(STRL) Sterling Construction - Overview
Sector: Industrials | Industry: Engineering & Construction | Exchange: NASDAQ (USA) | Market Cap: 26.047m USD | Total Return: 291.6% in 12m
Industry Rotation: -9.0
Avg Turnover: 445M
EPS Trend: 90.6%
Qual. Beats: 10
Rev. Trend: 71.7%
Qual. Beats: 4
Warnings
P/E ratio 75.8
Below Avwap Earnings
Tailwinds
Leader, Pead, Confidence
Sterling Infrastructure, Inc. (STRL) is a diversified construction and engineering firm providing specialized site development and infrastructure services across the United States. The company operates through three core segments: E-Infrastructure, which focuses on large-scale data centers and distribution hubs; Transportation, which manages public works projects like highways and rail systems; and Building Solutions, which provides concrete and plumbing services for residential and commercial developments.
The E-Infrastructure segment benefits from the high barriers to entry inherent in large-scale earthwork and the technical requirements of high-density power sectors. Sterling often operates under a fixed-price or unit-price contract model, which places the responsibility for cost management and operational efficiency on the contractor to ensure profitability.
For a detailed analysis of the companys fundamentals and valuation metrics, consider reviewing the latest data on ValueRay. Sterling maintains a strategic geographic presence in high-growth regions, including the Southern and Rocky Mountain states, positioning it to capture demand from both private industrial expansion and public infrastructure spending.
- Data center and manufacturing demand fuels high-margin E-Infrastructure segment growth
- Federal infrastructure spending levels dictate Transportation Solutions project backlog and revenue
- Residential housing starts in Southern markets drive Building Solutions concrete volumes
- Raw material price volatility and labor shortages impact project execution margins
- Shift toward specialized infrastructure projects enhances overall corporate EBITDA margin and valuation
| Net Income: 346.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA -6.60 > 1.0 |
| NWC/Revenue: 3.85% < 20% (prev 11.44%; Δ -7.59% < -1%) |
| CFO/TA 0.19 > 3% & CFO 519.3m > Net Income 346.6m |
| Net Debt (-169.7m) to EBITDA (589.9m): -0.29 < 3 |
| Current Ratio: 1.10 > 1.5 & < 3 |
| Outstanding Shares: last quarter (31.0m) vs 12m ago 0.51% < -2% |
| Gross Margin: 22.79% > 18% (prev 0.21%; Δ 2.26k% > 0.5%) |
| Asset Turnover: 119.7% > 50% (prev 103.5%; Δ 16.22% > 0%) |
| Interest Coverage Ratio: 27.17 > 6 (EBITDA TTM 589.9m / Interest Expense TTM 18.6m) |
| A: 0.04 (Total Current Assets 1.19b - Total Current Liabilities 1.08b) / Total Assets 2.78b |
| B: 0.35 (Retained Earnings 968.6m / Total Assets 2.78b) |
| C: 0.21 (EBIT TTM 504.6m / Avg Total Assets 2.41b) |
| D: 0.61 (Book Value of Equity 968.9m / Total Liabilities 1.59b) |
| Altman-Z'' Score: 3.44 = A |
| DSRI: 1.40 (Receivables 652.9m/341.4m, Revenue 2.88b/2.11b) |
| GMI: 0.92 (GM 22.79% / 21.08%) |
| AQI: 1.23 (AQ_t 0.45 / AQ_t-1 0.37) |
| SGI: 1.37 (Revenue 2.88b / 2.11b) |
| TATA: -0.06 (NI 346.6m - CFO 519.3m) / TA 2.78b) |
| Beneish M-Score: -2.43 (Cap -4..+1) = BBB |
Over the past week, the price has changed by -14.45%, over one month by +54.01%, over three months by +75.44% and over the past year by +291.60%.
- StrongBuy: 3
- Buy: 0
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 841 | 15.5% |
P/E Forward = 53.1915
P/S = 9.4568
P/B = 21.7926
P/EG = 3.5544
Revenue TTM = 2.88b USD
EBIT TTM = 504.6m USD
EBITDA TTM = 589.9m USD
Long Term Debt = 272.3m USD (from longTermDebt, last quarter)
Short Term Debt = 31.3m USD (from shortTermDebt, last quarter)
Debt = 342.2m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -169.7m USD (from netDebt column, last quarter)
Enterprise Value = 25.88b USD (26.05b + Debt 342.2m - CCE 511.9m)
Interest Coverage Ratio = 27.17 (Ebit TTM 504.6m / Interest Expense TTM 18.6m)
EV/FCF = 58.78x (Enterprise Value 25.88b / FCF TTM 440.2m)
FCF Yield = 1.70% (FCF TTM 440.2m / Enterprise Value 25.88b)
FCF Margin = 15.26% (FCF TTM 440.2m / Revenue TTM 2.88b)
Net Margin = 12.02% (Net Income TTM 346.6m / Revenue TTM 2.88b)
Gross Margin = 22.79% ((Revenue TTM 2.88b - Cost of Revenue TTM 2.23b) / Revenue TTM)
Gross Margin QoQ = 22.67% (prev 20.78%)
Tobins Q-Ratio = 9.30 (Enterprise Value 25.88b / Total Assets 2.78b)
Interest Expense / Debt = 1.17% (Interest Expense 4.01m / Debt 342.2m)
Taxrate = 24.50% (33.7m / 137.4m)
NOPAT = 381.0m (EBIT 504.6m * (1 - 24.50%))
Current Ratio = 1.10 (Total Current Assets 1.19b / Total Current Liabilities 1.08b)
Debt / Equity = 0.29 (Debt 342.2m / totalStockholderEquity, last quarter 1.19b)
Debt / EBITDA = -0.29 (Net Debt -169.7m / EBITDA 589.9m)
Debt / FCF = -0.39 (Net Debt -169.7m / FCF TTM 440.2m)
Total Stockholder Equity = 1.06b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.39% (Net Income 346.6m / Total Assets 2.78b)
RoE = 32.77% (Net Income TTM 346.6m / Total Stockholder Equity 1.06b)
RoCE = 37.94% (EBIT 504.6m / Capital Employed (Equity 1.06b + L.T.Debt 272.3m))
RoIC = 28.21% (NOPAT 381.0m / Invested Capital 1.35b)
WACC = 14.46% (E(26.05b)/V(26.39b) * Re(14.64%) + D(342.2m)/V(26.39b) * Rd(1.17%) * (1-Tc(0.25)))
Discount Rate = 14.64% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -46.67 | Cagr: -0.42%
[DCF] Terminal Value 60.46% ; FCFF base≈446.5m ; Y1≈492.4m ; Y5≈635.4m
[DCF] Fair Price = 162.2 (EV 4.81b - Net Debt -169.7m = Equity 4.98b / Shares 30.7m; r=14.46% [WACC]; 5y FCF grow 11.80% → 3.0% )
EPS Correlation: 90.59 | EPS CAGR: 46.38% | SUE: 4.0 | # QB: 10
Revenue Correlation: 71.72 | Revenue CAGR: 16.76% | SUE: 4.0 | # QB: 4
EPS current Quarter (2026-06-30): EPS=4.99 | Chg30d=+34.14% | Revisions=+43% | Analysts=5
EPS next Quarter (2026-09-30): EPS=5.65 | Chg30d=+44.08% | Revisions=+43% | Analysts=5
EPS current Year (2026-12-31): EPS=18.72 | Chg30d=+39.38% | Revisions=+43% | GrowthEPS=+72.1% | GrowthRev=+51.6%
EPS next Year (2027-12-31): EPS=22.41 | Chg30d=+45.64% | Revisions=+50% | GrowthEPS=+19.7% | GrowthRev=+11.6%
[Analyst] Revisions Ratio: +50%