NasdaqGS:STRL

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Sterling Construction Company

Market Cap

US$603.6m

Last Updated

2021/07/28 23:01 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

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.


Market Performance


7 Day Return

0.9%

STRL

0.5%

US Construction

0.9%

US Market


1 Year Return

115.1%

STRL

86.9%

US Construction

37.8%

US Market

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.


Shareholder returns

STRLIndustryMarket
7 Day0.9%0.5%0.9%
30 Day-3.0%-4.0%0.3%
90 Day3.3%-6.8%2.1%
1 Year115.1%115.1%87.5%86.9%40.0%37.8%
3 Year66.6%66.6%49.9%47.3%63.8%53.5%
5 Year270.2%270.2%76.4%70.4%124.6%99.7%

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

Valuation

Is Sterling Construction Company undervalued compared to its fair value and its price relative to the market?

25.8%

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).


Future Growth

How is Sterling Construction Company forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.5%

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


Past Performance

How has Sterling Construction Company performed over the past 5 years?

61.8%

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.


Financial Health

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).


Balance Sheet


Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Joe Cutillo (55 yo)

4.17yrs

Tenure

US$3,903,216

Compensation

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.


Leadership Team

Experienced Management: STRL's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: STRL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Sterling Construction Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Sterling Construction Company, Inc.
  • 1800 Hughes Landing Boulevard
  • Suite 250
  • The Woodlands
  • Texas
  • 77380
  • United States

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 23:01
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.