Is STRL a high-quality business?

AlphaMadera's AlphaQuality grade scores Sterling Infrastructure, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how STRL compares to a Buffett-style quality bar.

What is Sterling Infrastructure, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to STRL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes STRL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

STRL - Sterling Infrastructure, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $574.50 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B+ 78.0 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

A- 82.6

5yr Avg ROIC 13.5% 75/100
Operating Margin Trend +2.16 pp/yr 100/100

Capital Efficiency

Weight: 15%

B- 66.0

5yr Avg ROE 15.4% 81/100
5yr Share-Count CAGR 1.5% 38/100

Growth Quality

Weight: 10%

A+ 95.9

5yr Revenue CAGR 15.2% 91/100
5yr EPS CAGR 44.5% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A- 82.0

5yr FCF Margin 14.4% 81/100
5yr FCF/NI Conversion 1.83x 84/100

Balance Sheet

Weight: 25%

A+ 97.9

Net Debt / EBITDA -0.08x 95/100
Interest Coverage (EBIT/Int) 21.64x 100/100
Altman Z-Score 10.67 100/100

Stability

Weight: 20%

C- 46.6

EPS Volatility (σ/μ) 0.91 4/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 0/5 100/100

4 of 5 gurus held; 1 added; 3 trimmed; 1 full exit.

Holders: 4 -1
Avg Δ position: +5.5%
New buys: 0
Full exits: 1

Laffont sold -100%
Greenblatt increased +150%
Wood decreased -87%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.