Sterling Infrastructure Inc (STRL, Financial) shares jumped by 3.96% today, reaching a price of $140.59. The movement in the stock was influenced by the announcement that the company will be joining the S&P SmallCap 600 index, replacing Patterson due to its acquisition. This change is scheduled to take effect before trading begins on April 17, 2025.
Sterling Infrastructure Inc, operating in the Industrials sector, focuses on heavy civil infrastructure construction, infrastructure rehabilitation, and residential construction projects. The company is organized into three segments: Transportation Solutions, E-Infrastructure Solutions, and Building Solutions. Notably, a significant portion of its revenue stems from the E-Infrastructure Solutions division, which provides services to major e-commerce, data center, and energy sectors.
Financially, Sterling Infrastructure shows a price-to-earnings (P/E) ratio of 16.98 and a price-to-book (P/B) ratio of 5.34, reflecting the company's strong financial position. The company also maintains a robust Altman Z-Score of 4.32, indicating minimal bankruptcy risk. Furthermore, the Piotroski F-Score is high at 8, suggesting a healthy financial status.
In terms of growth, Sterling Infrastructure has demonstrated consistent performance with a 3-year revenue growth rate of 11.8% and an EBITDA growth rate of 43.7%. Its earnings growth over the last 3 years stands at 40.9%, showcasing its ability to grow profits effectively.
Valuation-wise, Sterling Infrastructure's GF Value is currently considered "Significantly Overvalued" at $70.48. Investors can view the comprehensive GF Value analysis for Sterling Infrastructure on the GF Value page. Despite the overvaluation status, the company has maintained strong profitability metrics, such as an EBITDA margin of 21.36% and a return on equity (ROE) of 37.22%.
With continued strong financials and growth prospects, Sterling Infrastructure (STRL, Financial) is positioned well as it joins the S&P SmallCap 600 index, providing new visibility and potential for further institutional investment.
