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STERLING INFRASTRUCTURE INC (STRL) Stock Fundamental Analysis

NASDAQ:STRL - Nasdaq - US8592411016 - Common Stock - Currency: USD

187.19  +1.21 (+0.65%)

Premarket: 185 -2.19 (-1.17%)

Fundamental Rating

6

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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. STRL is not valued too expensively and it also shows a decent growth rate. These ratings would make STRL suitable for quality investing!


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year STRL was profitable.
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.
STRL Yearly Net Income VS EBIT VS OCF VS FCFSTRL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

1.2 Ratios

Looking at the Return On Assets, with a value of 13.07%, STRL belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
STRL has a Return On Equity of 33.01%. This is amongst the best in the industry. STRL outperforms 84.31% of its industry peers.
STRL has a Return On Invested Capital of 16.44%. This is amongst the best in the industry. STRL outperforms 84.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STRL is below the industry average of 16.96%.
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 RankSector 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%
STRL Yearly ROA, ROE, ROICSTRL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

With an excellent Profit Margin value of 12.62%, STRL belongs to the best of the industry, outperforming 94.12% 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 13.25%, STRL belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
STRL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.08%, STRL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
STRL's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
STRL Yearly Profit, Operating, Gross MarginsSTRL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15 20

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7

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.
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.
STRL Yearly Shares OutstandingSTRL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
STRL Yearly Total Debt VS Total AssetsSTRL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

STRL has an Altman-Z score of 4.84. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.84, STRL is doing good in the industry, outperforming 76.47% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.68, STRL belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that STRL is not too dependend on debt financing.
STRL has a Debt to Equity ratio of 0.35. This is in the better half of the industry: STRL outperforms 64.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 0.68
Altman-Z 4.84
ROIC/WACC1.58
WACC10.44%
STRL Yearly LT Debt VS Equity VS FCFSTRL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.32 indicates that STRL should not have too much problems paying its short term obligations.
STRL has a Current ratio of 1.32. This is comparable to the rest of the industry: STRL outperforms 54.90% of its industry peers.
A Quick Ratio of 1.32 indicates that STRL should not have too much problems paying its short term obligations.
STRL's Quick ratio of 1.32 is fine compared to the rest of the industry. STRL outperforms 60.78% of its industry peers.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.32
STRL Yearly Current Assets VS Current LiabilitesSTRL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 77.93% 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
STRL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.85%.
The Revenue has been growing by 13.44% on average over the past years. This is quite good.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
STRL Yearly Revenue VS EstimatesSTRL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
STRL Yearly EPS VS EstimatesSTRL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

STRL is valuated rather expensively with a Price/Earnings ratio of 21.87.
Compared to the rest of the industry, the Price/Earnings ratio of STRL indicates a somewhat cheap valuation: STRL is cheaper than 74.51% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STRL to the average of the S&P500 Index (26.60), we can say STRL is valued inline with the index average.
The Price/Forward Earnings ratio is 21.03, which indicates a rather expensive current valuation of STRL.
STRL's Price/Forward Earnings ratio is in line with the industry average.
STRL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.43.
Industry RankSector Rank
PE 21.87
Fwd PE 21.03
STRL Price Earnings VS Forward Price EarningsSTRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

STRL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, STRL is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.49
EV/EBITDA 15.41
STRL Per share dataSTRL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

STRL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y3.69%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

STRL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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STERLING INFRASTRUCTURE INC

NASDAQ:STRL (5/20/2025, 8:00:00 PM)

Premarket: 185 -2.19 (-1.17%)

187.19

+1.21 (+0.65%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)05-05 2025-05-05/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners89.24%
Inst Owner Change0.02%
Ins Owners2.83%
Ins Owner Change2.02%
Market Cap5.69B
Analysts86.67
Price Target202.3 (8.07%)
Short Float %10.56%
Short Ratio3.48
Dividend
Industry RankSector 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)0%
PT rev (3m)13.77%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)4.56%
EPS NY rev (1m)-2.85%
EPS NY rev (3m)8.83%
Revenue NQ rev (1m)3.3%
Revenue NQ rev (3m)-3.28%
Revenue NY rev (1m)3.06%
Revenue NY rev (3m)-4.67%
Valuation
Industry RankSector Rank
PE 21.87
Fwd PE 21.03
P/S 2.7
P/FCF 12.49
P/OCF 10.7
P/B 7.07
P/tB 30.28
EV/EBITDA 15.41
EPS(TTM)8.56
EY4.57%
EPS(NY)8.9
Fwd EY4.76%
FCF(TTM)14.99
FCFY8.01%
OCF(TTM)17.5
OCFY9.35%
SpS69.24
BVpS26.48
TBVpS6.18
PEG (NY)N/A
PEG (5Y)0.4
Profitability
Industry RankSector 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 RankSector 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 4.84
F-Score7
WACC10.44%
ROIC/WACC1.58
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 Year55.7%
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%