Quality Investor

Sterling Infrastructure, Inc.

Rank #364Op. LeverageWatchlistCompare with other stocks

STRL · Nasdaq · Industrials

Sterling Infrastructure, Inc. (STRL) — Rank #364 by gross profitability (GP/assets 0.18) · ROE 21.4% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · CIK 0000874238 · all metrics point-in-time as of the filing date.

About

Sterling Infrastructure, Inc. engages in the provision of e-infrastructure, transportation, and building solutions in the United States.

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It operates through three segments: E-Infrastructure, Transportation, and Building Solutions. The E-Infrastructure Solutions segment provides site development services for the blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors. Its Transportation Solutions segment is involved in the development of infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems for the departments of transportation, regional transit, airport, port, water, and railroads authorities. The Building Solutions segment offers residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, and other concrete work for developers and general contractors, as well as plumbing and surveys services for residential builds. It operates in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions, and the Pacific Islands. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022. Sterling Infrastructure, Inc.

was founded in 1955 and is headquartered in The Woodlands, Texas.

Industry
Engineering & Construction
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
strlco.com

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

7,000

Industry

Engineering & Construction

Exchange

Nasdaq

12/12

Flags passed

STRL passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · RPO outpacing revenue · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.18
Return on equity
21.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.30
Current ratio
1.11×
Net cash
$180.58M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.0%

Growth

2/2 pass
Revenue growth
17.7%
Piotroski F-Score
6 / 9
Share dilution
-0.6%

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.18

Gross profitability (GP / assets)

0.18

Primary signal (Novy-Marx).

Return on equity

21.4%

Gross margin

23.0%

Revenue growth (YoY)

17.7%

RPO growth (YoY)

77.8%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

12.1%

Revenue CAGR (5Y)

15.2%

Earnings CAGR (3Y)

39.7%

FCF CAGR (3Y)

31.9%

Cash Flow Health

Is the cash real?

No warning flags · FCF 25% above net income

Free cash flow

$362.68M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

25.0%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.0%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $180.58M, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.30

Current ratio

1.11×

Quick ratio

0.56×

Net cash

$180.58M

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.3 / 5

Fair
Share count trend(net buybacks)
-0.6%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
-9.4%1/5 Weak

Lifecycle Phase History

20202025
Hypergrowth
Op. Leverage
Value

Price History

STRL+2114.7% · +85.5% CAGRSPY+82.9% · +12.8% CAGR