Sterling InfrastructureSTRL -2.80%83 ROA % is 14.17% as of Mar. 2026, which is 149% above its 10-year median of 5.68. 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 1,782 Construction companies, Sterling Infrastructure ranks better than 94.84% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sterling Infrastructure's annualizedNet Income for the quarter that ended in Mar. 2026 was $384 Mil.
Sterling Infrastructure's average Total Assets over the quarter that ended in Mar. 2026 was $2,709 Mil. Therefore, Sterling Infrastructure's annualized ROA % for the quarter that ended in Mar. 2026 was 14.17%.
The historical rank and industry rank for Sterling Infrastructure's ROA % or its related term are showing as below:
STRL'
s ROA % Range Over the Past 10 Years
Min: -3.25 Med: 5.68 Max: 14.24
Current: 14.24
During the past 13 years, Sterling Infrastructure's highest ROA % was 14.24%. The lowest was -3.25%. And the median was 5.68%.
STRL's ROA % is ranked better than 94.84% of 1782
companies
in the Construction industry
Industry Median: 2.79
vs STRL: 14.24
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Construction Industry
For the Construction industry and Industrials sector, Sterling Infrastructure's ROA % distribution charts can be found below:
* The bar in red indicates where Sterling Infrastructure's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Sterling Infrastructure (STRL) has a ROA % of 14.17% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Sterling Infrastructure and its competitors. This is 149% above median its historical median of 5.68. According to the industry distribution chart, Sterling Infrastructure ranks #92 out of 1782 companies in the Construction industry, placing it in the top 5.2%.
Is Sterling Infrastructure's ROA % too high?
Sterling Infrastructure's current ROA % of 14.17% is 149% above median its 10-year median of 5.68. The Construction industry median ROA % is 2.79. Sterling Infrastructure's value of 14.17% is 407.9% above this industry median. Based on the distribution chart, Sterling Infrastructure ranks #92 out of 1782 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 ROA % compare to MTZ and APG?
According to the Construction industry distribution chart, Sterling Infrastructure ranks #92 out of 1782 companies for ROA %. This places Sterling Infrastructure in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.79. Sterling Infrastructure's value of 14.17% is 407.9% above this benchmark. While the company's 10-year median is 5.68 vs. the industry median of 2.79, 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 ROA % for a Construction company?
The median ROA % among Construction companies is 2.79, based on 1,782 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sterling Infrastructure's current ROA % of 14.17% is 407.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Sterling Infrastructure and its competitors. For the Construction industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Infrastructure's current ROA % is 14.17%, which is 149% above median its own 10-year median of 5.68. 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 ROA % is 14.17%, which is 149% above median its 10-year median of 5.68 and 407.9% above the Construction industry median of 2.79. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Sterling Infrastructure (STRL), the current ROA % is 14.17% 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:
ROA %: 14.17% (149% above median its 10-year median of 5.68)
GF Value™: $207.14 vs. price of $867.23 (318.7% above fair value)
Industry Position: 407.9% above the Construction median (#92 of 1782)
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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