📊 STRL Key Takeaways
Is Sterling Infrastructure, Inc.. (STRL) a Good Investment?
Sterling Infrastructure demonstrates strong revenue growth of 17.7% YoY with exceptional free cash flow generation ($145.9M, 17.7% margin) and a fortress balance sheet (0.23x debt/equity). While net income declined 6.3% despite revenue growth indicating margin compression from cost pressures, the company's robust operational cash flow, conservative capital allocation, and substantial cash reserves ($511.9M) position it well to navigate construction cycle headwinds and fund shareholder returns.
Why Buy Sterling Infrastructure, Inc.. Stock? STRL Key Strengths
- Strong revenue growth of 17.7% YoY demonstrates healthy market demand and business momentum
- Exceptional free cash flow of $145.9M with 17.7% FCF margin indicates high-quality earnings
- Very healthy balance sheet with 0.23x debt/equity ratio and 44.5x interest coverage provides significant financial flexibility
- Fortress cash position of $511.9M relative to $272.3M long-term debt provides substantial downside protection
- EPS growing 13.4% YoY despite net income decline suggests efficient capital management and favorable share count dynamics
STRL Stock Risks: Sterling Infrastructure, Inc.. Investment Risks
- Net income declined 6.3% YoY despite 17.7% revenue growth, indicating material margin compression from labor and material cost pressures
- Tight liquidity metrics (1.10x current and quick ratios) could constrain flexibility if working capital needs spike or market deteriorates
- Modest returns on equity (8.1%) and assets (3.4%) suggest below-average capital efficiency
- Gross margin of 23.5% is dependent on contract mix and industry pricing power in construction sector
- Construction industry cyclicality poses risk to revenue sustainability if economic conditions weaken
Key Metrics to Watch
- Gross margin trend and operating margin sustainability amid cost pressures
- Free cash flow generation relative to capital deployment and debt paydown decisions
- Backlog and contract pipeline to assess revenue visibility beyond current period
- Working capital efficiency and current ratio improvement to assess liquidity health
Sterling Infrastructure, Inc.. (STRL) Financial Metrics & Key Ratios
💡 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
STRL vs Industrial Sector: How Sterling Infrastructure, Inc.. Compares
How Sterling Infrastructure, Inc.. compares to Industrial sector averages
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.. has mixed fundamental signals relative to the Industrial sector in 2026.
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
STRL Revenue & Earnings Growth: 5-Year Financial Trend
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
STRL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $430.9M | $39.5M | $1.28 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sterling Infrastructure, Inc.. Dividends, Buybacks & Capital Allocation
STRL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sterling Infrastructure, Inc.. (CIK: 0000874238)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STRL
What is the AI rating for STRL?
Sterling Infrastructure, Inc.. (STRL) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STRL's key strengths?
Claude: Strong revenue growth of 17.7% YoY demonstrates healthy market demand and business momentum. Exceptional free cash flow of $145.9M with 17.7% FCF margin indicates high-quality earnings.
What are the risks of investing in STRL?
Claude: Net income declined 6.3% YoY despite 17.7% revenue growth, indicating material margin compression from labor and material cost pressures. Tight liquidity metrics (1.10x current and quick ratios) could constrain flexibility if working capital needs spike or market deteriorates.
What is STRL's revenue and growth?
Sterling Infrastructure, Inc.. reported revenue of $825.7M.
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 $3.09.
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 May 2026, Sterling Infrastructure, Inc.. has a BUY rating with 72% 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 8.1% (sector avg: 15%), net margin of 11.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
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 $165.6M, with capital expenditures of $19.6M. FCF margin is 17.7%.
How does STRL compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 11.6% (avg: 10%), ROE 8.1% (avg: 15%), current ratio 1.10 (avg: 1.8).