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 49 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. While showing a medium growth rate, STRL is valued expensive at the moment. These ratings could make STRL a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year STRL was profitable.
In the past year STRL had a positive cash flow from operations.
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
With an excellent Return On Assets value of 13.07%, STRL belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
STRL has a better Return On Equity (33.01%) than 85.71% of its industry peers.
The Return On Invested Capital of STRL (16.44%) is better than 83.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STRL is below the industry average of 16.83%.
The 3 year average ROIC (13.99%) for STRL is below the current ROIC(16.44%), indicating increased profibility in the last year.
| 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
STRL has a better Profit Margin (12.62%) than 91.84% of its industry peers.
In the last couple of years the Profit Margin of STRL has grown nicely.
STRL's Operating Margin of 13.25% is amongst the best of the industry. STRL outperforms 91.84% of its industry peers.
STRL's Operating Margin has improved in the last couple of years.
The Gross Margin of STRL (21.08%) is better than 65.31% 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.
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 6.51. This indicates that STRL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.51, STRL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
STRL has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
STRL has a Debt to FCF ratio of 0.68. This is amongst the best in the industry. STRL outperforms 87.76% of its industry peers.
STRL has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
STRL has a Debt to Equity ratio of 0.35. This is in the better half of the industry: STRL outperforms 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 6.51 |
ROIC/WACC1.52
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.32 indicates that STRL should not have too much problems paying its short term obligations.
STRL's Current ratio of 1.32 is in line compared to the rest of the industry. STRL outperforms 53.06% of 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 Quick ratio (1.32) which is comparable to the rest of the industry.
The current and quick ratio evaluation for STRL is rather negative, while it does have 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 | 1.32 | ||
| 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 83.84%, 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 7.28% in the past year.
The Revenue has been growing by 13.44% on average over the past years. This is quite good.
EPS 1Y (TTM)83.84%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%61.08%
Revenue 1Y (TTM)7.28%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%5.43%
3.2 Future
STRL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.59% yearly.
Based on estimates for the next years, STRL will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y-9.61%
EPS Next 2Y1.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y4.55%
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
STRL is valuated quite expensively with a Price/Earnings ratio of 31.60.
Based on the Price/Earnings ratio, STRL is valued a bit cheaper than 61.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, STRL is valued at the same level.
STRL is valuated quite expensively with a Price/Forward Earnings ratio of 35.42.
Based on the Price/Forward Earnings ratio, STRL is valued a bit more expensive than 63.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, STRL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.6 | ||
| Fwd PE | 35.42 |
4.2 Price Multiples
61.22% of the companies in the same industry are cheaper than STRL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, STRL is valued a bit cheaper than the industry average as 67.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.19 | ||
| EV/EBITDA | 25.22 |
4.3 Compensation for Growth
The excellent profitability rating of STRL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y1.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for STRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
302.69
+3.05 (+1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners91.46%
Inst Owner Change0.87%
Ins Owners2.98%
Ins Owner Change1.97%
Market Cap9.20B
Analysts86.67
Price Target261.46 (-13.62%)
Short Float %8.19%
Short Ratio4.91
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)80.93%
Min EPS beat(2)-6.96%
Max EPS beat(2)168.82%
EPS beat(4)3
Avg EPS beat(4)47.41%
Min EPS beat(4)-6.96%
Max EPS beat(4)168.82%
EPS beat(8)6
Avg EPS beat(8)34.51%
EPS beat(12)10
Avg EPS beat(12)30.17%
EPS beat(16)14
Avg EPS beat(16)30.7%
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)29.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)5.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.6 | ||
| Fwd PE | 35.42 | ||
| P/S | 4.37 | ||
| P/FCF | 20.19 | ||
| P/OCF | 17.29 | ||
| P/B | 11.43 | ||
| P/tB | 48.95 | ||
| EV/EBITDA | 25.22 |
EPS(TTM)9.58
EY3.16%
EPS(NY)8.55
Fwd EY2.82%
FCF(TTM)14.99
FCFY4.95%
OCF(TTM)17.51
OCFY5.78%
SpS69.26
BVpS26.49
TBVpS6.18
PEG (NY)N/A
PEG (5Y)0.58
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 | 6.51 |
F-Score7
WACC10.83%
ROIC/WACC1.52
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)83.84%
EPS 3Y54.39%
EPS 5Y54.19%
EPS Q2Q%61.08%
EPS Next Y-9.61%
EPS Next 2Y1.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.28%
Revenue growth 3Y14.37%
Revenue growth 5Y13.44%
Sales Q2Q%5.43%
Revenue Next Year-1.14%
Revenue Next 2Y4.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y29.2%
EBIT growth 3Y33.7%
EBIT growth 5Y44.55%
EBIT Next Year61.97%
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%