Recent News
On November 12, 2025 the Board authorized a new $400 million stock repurchase program effective immediately, replacing a prior plan and allowing repurchases over the next 24 months. On January 7, 2026 Sterling announced management participation in the Needham Growth Conference on January 13, 2026 to meet with investors.
Technical Analysis
ADX at 25.25 indicates strong trend strength underpinning current price action and supports a near-term directional bias toward higher levels.
DI+ at 24.73 shows an increasing trajectory and DI- at 14.66 shows a decreasing trajectory, a configuration that reads as a bullish directional setup reinforcing the price bias implied by ADX.
MACD at 11.71 sits above its signal line at 5.92 and shows an increasing momentum profile; the MACD crossing above the signal line constitutes a bullish momentum confirmation for the near term.
MRO at 8.76 registers positive, which indicates the market price sits above the model target and therefore introduces a likelihood of mean reversion or consolidation pressure despite current momentum.
RSI at 55.18 with an increasing series signals mild bullish momentum without overbought extremes, supporting potential for continued gains while leaving room for pullbacks.
Price trades well above major averages — close at $379.23 versus the 20-day average $346.99, 50-day average $328.07 and 200-day average $281.99 — and the 12-day EMA shows an increasing path, aligning short- and longer-term trend behavior to the upside.
Price sits above the Bollinger 1x upper band ($374.33) but below the 2x upper band ($401.68), indicating an extended intraday position that could attract both momentum continuation and volatility-driven retracements. The super trend lower support sits near $335.05, giving a defined technical support reference for near-term range assessments.
Fundamental Analysis
Revenue of $689.0M and gross profit of $170.2M underpin operating leverage that produced an operating margin of 19.158% and an EBIT margin of 19.011%. EBIT margin improved QoQ by 4.802% and rose YoY by 18.715%, showing margin expansion alongside revenue growth.
EPS reported $3.48 versus an estimate of $2.84, a positive surprise of $0.64 or a 22.535% beat; that earnings strength supports the improved margin profile and elevated profitability metrics.
Return on equity stands at 8.761% and return on assets at 3.899%, with return-on-capital-employed at 8.210%; return-on-assets increased QoQ by 15.219% and YoY by 26.797%, signaling improving capital efficiency versus recent periods.
Revenue growth displays mixed cadence: a quarter-over-quarter decline of -71.509% contrasted with a year-over-year increase of 547.784%; asset turnover sits at 0.29176 and ticked down slightly QoQ, implying sales per dollar of asset slipped marginally even as annual revenue scaled materially.
Leverage metrics show total debt $359.2M with debt-to-EBITDA at 2.38 and interest coverage around 31.64x, reflecting manageable interest burden and available capacity relative to operating earnings.
Market multiples appear rich versus peer central tendencies: P/E at 93.95 sits above the industry peer mean of 82.81, P/B at 9.55 exceeds the industry peer mean of 6.14, and P/S at 14.57 surpasses the industry peer mean of 6.50. Forward P/E at 182.15 and forward PEG near 4.71 further reflect elevated forward expectations.
Cash and liquidity present a mixed picture: cash and short-term investments total $306.4M while the current ratio slipped to 0.996, down QoQ by 29.945%, indicating near-term working capital tightness despite substantial cash balances. Free cash flow stands at $63.965M but free cash flow yield at 0.64% declined notably YoY and QoQ.
WMDST values the stock as over-valued. The valuation view weighs strong recent earnings and margin improvement against substantially higher multiples and a low free cash flow yield relative to absolute price levels.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-03 |
| NEXT REPORT DATE: | 2026-02-02 |
| CASH FLOW | Begin Period Cash Flow | $ 699.4 M |
| Operating Cash Flow | $ 83.6 M | |
| Capital Expenditures | $ -19.66 M | |
| Change In Working Capital | $ -41.95 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -392.98 M | |
| End Period Cash Flow | $ 306.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 689.0 M | |
| Forward Revenue | $ 171.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 518.8 M | |
| Depreciation | $ 13.9 M | |
| Depreciation and Amortization | $ 19.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 557.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 170.2 M | |
| EBITDA | $ 150.9 M | |
| EBIT | $ 131.0 M | |
| Operating Income | $ 132.0 M | |
| Interest Income | $ 5.7 M | |
| Interest Expense | $ 4.1 M | |
| Net Interest Income | $ 1.5 M | |
| Income Before Tax | $ 126.8 M | |
| Tax Provision | $ 30.5 M | |
| Tax Rate | 24.1 % | |
| Net Income | $ 92.1 M | |
| Net Income From Continuing Operations | $ 96.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.84 | |
| EPS Actual | $ 3.48 | |
| EPS Difference | $ 0.64 | |
| EPS Surprise | 22.535 % | |
| Forward EPS | $ 2.99 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.6 B | |
| Intangible Assets | $ 1.1 B | |
| Net Tangible Assets | $ -91.15 M | |
| Total Current Assets | $ 963.1 M | |
| Cash and Short-Term Investments | $ 306.4 M | |
| Cash | $ 306.4 M | |
| Net Receivables | $ 496.1 M | |
| Inventory | — | |
| Long-Term Investments | $ 16.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 198.3 M | |
| Short-Term Debt | $ 15.2 M | |
| Total Current Liabilities | $ 966.8 M | |
| Net Debt | — | |
| Total Debt | $ 359.2 M | |
| Total Liabilities | $ 1.5 B | |
| EQUITY | ||
| Total Equity | $ 1.1 B | |
| Retained Earnings | $ 785.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 34.23 | |
| Shares Outstanding | 30.708 M | |
| Revenue Per-Share | $ 22.44 | |
| VALUATION | Market Capitalization | $ 10.0 B |
| Enterprise Value | $ 10.1 B | |
| Enterprise Multiple | 66.884 | |
| Enterprise Multiple QoQ | 18.495 % | |
| Enterprise Multiple YoY | 103.412 % | |
| Enterprise Multiple IPRWA | high: 131.097 STRL: 66.884 median: 56.564 mean: 52.561 low: -45.941 |
|
| EV/R | 14.648 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.438 | |
| Asset To Liability | 1.734 | |
| Debt To Capital | 0.255 | |
| Debt To Assets | 0.14 | |
| Debt To Assets QoQ | -11.719 % | |
| Debt To Assets YoY | 973.43 % | |
| Debt To Assets IPRWA | high: 0.792 median: 0.244 mean: 0.229 STRL: 0.14 low: 0.002 |
|
| Debt To Equity | 0.342 | |
| Debt To Equity QoQ | -12.188 % | |
| Debt To Equity YoY | 826.6 % | |
| Debt To Equity IPRWA | high: 1.946 median: 0.744 mean: 0.687 STRL: 0.342 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 9.552 | |
| Price To Book QoQ | 10.201 % | |
| Price To Book YoY | 58.459 % | |
| Price To Book IPRWA | high: 11.745 STRL: 9.552 mean: 6.138 median: 5.222 low: -0.303 |
|
| Price To Earnings (P/E) | 93.951 | |
| Price To Earnings QoQ | 8.105 % | |
| Price To Earnings YoY | 31.528 % | |
| Price To Earnings IPRWA | high: 138.015 STRL: 93.951 median: 86.256 mean: 82.81 low: -31.573 |
|
| PE/G Ratio | 2.431 | |
| Price To Sales (P/S) | 14.571 | |
| Price To Sales QoQ | 17.156 % | |
| Price To Sales YoY | 100.312 % | |
| Price To Sales IPRWA | high: 24.589 STRL: 14.571 mean: 6.499 median: 5.826 low: 0.204 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 182.149 | |
| Forward PE/G | 4.713 | |
| Forward P/S | 111.508 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.443 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.292 | |
| Asset Turnover Ratio QoQ | -0.396 % | |
| Asset Turnover Ratio YoY | -2.012 % | |
| Asset Turnover Ratio IPRWA | high: 0.643 mean: 0.363 median: 0.342 STRL: 0.292 low: 0.019 |
|
| Receivables Turnover | 1.633 | |
| Receivables Turnover Ratio QoQ | -15.818 % | |
| Receivables Turnover Ratio YoY | -3.08 % | |
| Receivables Turnover Ratio IPRWA | high: 6.931 mean: 1.779 median: 1.665 STRL: 1.633 low: 0.72 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 55.869 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 21.255 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 249.747 median: 47.714 mean: 34.086 STRL: 21.255 low: -36.642 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -189.031 | |
| CapEx To Revenue | -0.029 | |
| CapEx To Depreciation | -1.417 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.3 B | |
| Net Invested Capital | $ 1.3 B | |
| Invested Capital | $ 1.3 B | |
| Net Tangible Assets | $ -91.15 M | |
| Net Working Capital | $ -3.65 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.317 | |
| Current Ratio | 0.996 | |
| Current Ratio QoQ | -29.945 % | |
| Current Ratio YoY | -22.865 % | |
| Current Ratio IPRWA | high: 3.71 mean: 1.641 median: 1.301 STRL: 0.996 low: 0.103 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.38 | |
| Cost Of Debt | 0.895 % | |
| Interest Coverage Ratio | 31.639 | |
| Interest Coverage Ratio QoQ | 41.782 % | |
| Interest Coverage Ratio YoY | 109.168 % | |
| Interest Coverage Ratio IPRWA | high: 48.808 STRL: 31.639 mean: 12.955 median: 7.704 low: -42.909 |
|
| Operating Cash Flow Ratio | 0.003 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 34.614 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 18.575 % | |
| Revenue Growth | 12.133 % | |
| Revenue Growth QoQ | -71.509 % | |
| Revenue Growth YoY | 547.784 % | |
| Revenue Growth IPRWA | high: 45.722 % STRL: 12.133 % mean: 5.674 % median: 4.053 % low: -30.219 % |
|
| Earnings Growth | 38.645 % | |
| Earnings Growth QoQ | -28.419 % | |
| Earnings Growth YoY | 115.125 % | |
| Earnings Growth IPRWA | high: 156.25 % STRL: 38.645 % mean: 19.765 % median: 12.5 % low: -96.429 % |
|
| MARGINS | ||
| Gross Margin | 24.704 % | |
| Gross Margin QoQ | 6.049 % | |
| Gross Margin YoY | 13.005 % | |
| Gross Margin IPRWA | high: 49.439 % STRL: 24.704 % median: 22.315 % mean: 21.302 % low: -13.331 % |
|
| EBIT Margin | 19.011 % | |
| EBIT Margin QoQ | 4.802 % | |
| EBIT Margin YoY | 18.715 % | |
| EBIT Margin IPRWA | high: 27.2 % STRL: 19.011 % mean: 10.104 % median: 9.891 % low: -14.014 % |
|
| Return On Sales (ROS) | 19.158 % | |
| Return On Sales QoQ | 8.593 % | |
| Return On Sales YoY | 19.633 % | |
| Return On Sales IPRWA | high: 24.385 % STRL: 19.158 % median: 9.968 % mean: 9.825 % low: -14.192 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 64.0 M | |
| Free Cash Flow Yield | 0.637 % | |
| Free Cash Flow Yield QoQ | -32.45 % | |
| Free Cash Flow Yield YoY | -80.1 % | |
| Free Cash Flow Yield IPRWA | high: 16.122 % median: 1.771 % mean: 1.702 % STRL: 0.637 % low: -15.175 % |
|
| Free Cash Growth | -11.271 % | |
| Free Cash Growth QoQ | -247.083 % | |
| Free Cash Growth YoY | -122.476 % | |
| Free Cash Growth IPRWA | high: 583.204 % mean: 53.634 % median: 30.667 % STRL: -11.271 % low: -490.961 % |
|
| Free Cash To Net Income | 0.695 | |
| Cash Flow Margin | 0.387 % | |
| Cash Flow To Earnings | 0.029 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.899 % | |
| Return On Assets QoQ | 15.219 % | |
| Return On Assets YoY | 26.797 % | |
| Return On Assets IPRWA | high: 6.641 % STRL: 3.899 % mean: 2.366 % median: 2.06 % low: -12.201 % |
|
| Return On Capital Employed (ROCE) | 8.21 % | |
| Return On Equity (ROE) | 0.088 | |
| Return On Equity QoQ | 8.819 % | |
| Return On Equity YoY | 2.372 % | |
| Return On Equity IPRWA | high: 0.131 STRL: 0.088 median: 0.062 mean: 0.061 low: -0.333 |
|
| DuPont ROE | 9.528 % | |
| Return On Invested Capital (ROIC) | 7.388 % | |
| Return On Invested Capital QoQ | 5.257 % | |
| Return On Invested Capital YoY | -165.636 % | |
| Return On Invested Capital IPRWA | high: 11.248 % STRL: 7.388 % mean: 4.226 % median: 3.681 % low: -6.036 % |
|