Sterling InfrastructureSTRL -2.80%83 Gross Margin % is 23.53% as of Mar. 2026, which is 62% above its 10-year median of 14.52. GuruFocus rates STRL with a GF Score™ of 83/100 and a GF Value™ of $207.14 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,724 Construction companies, Sterling Infrastructure ranks better than 55.05% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sterling Infrastructure had a gross margin of 23.53% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sterling Infrastructure Gross Margin % Related Terms
Sterling Infrastructure Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Engineering & Construction subindustry, Sterling Infrastructure's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sterling Infrastructure Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Sterling Infrastructure's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sterling Infrastructure's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sterling Infrastructure (STRL) has a Gross Margin % of 23.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sterling Infrastructure and its competitors. This is 62% above median its historical median of 14.52. Over the past decade, Sterling Infrastructure's Gross Margin % has ranged from 6.09 to 23.29. According to the industry distribution chart, Sterling Infrastructure ranks #775 out of 1724 companies in the Construction industry, placing it in the top 45%.
Is Sterling Infrastructure's Gross Margin % too high?
Sterling Infrastructure's current Gross Margin % of 23.53% is 62% above median its 10-year median of 14.52. Over the past 10 years, this metric has ranged from a low of 6.09 to a high of 23.29. The Construction industry median Gross Margin % is 20.71. Sterling Infrastructure's value of 23.53% is 13.6% above this industry median. Based on the distribution chart, Sterling Infrastructure ranks #775 out of 1724 companies in the Construction industry, which is above the industry midpoint. Overall, Sterling Infrastructure has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sterling Infrastructure's Gross Margin % compare to MTZ and APG?
According to the Construction industry distribution chart, Sterling Infrastructure ranks #775 out of 1724 companies for Gross Margin %. This puts Sterling Infrastructure in the upper half of its industry. The industry median Gross Margin % is 20.71. Sterling Infrastructure's value of 23.53% is 13.6% above this benchmark. Historically, Sterling Infrastructure's own Gross Margin % has ranged from 6.09 to 23.29 over the past decade. While the company's 10-year median is 14.52 vs. the industry median of 20.71, Sterling Infrastructure has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sterling Infrastructure's current Gross Margin % of 23.53% is 13.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sterling Infrastructure and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Infrastructure's current Gross Margin % is 23.53%, which is 62% above median its own 10-year median of 14.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Infrastructure stock overvalued right now?
Based on GuruFocus' analysis, Sterling Infrastructure (STRL) is currently considered Significantly Overvalued. The stock's GF Value™ is $207.14, compared to a current price of $867.23 — trading 318.7% above its estimated fair value. The current Gross Margin % is 23.53%, which is 62% above median its 10-year median of 14.52 and 13.6% above the Construction industry median of 20.71. Sterling Infrastructure's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sterling Infrastructure (STRL), the current Gross Margin % is 23.53% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sterling Infrastructure (STRL) Overvalued in 2026?
Based on GuruFocus' analysis, Sterling Infrastructure stock appears to be overvalued.
The current stock price of $867.23 is trading 318.7% above its estimated GF Value™ of $207.14.
GuruFocus considers Sterling Infrastructure to be Significantly Overvalued.
Key valuation signals for STRL:
Gross Margin %: 23.53% (62% above median its 10-year median of 14.52)
GF Value™: $207.14 vs. price of $867.23 (318.7% above fair value)
Industry Position: 13.6% above the Construction median (#775 of 1724)
No single metric tells the full story. See the STRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterling Infrastructure Inc operates through subsidiaries within three segments: E-Infrastructure, Transportation, and Building Solutions in the United States, mainly across the Southern, Northeastern, Mid-Atlantic, and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions generates maximum revenue and provides site development and mission-critical electrical services for data centers, manufacturing, distribution centers, warehousing, and power generation. Transportation Solutions includes infrastructure and rehabilitation projects for highways, airports, ports, rail, and storm drainage systems. Building Solutions includes residential and commercial concrete foundations, parking structures, plumbing services, and surveys for new single-family residential builds.
83GF Score
Get the complete analysis for STRL
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STRL has been successfully added to your 
