Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Sterling Infrastructure's 3-Year RORE % for the quarter that ended in Mar. 2026 was 25.95%.
The industry rank for Sterling Infrastructure's 3-Year RORE % or its related term are showing as below:
STRL's 3-Year RORE % is ranked better than 66.85% of 1632
companies
in the Construction industry
Industry Median: 6.245
vs STRL: 25.95
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Sterling Infrastructure 3-Year RORE % Related Terms
Sterling Infrastructure 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Construction Industry
For the Construction industry and Industrials sector, Sterling Infrastructure's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sterling Infrastructure's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Sterling Infrastructure (STRL) has a 3-Year RORE % of 25.95 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Sterling Infrastructure and its competitors. According to the industry distribution chart, Sterling Infrastructure ranks #541 out of 1632 companies in the Construction industry, placing it in the top 33.1%.
Is Sterling Infrastructure's 3-Year RORE % too high?
Sterling Infrastructure's current 3-Year RORE % is 25.95. The Construction industry median 3-Year RORE % is 6.25. Sterling Infrastructure's value of 25.95 is 315.5% above this industry median. Based on the distribution chart, Sterling Infrastructure ranks #541 out of 1632 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 3-Year RORE % compare to MTZ and APG?
According to the Construction industry distribution chart, Sterling Infrastructure ranks #541 out of 1632 companies for 3-Year RORE %. This puts Sterling Infrastructure in the upper half of its industry. The industry median 3-Year RORE % is 6.25. Sterling Infrastructure's value of 25.95 is 315.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Construction company?
The median 3-Year RORE % among Construction companies is 6.25, based on 1,632 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sterling Infrastructure's current 3-Year RORE % of 25.95 is 315.5% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Sterling Infrastructure and its competitors. For the Construction industry, the median 3-Year RORE % is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Infrastructure's current 3-Year RORE % is 25.95. 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 3-Year RORE % is 25.95 and 315.5% above the Construction industry median of 6.25. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Sterling Infrastructure (STRL), the current 3-Year RORE % is 25.95 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:
3-Year RORE %: 25.95
GF Value™: $207.35 vs. price of $813.77 (292.5% above fair value)
Industry Position: 315.5% above the Construction median (#541 of 1632)
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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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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