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Sterling Construction Company Inc (STRL) Fair Value & Analysis

Industrials · US · Market cap $19.7B · ISIN US8592411016

What is Sterling Construction Company Inc really worth?

SC Sterling Construction Company Inc logo Sterling Construction Company Inc STRL · US
Price$460.03
Fair Value$198.57
Upside−56.8%
Quality64/100

A solid business, but trading 132% above our fair value of $198.57.

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Strengths

Healthy Growth (revenue 5y +15.2 %/yr)
Solidly profitable · 12.0% net margin
Low debt · generates free cash flow
Wide moat 69/100

Risks

!Mixed vs. peers (7/14)
Evidence: High Range $137.30 – $282.01

Fair value as of: Sep 5, 2026

From 26 valuation models · updated today

Share price −15.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($282.01). The favourable scenario is already priced in.
  • Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($137.30 to $282.01) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$993.74 $20.83 Fair Value $198.57 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range $20.83 – $993.74 · fair‑value band $137.30 – $282.01 · the $460.03 price screens above the $198.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Sterling Construction Company Inc (STRL) currently trades at $460.03, while our model-based Fair Value estimate is $198.57, implying the stock looks roughly 131.7% overvalued today. The Quality Score stands at 64/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $279.11 per share, and 0 of the 26 models we run sit above the $460.03 price. Bear case: the Asset-Based group reads lowest at $24.20, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Sterling Construction Company Inc generated revenue of $2.9B at a net margin of 12.0%. Revenue grew 91.6% year over year. It earns a return on equity of 36.7%. The balance sheet holds a net cash position of $40.8M. Fundamentals as of Sep 5, 2026

Our scenario range runs from $137.30 (bear case) to $282.01 (bull case); at $460.03, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 54% below its 52-week high and 141% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −57%, STRL screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $7.28 per share, which is 3.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $169.42 $316.75 $646.37 75
Growth DCF $165.51 $326.78 $577.81 75
EPV $101.43 $117.71 $131.96 74
All 26 models by family
DCF Models
FCF DCF $169.42 $316.75 $646.37 75
Owner Earnings $136.20 $268.21 $517.52 72
5Y Revenue Exit $126.19 $223.81 $360.12 71
5Y EBITDA Exit $156.72 $290.68 $465.86 73
5Y P/E Exit $152.13 $280.63 $434.65 69
10Y Revenue Exit $135.18 $235.97 $400.02 65
10Y EBITDA Exit $159.72 $286.73 $493.99 66
10Y P/E Exit $156.60 $279.11 $466.26 62
Earnings-Based
Graham-Dodd $64.30 $362.24 $503.25 63
Lynch FV $101.53 $145.05 $188.56 61
PEG = 1.0 $101.53 $145.05 $188.56 57
EPV $101.43 $117.71 $131.96 74
Dividend Discount
Gordon GGM $0.4000 $0.8400 $1.33 66
DDM Multi-Stage $0.4000 $0.7100 $0.8800 66
Multiples
P/E Multiple $148.93 $198.57 $248.21 63
P/S Multiple $120.56 $160.74 $200.93 58
P/B Multiple $120.56 $160.74 $200.93 55
EV/EBIT $175.56 $232.83 $290.10 66
EV/EBITDA $159.63 $211.59 $263.56 67
EV/Revenue $105.99 $149.80 $193.62 54
Asset-Based
NCAV (Graham) $18.06 $24.20 $36.12 54
Growth DCF
Growth DCF $165.51 $326.78 $577.81 75
Rev-Margin DCF $126.19 $220.78 $351.15 71
Economic Profit
Residual Income $70.51 $107.31 $1,031 64
ROIC Compounder $118.04 $159.74 $214.47 71
Growth Earnings
Growth-Adj P/E $151.85 $216.93 $282.01 67

Widest divergence: DCF Models ($279.11) versus Dividend Discount ($0.7100). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 88.5 as of Jun 6, 2026
P/S ratio 10.3 P/E × margin
EPS (TTM) $11.23 price ÷ EPS = P/E 88.5
Net margin 11.7% FY2025
Return on equity 36.7% TTM
Return on assets (EBIT) 12.0% avg 5y
More key figures
Profitability
Operating margin 17.2% TTM
Growth
Revenue (TTM) $2.9B TTM
Revenue growth (YoY) +91.6% 3y avg +12.1%
EPS growth (YoY) +141%
Balance sheet & cash flow
Free cash flow $363M FY2025
Net cash $40.8M FY2025

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 65 · Market factors (momentum, volatility) 40

Profitability 64
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 31
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 65
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sterling Construction Company Inc reported revenue of $2.5B in FY2025 versus $1.4B in FY2021, a compound +15.2%/yr. Reported net income was $290M in FY2025, compounding +46.7%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$2.5B
Latest YoY
+17.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.2%
Avg. revenue growth/yr (30Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+37.2% (37.2 + 0.0)
Revenue +15.2%/yr
FY21 $1.4B
FY22 $1.8B
FY23 $2.0B
FY24 $2.1B
FY25 $2.5B
Net income +46.7%/yr
FY21 $62.6M
FY22 $106M
FY23 $139M
FY24 $257M
FY25 $290M

STRL screens 132% overvalued. Compare with Quanta Services, Inc →

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Cite: Fair Value Calculator (2026). "Sterling Construction Company Inc Fair Value". https://www.fairvalue-calculator.com/stock/STRL

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Engineering & Construction · 816 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 64 · Top 25%
Fair Value upside −57% · Bottom 25%
Return on equity (TTM) 37% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 92% · Top 25%
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 88.5× · Pricier than 75% of peers
P/B 17.75× · Pricier than 75% of peers
P/S (TTM) 6.82× · Pricier than 75% of peers
P/FCF 54.3× · Pricier than 75% of peers
EV/EBITDA 33.7× · Pricier than 75% of peers
PEG 1.14× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 16
FUTURE100 · sector 11
PAST100 · sector 26
HEALTH88 · sector 94
DIVIDEND0 · sector 39

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
Quanta Services, Inc PWR $620.06 $143.92 −77%
Vinci SA DG €114.35 €185.62 +62%
Comfort Systems USA, Inc FIX $1,615 $519.97 −68%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 −46%
Ferrovial N.V FER €57.28 €19.17 −67%
HOCHTIEF Aktiengesellschaft HOT €426.40 €203.87 −52%
Samsung C&T Corporation 028260 373,000 KRW 261,411 KRW −30%
EMCOR Group EME $775.04 $549.47 −29%
MasTec, Inc MTZ $241.00 $100.00 −59%
Bouygues SA EN €46.65 €65.67 +41%

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Frequently asked questions

Is Sterling Construction Company Inc (STRL) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of $198.57 versus a price of $460.03, about −57% upside (overvalued).
What is the fair value of STRL?
Our model-based fair value for Sterling Construction Company Inc is $198.57 (as of Sep 5, 2026), built from audited fundamentals. The current price: $460.03.
What is the quality score of STRL?
Sterling Construction Company Inc has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Sterling Construction Company Inc (STRL)?
Sterling Construction Company Inc reported trailing-twelve-month revenue of about $2.9B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of STRL?
The net profit margin of Sterling Construction Company Inc is about 12.0%, meaning it keeps roughly 12.0% of revenue as net income. Based on the latest reported figures.
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