STRATTEC SECURITY CORP (STRT) Stock Fundamental Analysis
NASDAQ:STRT - Nasdaq - US8631111007 - Common Stock - Currency: USD
STRT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Automobile Components industry. While STRT has a great health rating, there are worries on its profitability. STRT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
STRT had positive earnings in the past year.
In the past year STRT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: STRT reported negative net income in multiple years.
Each year in the past 5 years STRT had a positive operating cash flow.
1.2 Ratios
STRT has a better Return On Assets (5.17%) than 88.75% of its industry peers.
STRT has a worse Return On Equity (9.51%) than 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.38%, STRT is doing worse than 65.00% 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 Profit Margin of 3.60%. This is in the lower half of the industry: STRT underperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of STRT has declined.
The Operating Margin of STRT (4.31%) is worse than 72.50% of its industry peers.
STRT's Operating Margin has improved in the last couple of years.
STRT has a Gross Margin of 13.98%. This is amonst the worse of the industry: STRT underperforms 81.25% of its industry peers.
STRT's Gross Margin has been stable in the last couple of years.
| 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
STRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for STRT has been increased compared to 1 year ago.
The number of shares outstanding for STRT has been increased compared to 5 years ago.
STRT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.00 indicates that STRT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.00, STRT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
STRT has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
STRT's Debt to FCF ratio of 0.24 is amongst the best of the industry. STRT outperforms 96.25% 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 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 4 |
ROIC/WACC0.76
WACC9.67%
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.
With a decent Current ratio value of 2.33, STRT is doing good in the industry, outperforming 78.75% of the companies in the same industry.
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.
The Quick ratio of STRT (1.64) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 400.00% over the past year.
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.
STRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.00% yearly.
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.
Based on estimates for the next years, STRT will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y-4.27%
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 5Y6.55%
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
A Price/Earnings ratio of 13.09 indicates a correct valuation of STRT.
STRT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of STRT to the average of the S&P500 Index (27.69), we can say STRT is valued rather cheaply.
The Price/Forward Earnings ratio is 13.38, which indicates a correct valuation of STRT.
The rest of the industry has a similar Price/Forward Earnings ratio as STRT.
When comparing the Price/Forward Earnings ratio of STRT to the average of the S&P500 Index (37.36), we can say STRT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRT is valued a bit cheaper than 63.75% 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 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 5.66 |
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 |
NASDAQ:STRT (7/24/2025, 11:09:50 AM)
64.81
-1.54 (-2.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners75.53%
Inst Owner Change0.38%
Ins Owners3.3%
Ins Owner Change-2.48%
Market Cap261.83M
Analysts43.33
Price Target64.26 (-0.85%)
Short Float %3.86%
Short Ratio1.8
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)26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.58%
EPS NY rev (1m)0%
EPS NY rev (3m)23.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 13.38 | ||
| P/S | 0.47 | ||
| P/FCF | 4.93 | ||
| P/OCF | 4.29 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 5.66 |
EPS(TTM)4.95
EY7.64%
EPS(NY)4.85
Fwd EY7.48%
FCF(TTM)13.15
FCFY20.28%
OCF(TTM)15.1
OCFY23.29%
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 | 4 |
F-Score6
WACC9.67%
ROIC/WACC0.76
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-4.27%
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 5Y6.55%
EBIT growth 1Y154.57%
EBIT growth 3Y-19.3%
EBIT growth 5Y10.94%
EBIT Next Year219.87%
EBIT Next 3YN/A
EBIT Next 5Y35.49%
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%