Stock fact sheet · data as of
Sterling Infrastructure, Inc. (STRL): fair value, margin of safety and Wheel Score
Industrials · Engineering & Construction · United States · High Growth
Is STRL undervalued?
STRL closed at 453.07 on 16 Oct 2026 against a GLS average fair value of 439.81 - 3.0% above fair value, which our screens read as "fairly priced". 3 of 8 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
There is a wide gap between Graham Number (118.28) and GLS Growth (860.74). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files STRL under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for STRL
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 231.40 | -49% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 118.28 | -74% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 773.71 | +71% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 335.89 | -26% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 860.74 | +90% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 422.12 | -7% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 620.11 | +37% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 156.22 | -66% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -16.12 | -104% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 733.00 | +62% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Sterling Infrastructure, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability STRL scores 6.8/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 19.9%, ROE 26.2%, ROA 11.0% - with debt at 0.32 times equity and a free-cash-flow yield of 3.5%.
Sterling Infrastructure, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from E Infrastructure Solutions 78%, Transportation Solutions 13%, Building Solutions 9% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 19.9% |
|---|---|---|---|
| GLS Moat | 6.8 / 10 | ROE | 26.2% |
| Debt / equity | 0.32 | ROA | 11.0% |
| Free-cash-flow yield | 3.5% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 67: Good
With a Wheel Score of 67 - the Good band - Sterling Infrastructure, Inc. falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 11/25, Health 16/20, Moat 10/15, Premium 15/20, Stability 15/20; Value (11/25) scores lowest.
Implied volatility is 80% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. Chain open interest is 14,820 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 729k shares a day on a market cap of $13.9B, with a beta of 1.86 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 15 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 11 / 25 | -3% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 10 / 15 | moat 6.8/10 | |
| Premium | 15 / 20 | implied volatility 80% | |
| Stability | 15 / 20 | 729k shares/day, $13.9B cap, beta 1.86 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (after the close), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Engineering & Construction
The 12 companies below are the closest to Sterling Infrastructure, Inc. by market cap within the Engineering & Construction industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MTZ MasTec, Inc. | 191.63 | 172.57 | -11% | 68Good | $15.4B |
| J Jacobs Solutions Inc. | 141.97 | 66.43 | -114% | 57Fair | $16.6B |
| APG APi Group Corporation | 40.33 | 28.77 | -40% | 61Fair | $17.4B |
| IESC IES Holdings, Inc. | 262.44 | 218.37 | -20% | 62Fair | $10.6B |
| TTEK Tetra Tech, Inc. | 33.61 | 28.92 | -16% | 76Good | $8.6B |
| DY Dycom Industries, Inc. | 257.78 | 361.57 | +29% | 81Prime | $7.8B |
| ACM Aecom | 59.09 | 51.70 | -14% | 64Fair | $7.6B |
| STN Stantec Inc. | 67.11 | 98.56 | +32% | 86Prime | $7.5B |
| FLR Fluor Corporation | 47.67 | 8.01 | -495% | 45Weak | $6.4B |
| LGN Legence Corp. Class A Common stock | 45.30 | 49.16 | +8% | 45Weak | $6.3B |
| EME EMCOR Group, Inc. | 732.53 | 697.72 | -5% | 74Good | $32.3B |
| ECG Everus Construction Group, Inc. | 111.66 | 117.18 | +5% | 69Good | $5.7B |
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Start free See the Sunday ScanQuestions about STRL
Is STRL undervalued right now?
Not meaningfully: at 453.07 the stock trades within a few percent of the GLS average fair value of 439.81 (3.0% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of STRL and what does it mean?
STRL scores 67 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for STRL?
439.81 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Sterling Infrastructure, Inc. report earnings next?
The next earnings report is due on 2 Nov 2026 (after the close), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does STRL have listed options, and how liquid are they?
Yes. The nightly snapshot found 808 listed contracts with 14,820 open interest across all expiries and implied volatility of 80% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.