Sterling Construction Net Income vs. Price To Sales
| STRL Stock | USD 196.51 0.90 0.46% |
Net Income | First Reported 1995-09-30 | Previous Quarter 51.9 M | Current Value 61.3 M | Quarterly Volatility 13.6 M |
For Sterling Construction profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sterling Construction to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sterling Construction utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sterling Construction's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sterling Construction over time as well as its relative position and ranking within its peers.
Sterling |
Sterling Construction's Revenue Breakdown by Earning Segment
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Is Construction & Engineering space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sterling Construction. If investors know Sterling will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sterling Construction listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.563 | Earnings Share 5.9 | Revenue Per Share 68.14 | Quarterly Revenue Growth 0.06 | Return On Assets 0.0863 |
The market value of Sterling Construction is measured differently than its book value, which is the value of Sterling that is recorded on the company's balance sheet. Investors also form their own opinion of Sterling Construction's value that differs from its market value or its book value, called intrinsic value, which is Sterling Construction's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sterling Construction's market value can be influenced by many factors that don't directly affect Sterling Construction's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sterling Construction's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sterling Construction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sterling Construction's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Sterling Construction Price To Sales vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sterling Construction's current stock value. Our valuation model uses many indicators to compare Sterling Construction value to that of its competitors to determine the firm's financial worth. Sterling Construction is rated below average in net income category among its peers. It is rated third in price to sales category among its peers . The ratio of Net Income to Price To Sales for Sterling Construction is about 48,310,163 . At this time, Sterling Construction's Net Income is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Sterling Construction by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Sterling Price To Sales vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Sterling Construction |
| = | 138.66 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Sterling Construction |
| = | 2.87 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Sterling Price To Sales Comparison
Sterling Construction is currently under evaluation in price to sales category among its peers.
Sterling Construction Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sterling Construction, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sterling Construction will eventually generate negative long term returns. The profitability progress is the general direction of Sterling Construction's change in net profit over the period of time. It can combine multiple indicators of Sterling Construction, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 205.8 M | 216.1 M | |
| Income Before Tax | 190.6 M | 200.1 M | |
| Total Other Income Expense Net | -15.2 M | -14.4 M | |
| Net Income | 138.7 M | 145.6 M | |
| Income Tax Expense | 47.8 M | 50.2 M | |
| Net Income Applicable To Common Shares | 122.4 M | 128.6 M | |
| Net Income From Continuing Ops | 142.8 M | 150 M | |
| Non Operating Income Net Other | 1.9 M | 2 M | |
| Interest Income | 14.1 M | 14.8 M | |
| Net Interest Income | -15.2 M | -15.9 M | |
| Change To Netincome | 33.4 M | 35 M | |
| Net Income Per Share | 4.51 | 4.73 | |
| Income Quality | 3.45 | 3.62 | |
| Net Income Per E B T | 0.73 | 1.09 |
Sterling Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sterling Construction. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sterling Construction position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sterling Construction's important profitability drivers and their relationship over time.
Use Sterling Construction in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sterling Construction position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sterling Construction will appreciate offsetting losses from the drop in the long position's value.Sterling Construction Pair Trading
Sterling Construction Pair Trading Analysis
The ability to find closely correlated positions to Sterling Construction could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sterling Construction when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sterling Construction - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sterling Construction to buy it.
The correlation of Sterling Construction is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sterling Construction moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sterling Construction moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sterling Construction can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Sterling Construction position
In addition to having Sterling Construction in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Sterling Construction's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sterling Construction at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sterling Construction's income statement, its balance sheet, and the statement of cash flows.