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STRL

Sterling Construction CompanyNasdaqGS:STRL Stock Report

Last Price

US$26.35

Market Cap

US$778.7m

7D

-5.5%

1Y

11.3%

Updated

21 Jan, 2022

Data

Company Financials +
STRL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends0/6

STRL Stock Overview

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.

Sterling Construction Company Competitors

Quanta Services

NYSE:PWR

US$14.0b

Comfort Systems USA

NYSE:FIX

US$3.2b

Granite Construction

NYSE:GVA

US$1.6b

MYR Group

NasdaqGS:MYRG

US$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for Sterling Construction Company
Historical stock prices
Current Share PriceUS$26.35
52 Week HighUS$29.67
52 Week LowUS$19.20
Beta1.28
1 Month Change2.17%
3 Month Change15.77%
1 Year Change11.28%
3 Year Change95.48%
5 Year Change186.73%
Change since IPO1,305.33%

Recent News & Updates

Dec 28

Sterling Construction: Seeing The First Insider Selling In Years

Today, we are revisiting Sterling Construction for the first time since the the middle of this summer. The stock has risen some 15% since then. Recently, the company posted quarterly results and the stock has seen the first insider selling in over three years. A full and updated investment analysis is provided in the paragraphs below.

Shareholder Returns

STRLUS ConstructionUS Market
7D-5.5%-8.1%-6.1%
1Y11.3%7.8%4.2%

Return vs Industry: STRL matched the US Construction industry which returned 11.2% over the past year.

Return vs Market: STRL exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is STRL's price volatile compared to industry and market?
STRL volatility
STRL Average Weekly Movement5.9%
Construction Industry Average Movement5.8%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: STRL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: STRL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19552,600Joe Cutillohttps://www.strlco.com

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. The company undertakes various heavy civil construction projects, including highways, roads, bridges, airfields, ports, light rail, water, wastewater and storm drainage systems for the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads. It offers specialty services such as foundations for multi-family homes, parking structures, and other commercial concrete projects for blue-chip end users in the e-commerce, data center, distribution center and warehousing, energy, mixed use, and multi-family sectors.

Sterling Construction Company Fundamentals Summary

How do Sterling Construction Company's earnings and revenue compare to its market cap?
STRL fundamental statistics
Market CapUS$778.75m
Earnings (TTM)US$57.56m
Revenue (TTM)US$1.53b

13.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STRL income statement (TTM)
RevenueUS$1.53b
Cost of RevenueUS$1.32b
Gross ProfitUS$205.69m
ExpensesUS$148.13m
EarningsUS$57.56m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.95
Gross Margin13.46%
Net Profit Margin3.77%
Debt/Equity Ratio100.5%

How did STRL perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STRL ($26.35) is trading below our estimate of fair value ($80.81)

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 (13.5x) compared to the US Construction industry average (25.8x).

PE vs Market: STRL is good value based on its PE Ratio (13.5x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: STRL is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: STRL is overvalued based on its PB Ratio (2.4x) compared to the US Construction industry average (2.3x).


Future Growth

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

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRL's forecast earnings growth (15.6% per year) is above the savings rate (2%).

Earnings vs Market: STRL's earnings (15.6% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: STRL's earnings are forecast to grow, but not significantly.

Revenue vs Market: STRL's revenue (3.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: STRL's revenue (3.1% 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?

50.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STRL has high quality earnings.

Growing Profit Margin: STRL's current net profit margins (3.8%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: STRL has become profitable over the past 5 years, growing earnings by 50.6% per year.

Accelerating Growth: STRL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STRL had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Construction industry average (17.9%).


Return on Equity

High ROE: STRL's Return on Equity (18.5%) is considered low.


Financial Health

How is Sterling Construction Company's financial position?


Financial Position Analysis

Short Term Liabilities: STRL's short term assets ($466.0M) exceed its short term liabilities ($357.7M).

Long Term Liabilities: STRL's short term assets ($466.0M) exceed its long term liabilities ($383.5M).


Debt to Equity History and Analysis

Debt Level: STRL's net debt to equity ratio (64.1%) is considered high.

Reducing Debt: STRL's debt to equity ratio has increased from 10.1% to 100.5% over the past 5 years.

Debt Coverage: STRL's debt is well covered by operating cash flow (50.1%).

Interest Coverage: STRL's interest payments on its debt are well covered by EBIT (4.9x 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?

4.0yrs

Average management tenure


CEO

Joe Cutillo (55 yo)

4.92yrs

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 ($USD3.90M) is above average for companies of similar size in the US market ($USD2.38M).

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 (4 years average tenure).


Board Members

Experienced Board: STRL's board of directors are considered experienced (3.3 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.2%.


Top Shareholders

Company Information

Sterling Construction Company, Inc.'s 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
  • Implied Market Cap: US$778.747m
  • Shares outstanding: 29.55m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:37
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
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.