Loading...

Sterling Construction Company

Nasdaq:STRL
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STRL
Nasdaq
$320M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Sterling Construction Company, Inc., together with its subsidiaries, operates as a heavy civil and residential construction company in Arizona, California, Colorado, Hawaii, Nevada, Texas, Utah, and other states in the United States. The last earnings update was 75 days ago. More info.


Add to Portfolio Compare Print
STRL Share Price and Events
7 Day Returns
-10.1%
NasdaqGS:STRL
-2.4%
US Construction
-1.2%
US Market
1 Year Returns
-10.3%
NasdaqGS:STRL
-3.5%
US Construction
3.4%
US Market
STRL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sterling Construction Company (STRL) -10.1% -8.5% -10.9% -10.3% 114.3% 33.4%
US Construction -2.4% 1% -0.5% -3.5% 17% 6.2%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • STRL underperformed the Construction industry which returned -3.5% over the past year.
  • STRL underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
STRL
Industry
5yr Volatility vs Market

STRL Value

 Is Sterling Construction Company undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sterling Construction Company to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sterling Construction Company.

NasdaqGS:STRL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:STRL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.036 (1 + (1- 21%) (28.96%))
1.183
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.183 * 5.96%)
9.78%

Discounted Cash Flow Calculation for NasdaqGS:STRL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sterling Construction Company is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:STRL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.78%)
2020 35.00 Analyst x1 31.88
2021 35.29 Est @ 0.82% 29.28
2022 35.78 Est @ 1.39% 27.04
2023 36.42 Est @ 1.79% 25.07
2024 37.18 Est @ 2.07% 23.31
2025 38.02 Est @ 2.27% 21.72
2026 38.94 Est @ 2.41% 20.26
2027 39.91 Est @ 2.51% 18.92
2028 40.94 Est @ 2.57% 17.67
2029 42.01 Est @ 2.62% 16.52
Present value of next 10 years cash flows $231.68
NasdaqGS:STRL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $42.01 × (1 + 2.73%) ÷ (9.78% – 2.73%)
$612.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $612.02 ÷ (1 + 9.78%)10
$240.70
NasdaqGS:STRL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $231.68 + $240.70
$472.38
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $472.38 / 26.42
$17.88
NasdaqGS:STRL Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.88
Current discount Discount to share price of $12.13
= -1 x ($12.13 - $17.88) / $17.88
32.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sterling Construction Company is available for.
Intrinsic value
32%
Share price is $12.13 vs Future cash flow value of $17.88
Current Discount Checks
For Sterling Construction Company to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sterling Construction Company's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sterling Construction Company's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sterling Construction Company's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sterling Construction Company's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:STRL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.92
NasdaqGS:STRL Share Price ** NasdaqGS (2019-07-19) in USD $12.13
United States of America Construction Industry PE Ratio Median Figure of 29 Publicly-Listed Construction Companies 18.25x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sterling Construction Company.

NasdaqGS:STRL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:STRL Share Price ÷ EPS (both in USD)

= 12.13 ÷ 0.92

13.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sterling Construction Company is good value based on earnings compared to the US Construction industry average.
  • Sterling Construction Company is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Sterling Construction Company's expected growth come at a high price?
Raw Data
NasdaqGS:STRL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
30.5%per year
United States of America Construction Industry PEG Ratio Median Figure of 24 Publicly-Listed Construction Companies 1.09x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:STRL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.25x ÷ 30.5%

0.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sterling Construction Company is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Sterling Construction Company's assets?
Raw Data
NasdaqGS:STRL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $6.19
NasdaqGS:STRL Share Price * NasdaqGS (2019-07-19) in USD $12.13
United States of America Construction Industry PB Ratio Median Figure of 35 Publicly-Listed Construction Companies 1.71x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGS:STRL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:STRL Share Price ÷ Book Value per Share (both in USD)

= 12.13 ÷ 6.19

1.96x

* Primary Listing of Sterling Construction Company.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sterling Construction Company is overvalued based on assets compared to the US Construction industry average.
X
Value checks
We assess Sterling Construction Company's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Sterling Construction Company has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STRL Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sterling Construction Company expected to grow at an attractive rate?
  • Sterling Construction Company's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Sterling Construction Company's earnings growth is expected to exceed the United States of America market average.
  • Sterling Construction Company's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:STRL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:STRL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 30.5%
NasdaqGS:STRL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 6.5%
United States of America Construction Industry Earnings Growth Rate Market Cap Weighted Average 25.8%
United States of America Construction Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:STRL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:STRL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,168 60 41 2
2019-12-31 1,102 60 30 2
NasdaqGS:STRL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,039 43 25
2018-12-31 1,038 39 25
2018-09-30 1,036 44 23
2018-06-30 1,049 28 21
2018-03-31 1,027 5 16
2017-12-31 958 25 12
2017-09-30 872 14 2
2017-06-30 774 5 -3
2017-03-31 717 40 -4
2016-12-31 690 44 -9
2016-09-30 674 41 -23
2016-06-30 645 39 -25

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sterling Construction Company's earnings are expected to grow significantly at over 20% yearly.
  • Sterling Construction Company's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:STRL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Sterling Construction Company Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STRL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.47 1.53 1.40 2.00
2019-12-31 1.15 1.18 1.11 2.00
NasdaqGS:STRL Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.92
2018-12-31 0.94
2018-09-30 0.84
2018-06-30 0.78
2018-03-31 0.61
2017-12-31 0.44
2017-09-30 0.09
2017-06-30 -0.10
2017-03-31 -0.17
2016-12-31 -0.40
2016-09-30 -1.00
2016-06-30 -1.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sterling Construction Company will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sterling Construction Company's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sterling Construction Company has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STRL Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sterling Construction Company's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sterling Construction Company has delivered over 20% year on year earnings growth in the past 5 years.
  • Sterling Construction Company's 1-year earnings growth is less than its 5-year average (49.8% vs 68%)
  • Sterling Construction Company's earnings growth has exceeded the US Construction industry average in the past year (49.8% vs -7.4%).
Earnings and Revenue History
Sterling Construction Company's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sterling Construction Company Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STRL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,039.12 24.51 50.77
2018-12-31 1,037.67 25.19 50.62
2018-09-30 1,036.40 22.66 49.48
2018-06-30 1,049.36 20.88 50.90
2018-03-31 1,027.03 16.36 50.09
2017-12-31 957.96 11.62 48.35
2017-09-30 872.39 2.19 45.50
2017-06-30 773.80 -2.53 41.52
2017-03-31 716.97 -4.17 37.36
2016-12-31 690.12 -9.24 36.84
2016-09-30 674.27 -22.79 37.45
2016-06-30 644.64 -24.95 37.72
2016-03-31 632.48 -29.51 38.66
2015-12-31 623.60 -39.18 36.37
2015-09-30 624.72 -26.53 37.80
2015-06-30 637.99 -30.72 37.71
2015-03-31 655.37 -26.98 37.62
2014-12-31 672.23 -9.78 36.90
2014-09-30 644.53 -61.25 42.79
2014-06-30 641.19 -58.25 41.65
2014-03-31 579.74 -74.98 41.62
2013-12-31 556.24 -81.62 42.75
2013-09-30 588.41 -22.72 36.09
2013-06-30 607.76 -21.55 38.17
2013-03-31 643.12 -3.52 37.13
2012-12-31 630.51 -4.29 35.19
2012-09-30 586.41 -48.90 31.73

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sterling Construction Company has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sterling Construction Company used its assets more efficiently than the US Construction industry average last year based on Return on Assets.
  • Sterling Construction Company has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Sterling Construction Company's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sterling Construction Company has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STRL Health

 How is Sterling Construction Company's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sterling Construction Company's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sterling Construction Company is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sterling Construction Company's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sterling Construction Company's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sterling Construction Company Company Filings, last reported 3 months ago.

NasdaqGS:STRL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 166.28 77.32 56.76
2018-12-31 172.26 82.02 94.10
2018-09-30 169.70 81.44 89.34
2018-06-30 160.09 86.58 66.59
2018-03-31 150.29 86.16 55.46
2017-12-31 146.19 90.14 83.95
2017-09-30 142.54 89.61 66.54
2017-06-30 133.19 89.16 60.06
2017-03-31 106.84 4.30 37.15
2016-12-31 108.09 5.39 42.79
2016-09-30 114.46 11.61 43.02
2016-06-30 110.90 17.90 42.64
2016-03-31 88.81 32.13 14.92
2015-12-31 95.75 20.18 4.43
2015-09-30 122.47 35.68 11.49
2015-06-30 121.39 38.28 14.34
2015-03-31 124.47 34.44 17.20
2014-12-31 141.15 37.99 22.84
2014-09-30 146.95 37.77 17.00
2014-06-30 149.11 20.10 14.28
2014-03-31 132.42 21.28 1.29
2013-12-31 132.79 8.47 1.87
2013-09-30 208.58 20.79 26.03
2013-06-30 205.66 29.70 22.03
2013-03-31 223.51 12.10 25.72
2012-12-31 227.31 24.27 52.35
2012-09-30 231.08 10.28 54.49
  • Sterling Construction Company's level of debt (46.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (16% vs 46.5% today).
  • Debt is well covered by operating cash flow (55.3%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Sterling Construction Company's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sterling Construction Company has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STRL Dividends

 What is Sterling Construction Company's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sterling Construction Company dividends.
If you bought $2,000 of Sterling Construction Company shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sterling Construction Company's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Sterling Construction Company's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:STRL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Construction Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:STRL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Sterling Construction Company has not reported any payouts.
  • Unable to verify if Sterling Construction Company's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sterling Construction Company's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sterling Construction Company has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Sterling Construction Company's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sterling Construction Company afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sterling Construction Company has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STRL Management

 What is the CEO of Sterling Construction Company's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joe Cutillo
COMPENSATION $8,308,461
AGE 53
TENURE AS CEO 2.2 years
CEO Bio

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. Cutillo serves as Director of Sterling Construction Company, Inc. since 2017. Mr. Cutillo has nearly 30 years of executive management experience and a deep understanding of emerging opportunities in heavy civil construction, industrial and adjacent markets. He joined Sterling Construction Company, Inc. in October 2015. He served as the Chief Business Development Officer and Executive Vice President of Sterling Construction Company, Inc. until since May 2016 until February 2017. Mr. Cutillo served as the Chief Executive Officer and President of Inland Pipe Rehabilitation LLC (IPR) from August 2008 to October 15, 2015, over which time he grew the business from a start-up acquisition to the second largest trenchless rehabilitation pipe business in the U.S. Mr. Cutillo served as Sterling’s Executive Vice President Chief Business Development Officer. Mr. Cutillo was spearheading Houston-based IPR's growth strategy of the nation's leading trenchless underground rehabilitation contracting. Mr. Cutillo served 10 years at Ingersoll-Rand, where he served as Vice President of Manufacturing and Vice President of Service and Contracting. Prior to joining IPR, Mr. Cutillo served as President of West Chester, Ohio based CONTECH Drainage Solutions. From 2005 to 2008, Mr. Cutillo served as President of CONTECH Drainage Solutions for Contech Engineered Solutions LLC (alternative name CONTECH Construction Products, Inc.). Prior to joining Ingersoll-Rand, he worked for GE's Aerospace, Aircraft Engines and Lighting divisions in various operations and engineering roles. Mr. Cutillo held a series of increasingly responsible management roles at General Electric Corporation. He earned a Bachelor of Science degree in Mechanical Engineering from Northeastern University.

CEO Compensation
  • Joe's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Joe's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Sterling Construction Company management team in years:

2.2
Average Tenure
60
Average Age
  • The tenure for the Sterling Construction Company management team is about average.
Management Team

Joe Cutillo

TITLE
CEO, President & Director
COMPENSATION
$8M
AGE
53
TENURE
2.2 yrs

Ron Ballschmiede

TITLE
Executive VP
COMPENSATION
$4M
AGE
63
TENURE
3.8 yrs

Con Wadsworth

TITLE
Executive VP & COO
COMPENSATION
$1M
AGE
58
TENURE
3.3 yrs

Craig Allen

TITLE
Senior VP and Chief Compliance & Administration Officer
COMPENSATION
$500K
TENURE
0.5 yrs

Richard Chandler

TITLE
Executive VP
COMPENSATION
$2M
AGE
62
TENURE
1.8 yrs

Kevan Blair

TITLE
Senior Vice President of Corporate Finance
COMPENSATION
$415K
TENURE
5.8 yrs

Jennifer Maxwell

TITLE
Director of Investor Relations

Kate Sberna

TITLE
VP & Chief Talent Officer
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Sterling Construction Company board of directors in years:

2.2
Average Tenure
62
Average Age
  • The average tenure for the Sterling Construction Company board of directors is less than 3 years, this suggests a new board.
Board of Directors

Milton Scott

TITLE
Chairman of the Board
COMPENSATION
$275K
AGE
62
TENURE
4.3 yrs

Joe Cutillo

TITLE
CEO, President & Director
COMPENSATION
$8M
AGE
53
TENURE
2.2 yrs

Marian Davenport

TITLE
Independent Director
COMPENSATION
$172K
AGE
65
TENURE
5.5 yrs

Charles Patton

TITLE
Director
COMPENSATION
$157K
AGE
60
TENURE
6.1 yrs

Ray Messer

TITLE
Director
COMPENSATION
$163K
AGE
71
TENURE
2.2 yrs

Tom White

TITLE
Independent Director
COMPENSATION
$90K
AGE
62
TENURE
1 yrs

Dana O’Brien

TITLE
Director
AGE
51
TENURE
0.5 yrs

Roger Cregg

TITLE
Director
AGE
63
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Sterling Construction Company individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. May 19 Buy Roger Cregg Individual 09. May 19 09. May 19 10,000 $11.94 $119,400
X
Management checks
We assess Sterling Construction Company's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sterling Construction Company has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STRL News

Simply Wall St News

Is Sterling Construction Company, Inc. (NASDAQ:STRL) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sterling Construction Company: 17% = US$25m ÷ US$166m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Sterling Construction Company Have A Good Return On Equity? … Sterling Construction Company's Debt And Its 17% ROE While Sterling Construction Company does have some debt, with debt to equity of just 0.46, we wouldn't say debt is excessive.

Simply Wall St -

Is Sterling Construction Company (NASDAQ:STRL) A Risky Investment?

See our latest analysis for Sterling Construction Company What Is Sterling Construction Company's Debt? … NasdaqGS:STRL Historical Debt, July 8th 2019 A Look At Sterling Construction Company's Liabilities According to the last reported balance sheet, Sterling Construction Company had liabilities of US$162.0m due within 12 months, and liabilities of US$135.2m due beyond 12 months. … Since Sterling Construction Company does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

Did Business Growth Power Sterling Construction Company's (NASDAQ:STRL) Share Price Gain of 160%?

View our latest analysis for Sterling Construction Company In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … During three years of share price growth, Sterling Construction Company moved from a loss to profitability. … Sterling Construction Company is not the only stock insiders are buying.

Simply Wall St -

Should Sterling Construction Company, Inc. (NASDAQ:STRL) Be Your Next Stock Pick?

For those interested in digger a bit deeper into my commentary, take a look at the report on Sterling Construction Company here. … STRL's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. … NasdaqGS:STRL Income Statement, June 3rd 2019 Next Steps: For Sterling Construction Company, there are three pertinent aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for STRL’s future growth?

Simply Wall St -

Does Sterling Construction Company, Inc. (NASDAQ:STRL) Have A Particularly Volatile Share Price?

View our latest analysis for Sterling Construction Company What STRL's beta value tells investors Sterling Construction Company has a five-year beta of 1.05. … This is reasonably close to the market beta of 1, so the stock has in the past displayed similar levels of volatility to the overall market. … What this means for you: It is probable that there is a link between the share price of Sterling Construction Company and the broader market, since it has a beta value quite close to one.

Simply Wall St -

Are Investors Undervaluing Sterling Construction Company, Inc. (NASDAQ:STRL) By 29%?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $35.00 $35.00 $35.29 $35.78 $36.42 $37.18 $38.02 $38.94 $39.91 $40.94 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 0.82% Est @ 1.39% Est @ 1.79% Est @ 2.07% Est @ 2.27% Est @ 2.41% Est @ 2.51% Est @ 2.57% Present Value ($, Millions) Discounted @ 9.92% $31.84 $28.97 $26.57 $24.51 $22.69 $21.07 $19.61 $18.27 $17.03 $15.89 Present Value of 10-year Cash Flow (PVCF)= $226.44m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. … NasdaqGS:STRL Intrinsic value, May 13th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

How Financially Strong Is Sterling Construction Company, Inc. (NASDAQ:STRL)?

(NASDAQ:STRL) is a small-cap stock with a market capitalization of US$361m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

Should You Be Worried About Insider Transactions At Sterling Construction Company, Inc. (NASDAQ:STRL)?

So we'll take a look at whether insiders have been buying or selling shares in Sterling Construction Company, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable.

Simply Wall St -

Can Sterling Construction Company, Inc. (NASDAQ:STRL) Maintain Its Strong Returns?

Our data shows Sterling Construction Company has a return on equity of 17% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.17 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Sterling Construction Company, Inc.'s (NASDAQ:STRL) P/E Ratio Really That Good?

We'll show how you can use Sterling Construction Company, Inc.'s (NASDAQ:STRL) P/E ratio to inform your assessment of the investment opportunity. … Sterling Construction Company has a price to earnings ratio of 13.93, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

STRL Company Info

Description

Sterling Construction Company, Inc., together with its subsidiaries, operates as a heavy civil and residential construction company in Arizona, California, Colorado, Hawaii, Nevada, Texas, Utah, and other states in the United States. The company’s Heavy Civil Construction segment undertakes heavy civil construction projects, including highways, roads, bridges, airfields, ports, light rail, water, wastewater and storm drainage systems, foundations for multi-family homes, commercial concrete projects, and parking structures. This segment primarily serves the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads, as well as commercial construction customers. Its Residential Construction segment undertakes construction projects, such as concrete foundations for single-family homes. This segment serves home builders. The company was formerly known as Oakhurst Company, Inc. and changed its name to Sterling Construction Company, Inc. in November 2001. Sterling Construction Company, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.

Details
Name: Sterling Construction Company, Inc.
STRL
Exchange: NasdaqGS
Founded: 1955
$320,431,805
26,416,472
Website: http://www.strlco.com
Address: Sterling Construction Company, Inc.
1800 Hughes Landing Boulevard,
Suite 250,
The Woodlands,
Texas, 77380,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS STRL Common Stock Nasdaq Global Select US USD 08. Jul 1991
DB UAO Common Stock Deutsche Boerse AG DE EUR 08. Jul 1991
Number of employees
Current staff
Staff numbers
1,935
Sterling Construction Company employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/21 00:05
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/05/07
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.