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Sterling Infrastructure, Inc.. (STRL) Stock Fundamental Analysis & AI Rating 2026

STRL Nasdaq Heavy Construction Other Than Bldg Const - Contractors DE CIK: 0000874238
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2025-12-31
BUY
74% Conf
Pending
Analysis scheduled

📊 STRL Key Takeaways

Revenue: $2.5B
Net Margin: 11.7%
Free Cash Flow: $362.7M
Current Ratio: 1.01x
Debt/Equity: 0.25x
EPS: $9.38
AI Rating: BUY with 74% confidence
Sterling Infrastructure, Inc.. (STRL) receives a BUY rating with 74% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $2.5B, net profit margin of 11.7%, and return on equity (ROE) of 26.2%, Sterling Infrastructure, Inc.. demonstrates strong fundamentals in the Industrial sector. Below is our complete STRL stock analysis for 2026.

Is Sterling Infrastructure, Inc.. (STRL) a Good Investment?

Claude

Sterling Infrastructure demonstrates solid fundamentals with 17.7% revenue growth and exceptional cash generation ($362.7M FCF, 14.6% FCF margin), supported by fortress-like balance sheet (0.25x D/E, 130.9x interest coverage). However, net income declined 6.3% despite robust revenue growth, indicating margin compression and operational leverage challenges that must be monitored.

Why Buy Sterling Infrastructure, Inc.. Stock? STRL Key Strengths

Claude
  • + Exceptional cash generation with $362.7M FCF and 14.6% FCF margin demonstrating strong operational efficiency
  • + Fortress balance sheet with 0.25x debt-to-equity ratio and 130.9x interest coverage providing financial flexibility
  • + Strong revenue growth of 17.7% YoY with solid 26.2% ROE indicating effective capital deployment

STRL Stock Risks: Sterling Infrastructure, Inc.. Investment Risks

Claude
  • ! Significant margin compression: net income declined 6.3% while revenue grew 17.7%, suggesting cost pressure or operational inefficiencies at scale
  • ! Tight liquidity position with 1.01x current ratio limiting short-term operational flexibility
  • ! Cyclical construction sector exposure with vulnerability to economic downturns, commodity inflation, and labor cost pressures

Key Metrics to Watch

Claude
  • * Gross margin and operating margin trends to assess cost control and whether compression stabilizes
  • * Operating cash flow to net income conversion ratio to ensure cash generation quality remains strong
  • * Current ratio and working capital management to improve near-term liquidity cushion

Sterling Infrastructure, Inc.. (STRL) Financial Metrics & Key Ratios

Revenue
$2.5B
Net Income
$290.2M
EPS (Diluted)
$9.38
Free Cash Flow
$362.7M
Total Assets
$2.6B
Cash Position
$390.7M

💡 AI Analyst Insight

Sterling Infrastructure, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

STRL Profit Margin, ROE & Profitability Analysis

Gross Margin 23.0%
Operating Margin 16.3%
Net Margin 11.7%
ROE 26.2%
ROA 11.0%
FCF Margin 14.6%

STRL vs Industrial Sector: How Sterling Infrastructure, Inc.. Compares

How Sterling Infrastructure, Inc.. compares to Industrial sector averages

Net Margin
STRL 11.7%
vs
Sector Avg 10.0%
STRL Sector
ROE
STRL 26.2%
vs
Sector Avg 15.0%
STRL Sector
Current Ratio
STRL 1.0x
vs
Sector Avg 1.8x
STRL Sector
Debt/Equity
STRL 0.2x
vs
Sector Avg 0.7x
STRL Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Sterling Infrastructure, Inc.. Stock Overvalued? STRL Valuation Analysis 2026

Based on fundamental analysis, Sterling Infrastructure, Inc.. appears fundamentally strong relative to the Industrial sector in 2026.

Return on Equity
26.2%
Sector avg: 15%
Net Profit Margin
11.7%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.25x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Sterling Infrastructure, Inc.. Balance Sheet: STRL Debt, Cash & Liquidity

Current Ratio
1.01x
Quick Ratio
1.01x
Debt/Equity
0.25x
Debt/Assets
58.0%
Interest Coverage
130.94x
Long-term Debt
$275.9M

STRL Revenue & Earnings Growth: 5-Year Financial Trend

STRL 5-year financial data: Year 2021: Revenue $1.6B, Net Income N/A, EPS $1.47. Year 2022: Revenue $1.8B, Net Income $42.3M, EPS $1.50. Year 2023: Revenue $2.0B, Net Income $62.6M, EPS $2.15. Year 2024: Revenue $2.1B, Net Income $106.5M, EPS $3.48. Year 2025: Revenue $2.5B, Net Income $138.7M, EPS $4.44.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Sterling Infrastructure, Inc..'s revenue has grown significantly by 57% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.44 reflects profitable operations.

STRL Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
14.6%
Free cash flow / Revenue

STRL Quarterly Earnings & Performance

Quarterly financial performance data for Sterling Infrastructure, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $593.7M $61.3M $1.97
Q2 2025 $582.8M $51.9M $1.67
Q1 2025 $430.9M $31.0M $1.00
Q3 2024 $560.3M $39.4M $1.26
Q2 2024 $522.3M $39.5M $1.27
Q1 2024 $403.6M $19.6M $0.64
Q3 2023 $493.0M $29.5M $0.97
Q2 2023 $461.8M $26.0M $0.86

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Sterling Infrastructure, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$440.0M
Cash generated from operations
Stock Buybacks
$74.2M
Shares repurchased (TTM)
Capital Expenditures
$77.3M
Investment in assets
Dividends
None
No dividend program

STRL SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Sterling Infrastructure, Inc.. (CIK: 0000874238)

📋 Recent SEC Filings

Date Form Document Action
Apr 8, 2026 8-K strl-20260408.htm View →
Mar 27, 2026 4 xslF345X06/wk-form4_1774641943.xml View →
Mar 25, 2026 DEF 14A strl-20260324.htm View →
Mar 16, 2026 4 xslF345X05/wk-form4_1773692321.xml View →
Mar 11, 2026 4 xslF345X05/wk-form4_1773260738.xml View →

Frequently Asked Questions about STRL

What is the AI rating for STRL?

Sterling Infrastructure, Inc.. (STRL) has an AI rating of BUY with 74% confidence, based on fundamental analysis of SEC EDGAR filings.

What are STRL's key strengths?

Claude: Exceptional cash generation with $362.7M FCF and 14.6% FCF margin demonstrating strong operational efficiency. Fortress balance sheet with 0.25x debt-to-equity ratio and 130.9x interest coverage providing financial flexibility.

What are the risks of investing in STRL?

Claude: Significant margin compression: net income declined 6.3% while revenue grew 17.7%, suggesting cost pressure or operational inefficiencies at scale. Tight liquidity position with 1.01x current ratio limiting short-term operational flexibility.

What is STRL's revenue and growth?

Sterling Infrastructure, Inc.. reported revenue of $2.5B.

Does STRL pay dividends?

Sterling Infrastructure, Inc.. does not currently pay dividends.

Where can I find STRL SEC filings?

Official SEC filings for Sterling Infrastructure, Inc.. (CIK: 0000874238) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is STRL's EPS?

Sterling Infrastructure, Inc.. has a diluted EPS of $9.38.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is STRL a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Sterling Infrastructure, Inc.. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.

Is STRL stock overvalued or undervalued?

Valuation metrics for STRL: ROE of 26.2% (sector avg: 15%), net margin of 11.7% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.

Should I buy STRL stock in 2026?

Our dual AI analysis gives Sterling Infrastructure, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is STRL's free cash flow?

Sterling Infrastructure, Inc..'s operating cash flow is $440.0M, with capital expenditures of $77.3M. FCF margin is 14.6%.

How does STRL compare to other Industrial stocks?

Vs Industrial sector averages: Net margin 11.7% (avg: 10%), ROE 26.2% (avg: 15%), current ratio 1.01 (avg: 1.8).

Why is STRL's return on equity (ROE) so high?

Sterling Infrastructure, Inc.. has a return on equity of 26.2%, significantly above the Industrial sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 11.7% net margin.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 16, 2026 | Data as of: 2025-12-31 | Powered by Claude AI