Sterling InfrastructureSTRL +1.12%83 Return-on-Tangible-Equity is 3,032.32% as of Mar. 2026, which is 2792% above its 10-year median of 104.87. GuruFocus rates STRL with a GF Score™ of 83/100 and a GF Value™ of $207.35 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,705 Construction companies, Sterling Infrastructure ranks better than 93.78% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sterling Infrastructure's annualized net income for the quarter that ended in Mar. 2026 was $384 Mil. Sterling Infrastructure's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $13 Mil. Therefore, Sterling Infrastructure's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3,032.32%.
The historical rank and industry rank for Sterling Infrastructure's Return-on-Tangible-Equity or its related term are showing as below:
STRL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -19.73 Med: 104.87 Max: 443.11
Current: 443.11
During the past 13 years, Sterling Infrastructure's highest Return-on-Tangible-Equity was 443.11%. The lowest was -19.73%. And the median was 104.87%.
STRL's Return-on-Tangible-Equity is ranked better than 93.78% of 1705
companies
in the Construction industry
Industry Median: 8.25
vs STRL: 443.11
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sterling Infrastructure Return-on-Tangible-Equity Related Terms
Sterling Infrastructure Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sterling Infrastructure's Return-on-Tangible-Equity 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, J: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Sterling Infrastructure's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Sterling Infrastructure's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sterling Infrastructure's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3,032.32% mean?
Sterling Infrastructure (STRL) has a Return-on-Tangible-Equity of 3,032.32% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sterling Infrastructure and its competitors. This is 2792% above median its historical median of 104.87. According to the industry distribution chart, Sterling Infrastructure ranks #106 out of 1705 companies in the Construction industry, placing it in the top 6.2%.
Is Sterling Infrastructure's Return-on-Tangible-Equity too high?
Sterling Infrastructure's current Return-on-Tangible-Equity of 3,032.32% is 2792% above median its 10-year median of 104.87. The Construction industry median Return-on-Tangible-Equity is 8.25. Sterling Infrastructure's value of 3,032.32% is 36655.4% above this industry median. Based on the distribution chart, Sterling Infrastructure ranks #106 out of 1705 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 Return-on-Tangible-Equity compare to MTZ and APG?
According to the Construction industry distribution chart, Sterling Infrastructure ranks #106 out of 1705 companies for Return-on-Tangible-Equity. This places Sterling Infrastructure in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. Sterling Infrastructure's value of 3,032.32% is 36655.4% above this benchmark. While the company's 10-year median is 104.87 vs. the industry median of 8.25, 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 Return-on-Tangible-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sterling Infrastructure's current Return-on-Tangible-Equity of 3,032.32% is 36655.4% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sterling Infrastructure and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Infrastructure's current Return-on-Tangible-Equity is 3,032.32%, which is 2792% above median its own 10-year median of 104.87. 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 $207.35, compared to a current price of $813.77 — trading 292.5% above its estimated fair value. The current Return-on-Tangible-Equity is 3,032.32%, which is 2792% above median its 10-year median of 104.87 and 36655.4% above the Construction industry median of 8.25. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sterling Infrastructure (STRL), the current Return-on-Tangible-Equity is 3,032.32% 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 $813.77 is trading 292.5% above its estimated GF Value™ of $207.35.
GuruFocus considers Sterling Infrastructure to be Significantly Overvalued.
Key valuation signals for STRL:
Return-on-Tangible-Equity: 3,032.32% (2792% above median its 10-year median of 104.87)
GF Value™: $207.35 vs. price of $813.77 (292.5% above fair value)
Industry Position: 36655.4% above the Construction median (#106 of 1705)
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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