(STRL) Sterling Construction - NASDAQ
Sector: Industrials | Industry: Engineering & Construction | Exchange: NASDAQ (USA) | Market Cap: 26.448m USD | Total Return: 252% in 12m
Avg Turnover: 612M
EPS Trend: 98.3%
Qual. Beats: 10
Rev. Trend: 91.6%
Qual. Beats: 4
Warnings
P/E ratio 77.3
Below Avwap Earnings
Tailwinds
Rs Leader, Confidence
Sterling Infrastructure, Inc. (NASDAQ: STRL) is a U.S.-based construction services provider operating through three segments: E-Infrastructure Solutions (site development for data centers, e-commerce distribution centers, manufacturing, warehousing, and power generation), Transportation Solutions (highways, roads, bridges, airports, ports, rail, and storm drainage for public-sector clients), and Building Solutions (residential and commercial concrete foundations, plus plumbing and survey services). Founded in 1955 and headquartered in The Woodlands, Texas, the company was renamed from Sterling Construction Company, Inc. to Sterling Infrastructure, Inc. in June 2022, and operates primarily across the Southern, Northeastern, Mid-Atlantic, and Rocky Mountain regions of the United States, as well as the Pacific Islands.
STRL is classified within the GICS Construction & Engineering sub-industry under the broader Industrials sector, a grouping that typically includes companies engaged in heavy civil infrastructure, commercial building, and specialty contracting. The companys diversified segment structure reflects a business model that blends public infrastructure project work (driven by state and federal transportation spending) with private-sector commercial and residential demand, including exposure to fast-growing areas like data center site development and large-scale logistics facilities.
- Data center site work surges on AI infrastructure capex
- Federal highway funding lifts transportation segment backlog
- Residential foundation demand softens amid housing market slowdown
| 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 (-114.9m) to EBITDA (590.0m): -0.19 < 3 |
| Current Ratio: 1.10 > 1.5 & < 3 |
| Outstanding Shares: last quarter (31.0m) vs 12m ago 0.51% < -2% |
| Gross Margin: 23.29% > 18% (prev 21.08%; Δ 2.20% > 0.5%) |
| Asset Turnover: 119.7% > 50% (prev 103.5%; Δ 16.22% > 0%) |
| Interest Coverage Ratio: 27.29 > 6 (EBIT TTM 506.8m / 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 506.8m / Avg Total Assets 2.41b) |
| D: 0.75 (Book Value of Equity 1.19b / Total Liabilities 1.59b) |
| Altman-Z'' = 3.60 = A |
| DSRI: 1.40 (Receivables 652.9m/341.4m, Revenue 2.88b/2.11b) |
| GMI: 0.91 (GM 21.08% / 23.29%) |
| 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 = -2.39 (Cap -4..+1) = BBB |
As of June 28, 2026, the stock is trading at USD 804.76 with a total of 3,401,910 shares traded. Over the past week, the price has changed by -6.63%, over one month by +2.71%, over three months by +93.48% and over the past year by +251.96%.
Current recommended Stop Loss: 726.90 (which is 9.7% or 1.2 ATR below the current price).
Sterling Construction has received a consensus analysts rating of 5.00. Therefore, it is recommended to buy STRL.
- StrongBuy: 3
- Buy: 0
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 941.2 | 17% |
P/E Trailing = 77.2987
P/E Forward = 45.6621
P/S = 9.168
P/B = 22.2332
P/EG = 1.4742
Revenue TTM = 2.88b USD
EBIT TTM = 506.8m USD
EBITDA TTM = 590.0m USD
Long Term Debt = 272.3m USD (from longTermDebt, last quarter)
Short Term Debt = 31.3m USD (from shortTermDebt, last quarter)
Debt = 396.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 54.7m
Net Debt = -114.9m USD (calculated: Debt 396.9m - CCE 511.9m)
Enterprise Value = 26.3b USD (26.4b + Debt 396.9m - CCE 511.9m)
Interest Coverage Ratio = 27.29 (Ebit TTM 506.8m / Interest Expense TTM 18.6m)
EV/FCF = 59.81x (Enterprise Value 26.3b / FCF TTM 440.2m)
FCF Yield = 1.67% (FCF TTM 440.2m / Enterprise Value 26.3b)
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 = 23.29% ((Revenue TTM 2.88b - Cost of Revenue TTM 2.21b) / Revenue TTM)
Gross Margin QoQ = 23.53% (prev 21.72%)
Tobins Q-Ratio = 9.46 (Enterprise Value 26.3b / Total Assets 2.78b)
Interest Expense / Debt = 4.68% (Interest Expense 18.6m / Debt 396.9m)
Taxrate = 24.03% (117.3m / 488.2m)
NOPAT = 385.0m (EBIT 506.8m * (1 - 24.03%))
Current Ratio = 1.10 (Total Current Assets 1.19b / Total Current Liabilities 1.08b)
Debt / Equity = 0.33 (Debt 396.9m / totalStockholderEquity, last quarter 1.19b)
Debt / EBITDA = -0.19 (Net Debt -114.9m / EBITDA 590.0m)
Debt / FCF = -0.26 (Net Debt -114.9m / 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 = 38.10% (EBIT 506.8m / Capital Employed (Equity 1.06b + L.T.Debt 272.3m))
RoIC = 24.26% (NOPAT 385.0m / Invested Capital 1.59b)
WACC = 15.01% (E(26.4b)/V(26.8b) * Re(15.18%) + D(396.9m)/V(26.8b) * Rd(4.68%) * (1-Tc(0.24)))
Discount Rate = 15.18% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -46.67 | Cagr: -0.42%
[DCF] Terminal Value 55.09% ; FCFF base≈446.5m ; Y1≈435.5m ; Y5≈435.1m
[DCF] Fair Price = 108.6 (EV 3.22b - Net Debt -114.9m = Equity 3.33b / Shares 30.7m; r=15.01% [WACC]; 5y FCF grow -3.44% → 2.50% )
EPS Correlation: 98.26 | EPS CAGR: 50.88% | SUE: 4.0 | # QB: 10
Revenue Correlation: 91.58 | Revenue CAGR: 15.05% | SUE: 4.0 | # QB: 4
EPS current Quarter (2026-06-30): EPS=5.29 | Chg30d=+5.91% | Revisions=+43% | Analysts=2
EPS next Quarter (2026-09-30): EPS=5.84 | Chg30d=+3.49% | Revisions=+43% | Analysts=2
EPS current Year (2026-12-31): EPS=18.92 | Chg30d=+5.09% | Revisions=+43% | GrowthEPS=+73.9% | GrowthRev=+59.2%
EPS next Year (2027-12-31): EPS=27.04 | Chg30d=+20.68% | Revisions=+50% | GrowthEPS=+42.9% | GrowthRev=+29.1%
[Analyst] Revisions Ratio: +50%