Quality Investor

Sterling Infrastructure, Inc.

Rank #387Hypergrowth

STRL · Nasdaq · Industrials

Sterling Infrastructure, Inc. (STRL) — Rank #387 by gross profitability (GP/assets 0.18) · ROE 21.4% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · 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.

Show more

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

Price History

STRL+2111.3% · +85.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$14.19B

P/E (annual)

49.4

P/S (annual)

5.7

P/B

10.5

P/OCF (annual)

32.2

Shareholder Yield

-33.7%

Employees

6,200

Industry

Engineering & Construction

Exchange

Nasdaq

Signal Flags

2 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

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

1/2 pass
Revenue growth
260.8%
Piotroski F-Score
5 / 9
Share dilution
33.7%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

17.0%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 33.7% — per-share value needs a total required return of 50.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 15.8%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

12.2%

r = 10% (base)

17.0%

r = 12%

21.2%

Net debt / market cap: -1.3%

Base FCF: $362.7M3Y mean FCF: $16M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

27.0xExpensive
5.3xmed 8.0x27.0x

P / S

Price / revenue per share

0.3xFair
0.1xmed 0.3x324.5x

P / B

Price / book value per share

2.2xFair
0.5xmed 2.0x692.5x

P / GP

Price / gross profit per share

3.5xCheap
2.2xmed 4.3x3708.3x

P / FCF

Price / free cash flow per share

22.8xCheap
6.5xmed 114.5x4433.0x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.18

Primary signal (Novy-Marx).

Return on equity

21.4%

Gross margin

23.0%

Revenue growth (YoY)

260.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2014201520162017
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

39.7%

FCF CAGR (3Y)

Anti-fragile safety

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.

Cash-flow health

Free cash flow

$362.68M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.25

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.0%

Stock-based comp intensity.

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20122017
Hypergrowth
Decline
Startup