STRATTEC SECURITY CORP (STRT) Stock Fundamental Analysis
NASDAQ:STRT - Nasdaq - US8631111007 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to STRT. STRT was compared to 80 industry peers in the Automobile Components industry. While STRT has a great health rating, there are worries 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 had a positive cash flow from operations.
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
STRT's Return On Assets of 5.17% is amongst the best of the industry. STRT outperforms 88.75% of its industry peers.
With a Return On Equity value of 9.51%, STRT is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
The Return On Invested Capital of STRT (7.38%) is worse than 65.00% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 3.60%, STRT is doing worse than 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of STRT has declined.
Looking at the Operating Margin, with a value of 4.31%, STRT is doing worse than 72.50% of the companies in the same industry.
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 81.25% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STRT is destroying value.
STRT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, STRT has more shares outstanding
The debt/assets ratio for STRT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.93 indicates that STRT is not in any danger for bankruptcy at the moment.
STRT's Altman-Z score of 3.93 is fine compared to the rest of the industry. STRT outperforms 78.75% 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 96.25% 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.
STRT's Debt to Equity ratio of 0.06 is amongst the best of the industry. STRT outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 3.93 |
ROIC/WACC0.76
WACC9.68%
2.3 Liquidity
A Current Ratio of 2.33 indicates that STRT has no problem at all paying its short term obligations.
STRT has a better Current ratio (2.33) than 78.75% of its industry peers.
A Quick Ratio of 1.64 indicates that STRT should not have too much problems paying its short term obligations.
STRT has a Quick ratio of 1.64. This is amongst the best in the industry. STRT outperforms 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.
STRT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.09% yearly.
Looking at the last year, STRT shows a small growth in Revenue. The Revenue has grown by 5.54% in the last year.
The Revenue has been growing slightly by 2.00% on average over the past years.
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
Based on estimates for the next years, STRT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.58% on average per year.
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
STRT is valuated correctly with a Price/Earnings ratio of 12.78.
STRT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of STRT to the average of the S&P500 Index (27.53), we can say STRT is valued rather cheaply.
The Price/Forward Earnings ratio is 13.06, 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 (36.71), we can say STRT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRT is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
STRT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STRT is cheaper than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.81 | ||
| EV/EBITDA | 5.15 |
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
STRT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.27
+1.77 (+2.88%)
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 Cap255.61M
Analysts43.33
Price Target64.26 (1.56%)
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 | 12.78 | ||
| Fwd PE | 13.06 | ||
| P/S | 0.46 | ||
| P/FCF | 4.81 | ||
| P/OCF | 4.19 | ||
| P/B | 1.21 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)4.95
EY7.82%
EPS(NY)4.85
Fwd EY7.66%
FCF(TTM)13.15
FCFY20.78%
OCF(TTM)15.1
OCFY23.86%
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 | 3.93 |
F-Score6
WACC9.68%
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%