STRATTEC SECURITY CORP (STRT)
US8631111007 - Common Stock
Overall STRT gets a fundamental rating of 4 out of 10. We evaluated STRT against 43 industry peers in the Automobile Components industry. The financial health of STRT is average, but there are quite some concerns on its 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.
In the past year STRT has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: STRT reported negative net income in multiple years.
STRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.16%, STRT is in line with its industry, outperforming 50.00% of the companies in the same industry.
STRT's Return On Equity of 2.08% is in line compared to the rest of the industry. STRT outperforms 50.00% of its industry peers.
STRT has a Return On Invested Capital of 3.27%. This is in the lower half of the industry: STRT underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.08% | ||
| ROIC | 3.27% |
ROA(3y)2.49%
ROA(5y)-0.17%
ROE(3y)4.16%
ROE(5y)-0.58%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
STRT has a Profit Margin of 0.76%. This is comparable to the rest of the industry: STRT outperforms 50.00% of its industry peers.
With a Operating Margin value of 1.79%, STRT is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
STRT has a worse Gross Margin (11.23%) than 71.43% of its industry peers.
In the last couple of years the Gross Margin of STRT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.79% | ||
| PM (TTM) | 0.76% | ||
| GM | 11.23% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.33%
GM growth 5Y-7.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STRT is destroying value.
Compared to 1 year ago, STRT has about the same amount of shares outstanding.
Compared to 5 years ago, STRT has more shares outstanding
STRT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.36 indicates that STRT is not in any danger for bankruptcy at the moment.
STRT's Altman-Z score of 3.36 is fine compared to the rest of the industry. STRT outperforms 78.57% of its industry peers.
There is no outstanding debt for STRT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.36 |
ROIC/WACC0.29
WACC11.12%
2.3 Liquidity
A Current Ratio of 1.99 indicates that STRT should not have too much problems paying its short term obligations.
STRT has a Current ratio (1.99) which is in line with its industry peers.
STRT has a Quick Ratio of 1.13. This is a normal value and indicates that STRT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.13, STRT perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
STRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 208.79%, which is quite impressive.
The Revenue has grown by 8.89% in the past year. This is quite good.
The Revenue has been growing slightly by 2.33% on average over the past years.
EPS 1Y (TTM)208.79%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q164.91%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y8.56%
Revenue growth 5Y2.33%
Revenue growth Q2Q10.67%
3.2 Future
STRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 69.23% yearly.
Based on estimates for the next years, STRT will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
EPS Next Y191.2%
EPS Next 2Y69.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.82%
Revenue Next 2Y3.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.91, which indicates a rather expensive current valuation of STRT.
Compared to the rest of the industry, the Price/Earnings ratio of STRT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.32, STRT is valued at the same level.
With a Price/Forward Earnings ratio of 16.12, STRT is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as STRT.
The average S&P500 Price/Forward Earnings ratio is at 20.24. STRT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 16.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRT is valued cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.82 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STRT's earnings are expected to grow with 69.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y69.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STRT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STRATTEC SECURITY CORP
NASDAQ:STRT (5/14/2024, 3:00:00 PM)
23.67
-0.37 (-1.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap96.34M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 16.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.79% | ||
| PM (TTM) | 0.76% | ||
| GM | 11.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)208.79%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y191.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.89%
Revenue growth 3Y8.56%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y