth investigating further for growth and 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.
Each year in the past 5 years STRL has 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 12.32%. This is amongst the best in the industry. STRL outperforms 81.82% of its industry peers.
STRL's Return On Equity of 30.04% is amongst the best of the industry. STRL outperforms 81.82% of its industry peers.
With an excellent Return On Invested Capital value of 16.82%, STRL belongs to the best of the industry, outperforming 81.82% 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 16.81%.
The 3 year average ROIC (13.99%) for STRL is below the current ROIC(16.82%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of STRL has grown nicely.
STRL's Operating Margin of 15.96% is amongst the best of the industry. STRL outperforms 94.55% of its industry peers.
In the last couple of years the Operating Margin of STRL has grown nicely.
Looking at the Gross Margin, with a value of 23.05%, STRL is in the better half of the industry, outperforming 69.09% 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 | 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
STRL has an Altman-Z score of 6.40. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.40, STRL belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.81, STRL belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that STRL is not too dependend on debt financing.
STRL has a Debt to Equity ratio of 0.27. This is in the better half of the industry: STRL outperforms 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 6.4 |
ROIC/WACC1.66
WACC10.11%
2.3 Liquidity
STRL has a Current Ratio of 1.00. This is a bad value and indicates that STRL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of STRL (1.00) is worse than 67.27% of its industry peers.
STRL has a Quick Ratio of 1.00. This is a bad value and indicates that STRL is not financially healthy enough and could expect problems in meeting 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.
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 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 72.30% over the past year.
STRL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.19% yearly.
Looking at the last year, STRL shows a small growth in Revenue. The Revenue has grown by 6.20% in the last 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)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
Based on estimates for the next years, STRL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.38% 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-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.
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
Based on the Price/Earnings ratio of 32.02, the valuation of STRL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as STRL.
When comparing the Price/Earnings ratio of STRL to the average of the S&P500 Index (25.91), we can say STRL is valued slightly more expensively.
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.
When comparing the Price/Forward Earnings ratio of STRL to the average of the S&P500 Index (34.57), we can say STRL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 33.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STRL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, STRL is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.73 | ||
| EV/EBITDA | 27.23 |
4.3 Compensation for Growth
STRL has an outstanding profitability rating, which 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
No dividends for STRL!.
| 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
WACC10.11%
ROIC/WACC1.66
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.