Is the business good?
How good a business is STRL?
Sterling Infrastructure, Inc. earns 40% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
40%
Return on invested capital · cost of capital 9.0% · 31 points above what the capital costs: growth creates value
- Operating margin
- 18%
Operating margin · Engineering & Construction median 7.4% · 12 months to Q2 2026
- Cash conversion
- 1.12×
Cash conversion · 1.53× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +1.2%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 7.5% |
| FY2021 | 7.6% |
| FY2022 | 9.0% |
| FY2023 | 10% |
| FY2024 | 13% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q2 2026
- 24%
- Operating margin12 months to Q2 2026
- 18%
- Net margin12 months to Q2 2026
- 13%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $3.44B
- Free cash flow, trailing twelve months
- $482M
- Net income, trailing twelve months
- $431M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 40%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Engineering & Construction
Ranks #5 of 27 by Smart Score