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Sterling Infrastructure (STRL) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Industrials•Engineering & Construction
A
ExcellentMetricSide Score: 98/100
ProfitabilityProfit30/30
GrowthGrowth25/25
Balance SheetBalance25/25
Cash QualityCash18/20
Price & Volume
Market Cap $21.48B

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

Moat Signals

Competitive analysis based on 60 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~17.5% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Strong Moat

Consistently high ROE averaging 29.1% suggests a durable competitive advantage and efficient capital allocation.

Cash Generation

Moderate Moat

8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (6 of 7 quarters up), with ~39.4% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 60 quarters

Low Risk

Margin Pressure

Watch

Operating margins declined 5.6% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Healthy

FCF covers net income by 1.5x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 0.2 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$2.88B
37.0%
Q. Revenue
$825.67M
TTM EBITDA
$608.94M
27.4%
TTM Op. Income
$488.24M
30.3%
Q. Op. Income
$137.44M
TTM Net Income
$346.64M
30.4%
Q. Net Income
$95.97M
EPS
$3.13
Shares Out.
$30.65M
0.3%
$2.88B in TTM revenue grew 37.0% YoY, reaching $825.67M last quarter. TTM EBITDA of $608.94M and TTM operating income of $488.24M shows growth is flowing through. Net income of $346.64M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
23.5%
6.9%
EBITDA Margin
19.4%
Op. Margin
16.6%
24.4%
Net Margin
11.6%
26.9%
Op. margin of 16.6% is up 3.3% YoY — cost efficiency is improving. Net margin at 11.6% and gross margin of 23.5% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
62.0x
P/S Ratio
7.4x
P/B Ratio
18.1x
At 62.0x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 7.4x and P/B of 18.1x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$2.78B
Cash
$511.86M
Long-Term Debt
$272.32M
Book Value
$1.19B
D/E Ratio
0.2
Debt/EBITDA
1.7
With $2.78B in assets and $272.32M in long-term debt, the D/E of 0.2and book value of $1.19B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$165.57M
Free Cash Flow
$145.94M
118.0%
FCF Margin
5.1%
FCF / Net Income
1.5
FCF of $145.94M on $165.57M in operating cash flow. The FCF / Net Income ratio of 0.4x indicates partial cash conversion — earnings quality needs attention.

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