Sterling Construction Company, Inc., a construction company, engages in the heavy civil, specialty services, and residential construction activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. More Details
Very undervalued with adequate balance sheet.
Share Price & News
How has Sterling Construction Company's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STRL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: STRL's weekly volatility (7%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: STRL exceeded the US Construction industry which returned 86.9% over the past year.
Return vs Market: STRL exceeded the US Market which returned 37.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Sterling Construction Company's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StHere's Why I Think Sterling Construction Company (NASDAQ:STRL) Might Deserve Your Attention Today
1 month ago | Simply Wall StAnnouncing: Sterling Construction Company (NASDAQ:STRL) Stock Soared An Exciting 335% In The Last Five Years
1 month ago | Simply Wall StIs Sterling Construction Company, Inc. (NASDAQ:STRL) Trading At A 25% Discount?
Is Sterling Construction Company undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STRL ($21.73) is trading below our estimate of fair value ($29.29)
Significantly Below Fair Value: STRL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STRL is good value based on its PE Ratio (12.2x) compared to the US Construction industry average (23.3x).
PE vs Market: STRL is good value based on its PE Ratio (12.2x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: STRL is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: STRL is good value based on its PB Ratio (2.3x) compared to the US Construction industry average (2.5x).
How is Sterling Construction Company forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STRL's forecast earnings growth (12.5% per year) is above the savings rate (2%).
Earnings vs Market: STRL's earnings (12.5% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: STRL's earnings are forecast to grow, but not significantly.
Revenue vs Market: STRL's revenue (4.5% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: STRL's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if STRL's Return on Equity is forecast to be high in 3 years time
How has Sterling Construction Company performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STRL has high quality earnings.
Growing Profit Margin: STRL's current net profit margins (3.4%) are higher than last year (3.4%).
Past Earnings Growth Analysis
Earnings Trend: STRL has become profitable over the past 5 years, growing earnings by 61.8% per year.
Accelerating Growth: STRL's earnings growth over the past year (20.7%) is below its 5-year average (61.8% per year).
Earnings vs Industry: STRL earnings growth over the past year (20.7%) underperformed the Construction industry 26.7%.
Return on Equity
High ROE: STRL's Return on Equity (18.6%) is considered low.
How is Sterling Construction Company's financial position?
Financial Position Analysis
Short Term Liabilities: STRL's short term assets ($355.2M) exceed its short term liabilities ($322.2M).
Long Term Liabilities: STRL's short term assets ($355.2M) exceed its long term liabilities ($349.3M).
Debt to Equity History and Analysis
Debt Level: STRL's debt to equity ratio (125%) is considered high.
Reducing Debt: STRL's debt to equity ratio has increased from 35.9% to 125% over the past 5 years.
Debt Coverage: STRL's debt is well covered by operating cash flow (42.7%).
Interest Coverage: STRL's interest payments on its debt are well covered by EBIT (3.9x coverage).
What is Sterling Construction Company current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate STRL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate STRL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if STRL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if STRL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of STRL's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Cutillo (55 yo)
Mr. Joseph A. Cutillo, also known as Joe, has been the President of Sterling Construction Company, Inc. since February 2017 and has been its Chief Executive Officer and Director since April 28, 2017. Mr. C...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD3.90M) is above average for companies of similar size in the US market ($USD2.44M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Experienced Management: STRL's management team is considered experienced (3.3 years average tenure).
Experienced Board: STRL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.
Sterling Construction Company, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Sterling Construction Company, Inc.
- Ticker: STRL
- Exchange: NasdaqGS
- Founded: 1955
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: US$603.596m
- Shares outstanding: 28.61m
- Website: https://www.strlco.com
Number of Employees
- Sterling Construction Company, Inc.
- 1800 Hughes Landing Boulevard
- Suite 250
- The Woodlands
- United States
Sterling Construction Company, Inc., a construction company, engages in the heavy civil, specialty services, and residential construction activities primarily in the southern United States, the Rocky Mount...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/28 23:01|
|End of Day Share Price||2021/07/28 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.