Sterling Infrastructure, Inc. (STRL): one to watch?

Business is genuinely strong (90%+ revenue growth, huge backlog) but the crash is a valuation reset, not fraud — still risky at current multiple.

👀 WATCH Fundamentals83/100

Fell 22% in 10 trading day(s) — now $470.52

Why STRL dropped

The stock cratered after an otherwise excellent Q2 earnings report because guidance implied shrinking incremental profit margins from a dilutive acquisition (Stone Ridge), plus a broader sector-wide sell-off in AI/data-center-linked stocks as investors worry Big Tech capex could slow.

Fwd P/E 18.5Op margin 20.1%Rev growth 90.1%Debt/equity 24.2%Analyst upside 86.2%

How this scored 83/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 12.5%

✅ Generates cash Free cash flow $349M

✅ Not drowning in debt Debt/equity 24.2% (limit 200%)

✅ Can pay its bills Current ratio 1.1 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 20/25

Operating margin 20.1% 7/9

Net profit margin 12.5% 5/8

Return on equity 40.0% 8/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 90.1% 9/9

Earnings growth 116.5% 8/8

Expected profit change 83.0% 8/8

Value Is it cheap right now? 21/25

Forward P/E 18.5 7/10

PEG ratio 0.8 7/8

Analyst target upside 86.2% 7/7

Balance sheet Will it survive? 17/25

Debt / equity 24.2% 10/10

Current ratio 1.1 1/8

Free cash flow $349M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-31. Research only — not financial advice.