Sterling Infrastructure Inc. Common Stock (STRL)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with what the company actually filed. In fiscal Q2 2026, the quarter ended 2026-06-30, Sterling reported revenue of $1.2B, net income of $155.8M, and diluted EPS of $5.00. In fiscal Q2 2025, the quarter ended 2025-06-30, those were $614.5M, $71.0M, and $2.31. For FY2025, revenue was $2.5B, net income $290.2M, and diluted EPS $9.38; FY2023 was $2.0B, $138.7M, and $4.44. That is real growth, especially in e-infrastructure and data-center-related site work. The balance sheet looks sound: FairStock shows debt-to-equity of 0.24, an Altman Z-Score of 6.23, and a Piotroski F-Score of 8/9. TTM free cash flow is $482M, a 3.2% FCF yield, and ROE is 40.01%. But quality is not the same as price. At the 2026-10-13 close of $498.61, FairStock's P/E is 35.87, P/B is 11.24, EV/EBITDA is 21.33, and the Graham Number is $117.60, leaving a margin of safety of -323.99%. The PEG ratio of 0.30 and Lynch FAST GROWER category imply the market is paying up for growth. Construction remains competitive and cyclical; the moat is not obvious. I would call this a fine business, but not a Graham bargain.

In plain English: Sterling Infrastructure helps build sites for data centers, transportation, and other building projects. The business looks strong: in the quarter ended June 30, 2026, sales and profit rose sharply from a year earlier, and the company has little debt. But the stock price looks high compared with its accounting value and earnings power, so it is not an obvious bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer