Sterling InfrastructureSTRL -2.80%83 Operating Margin % is 17.16% as of Mar. 2026, which is 122% above its 10-year median of 7.74. 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 1,767 Construction companies, Sterling Infrastructure ranks better than 87.61% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Sterling Infrastructure Operating Margin % Related Terms
Sterling Infrastructure Operating Margin % Historical Data
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The historical data trend for Sterling Infrastructure's Operating Margin % can be seen below:
* 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.
STRL vs MTZ, APG, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Sterling Infrastructure's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Sterling Infrastructure's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sterling Infrastructure's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Sterling Infrastructure's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Sterling Infrastructure (STRL) has a Operating Margin % of 17.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sterling Infrastructure and its competitors. This is 122% above median its historical median of 7.74. According to the industry distribution chart, Sterling Infrastructure ranks #219 out of 1767 companies in the Construction industry, placing it in the top 12.4%.
Is Sterling Infrastructure's Operating Margin % too high?
Sterling Infrastructure's current Operating Margin % of 17.16% is 122% above median its 10-year median of 7.74. The Construction industry median Operating Margin % is 5.89. Sterling Infrastructure's value of 17.16% is 191.3% above this industry median. Based on the distribution chart, Sterling Infrastructure ranks #219 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to MTZ and APG?
According to the Construction industry distribution chart, Sterling Infrastructure ranks #219 out of 1767 companies for Operating Margin %. This places Sterling Infrastructure in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Sterling Infrastructure's value of 17.16% is 191.3% above this benchmark. While the company's 10-year median is 7.74 vs. the industry median of 5.89, 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 Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sterling Infrastructure's current Operating Margin % of 17.16% is 191.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Sterling Infrastructure and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Infrastructure's current Operating Margin % is 17.16%, which is 122% above median its own 10-year median of 7.74. 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 Operating Margin % is 17.16%, which is 122% above median its 10-year median of 7.74 and 191.3% above the Construction industry median of 5.89. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Sterling Infrastructure (STRL), the current Operating Margin % is 17.16% 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:
Operating Margin %: 17.16% (122% above median its 10-year median of 7.74)
GF Value™: $207.14 vs. price of $867.23 (318.7% above fair value)
Industry Position: 191.3% above the Construction median (#219 of 1767)
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
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