STRATTEC SECURITY CORP (STRT) Stock Fundamental Analysis
NASDAQ:STRT - Nasdaq - US8631111007 - Common Stock - Currency: USD
Taking everything into account, STRT scores 5 out of 10 in our fundamental rating. STRT was compared to 81 industry peers in the Automobile Components industry. No worries on liquidiy or solvency for STRT as it has an excellent financial health rating, but there are worries on the profitability. STRT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year STRT was profitable.
STRT had a positive operating cash flow in the past year.
In multiple years STRT reported negative net income over the last 5 years.
Each year in the past 5 years STRT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.17%, STRT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
With a Return On Equity value of 9.51%, STRT is not doing good in the industry: 61.73% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 7.38%, STRT is doing worse than 64.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 9.51% | ||
| ROIC | 7.38% |
ROA(3y)1.57%
ROA(5y)1.82%
ROE(3y)2.74%
ROE(5y)3.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
STRT has a worse Profit Margin (3.60%) than 61.73% of its industry peers.
In the last couple of years the Profit Margin of STRT has declined.
STRT has a worse Operating Margin (4.31%) than 71.60% of its industry peers.
In the last couple of years the Operating Margin of STRT has grown nicely.
Looking at the Gross Margin, with a value of 13.98%, STRT is doing worse than 80.25% of the companies in the same industry.
In the last couple of years the Gross Margin of STRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.31% | ||
| PM (TTM) | 3.6% | ||
| GM | 13.98% |
OM growth 3Y-22.02%
OM growth 5Y8.76%
PM growth 3Y-13.19%
PM growth 5YN/A
GM growth 3Y-9.12%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STRT is destroying value.
Compared to 1 year ago, STRT has more shares outstanding
The number of shares outstanding for STRT has been increased compared to 5 years ago.
Compared to 1 year ago, STRT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.83 indicates that STRT is not in any danger for bankruptcy at the moment.
STRT's Altman-Z score of 3.83 is fine compared to the rest of the industry. STRT outperforms 79.01% of its industry peers.
The Debt to FCF ratio of STRT is 0.24, which is an excellent value as it means it would take STRT, only 0.24 years of fcf income to pay off all of its debts.
STRT has a Debt to FCF ratio of 0.24. This is amongst the best in the industry. STRT outperforms 96.30% of its industry peers.
STRT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, STRT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 3.83 |
ROIC/WACC0.78
WACC9.42%
2.3 Liquidity
STRT has a Current Ratio of 2.33. This indicates that STRT is financially healthy and has no problem in meeting its short term obligations.
STRT has a Current ratio of 2.33. This is in the better half of the industry: STRT outperforms 79.01% of its industry peers.
STRT has a Quick Ratio of 1.64. This is a normal value and indicates that STRT is financially healthy and should not expect problems in meeting its short term obligations.
STRT has a better Quick ratio (1.64) than 87.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
STRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 400.00%, which is quite impressive.
Measured over the past years, STRT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.09% on average per year.
Looking at the last year, STRT shows a small growth in Revenue. The Revenue has grown by 5.54% in the last year.
Measured over the past years, STRT shows a small growth in Revenue. The Revenue has been growing by 2.00% on average per year.
EPS 1Y (TTM)400%
EPS 3Y-12.09%
EPS 5YN/A
EPS Q2Q%256.76%
Revenue 1Y (TTM)5.54%
Revenue growth 3Y3.48%
Revenue growth 5Y2%
Sales Q2Q%2.35%
3.2 Future
The Earnings Per Share is expected to grow by 9.58% on average over the next years. This is quite good.
STRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.35% yearly.
EPS Next Y-22.31%
EPS Next 2Y9.11%
EPS Next 3Y9.58%
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y3.5%
Revenue Next 3Y4.35%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.31, which indicates a very decent valuation of STRT.
STRT's Price/Earnings ratio is a bit cheaper when compared to the industry. STRT is cheaper than 61.73% of the companies in the same industry.
STRT is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
STRT is valuated reasonably with a Price/Forward Earnings ratio of 11.55.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STRT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.15. STRT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRT is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STRT indicates a rather cheap valuation: STRT is cheaper than 95.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.26 | ||
| EV/EBITDA | 4.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.11%
EPS Next 3Y9.58%
5. Dividend
5.1 Amount
No dividends for STRT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.98
+1.99 (+3.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners69.35%
Inst Owner Change3.44%
Ins Owners3.99%
Ins Owner Change-0.91%
Market Cap226.16M
Analysts43.33
Price Target51 (-8.9%)
Short Float %0.84%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.13%
Min EPS beat(2)12.04%
Max EPS beat(2)36.22%
EPS beat(4)4
Avg EPS beat(4)156.49%
Min EPS beat(4)12.04%
Max EPS beat(4)516.62%
EPS beat(8)7
Avg EPS beat(8)174.51%
EPS beat(12)7
Avg EPS beat(12)4.38%
EPS beat(16)8
Avg EPS beat(16)-1.38%
Revenue beat(2)2
Avg Revenue beat(2)1.03%
Min Revenue beat(2)0.3%
Max Revenue beat(2)1.76%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)1.76%
Revenue beat(8)6
Avg Revenue beat(8)2.51%
Revenue beat(12)8
Avg Revenue beat(12)1.21%
Revenue beat(16)8
Avg Revenue beat(16)-0.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.55 | ||
| P/S | 0.41 | ||
| P/FCF | 4.26 | ||
| P/OCF | 3.71 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 4.37 |
EPS(TTM)4.95
EY8.84%
EPS(NY)4.85
Fwd EY8.65%
FCF(TTM)13.15
FCFY23.48%
OCF(TTM)15.1
OCFY26.97%
SpS137.65
BVpS52.15
TBVpS52.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 9.51% | ||
| ROCE | 9.08% | ||
| ROIC | 7.38% | ||
| ROICexc | 9.65% | ||
| ROICexgc | 9.65% | ||
| OM | 4.31% | ||
| PM (TTM) | 3.6% | ||
| GM | 13.98% | ||
| FCFM | 9.55% |
ROA(3y)1.57%
ROA(5y)1.82%
ROE(3y)2.74%
ROE(5y)3.12%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-19.56%
ROICexcg growth 5Y11.44%
ROICexc growth 3Y-19.56%
ROICexc growth 5Y11.44%
OM growth 3Y-22.02%
OM growth 5Y8.76%
PM growth 3Y-13.19%
PM growth 5YN/A
GM growth 3Y-9.12%
GM growth 5Y0.51%
F-Score6
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 53.53% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 24.97 | ||
| Cash Conversion | 157.6% | ||
| Profit Quality | 265.03% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 3.83 |
F-Score6
WACC9.42%
ROIC/WACC0.78
Cap/Depr(3y)77.23%
Cap/Depr(5y)68.17%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)400%
EPS 3Y-12.09%
EPS 5YN/A
EPS Q2Q%256.76%
EPS Next Y-22.31%
EPS Next 2Y9.11%
EPS Next 3Y9.58%
EPS Next 5YN/A
Revenue 1Y (TTM)5.54%
Revenue growth 3Y3.48%
Revenue growth 5Y2%
Sales Q2Q%2.35%
Revenue Next Year5.68%
Revenue Next 2Y3.5%
Revenue Next 3Y4.35%
Revenue Next 5YN/A
EBIT growth 1Y154.57%
EBIT growth 3Y-19.3%
EBIT growth 5Y10.94%
EBIT Next Year219.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y530.71%
FCF growth 3Y-54.46%
FCF growth 5Y-27.64%
OCF growth 1Y888.48%
OCF growth 3Y-29.6%
OCF growth 5Y-16.35%