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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
STRT had positive earnings in the past year.
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
With a Return On Assets value of 4.54%, STRT is not doing good in the industry: 60.49% of the companies in the same industry are doing better.
With a Return On Equity value of 7.89%, STRT is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
STRT's Return On Invested Capital of 5.93% is on the low side compared to the rest of the industry. STRT is outperformed by 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 7.89% | ||
| ROIC | 5.93% |
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
With a Profit Margin value of 2.92%, STRT is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
STRT's Profit Margin has declined in the last couple of years.
STRT has a Operating Margin of 3.41%. This is in the lower half of the industry: STRT underperforms 75.31% of its industry peers.
In the last couple of years the Operating Margin of STRT has grown nicely.
STRT's Gross Margin of 12.54% is on the low side compared to the rest of the industry. STRT is outperformed by 82.72% of its industry peers.
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 | 3.41% | ||
| PM (TTM) | 2.92% | ||
| GM | 12.54% |
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
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 more shares outstanding
Compared to 5 years ago, STRT has more shares outstanding
Compared to 1 year ago, STRT has an improved debt to assets ratio.
2.2 Solvency
STRT has an Altman-Z score of 3.84. This indicates that STRT is financially healthy and has little risk of bankruptcy at the moment.
STRT has a Altman-Z score of 3.84. This is amongst the best in the industry. STRT outperforms 81.48% of its industry peers.
STRT has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.41, STRT belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
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 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.64
WACC9.28%
2.3 Liquidity
STRT has a Current Ratio of 2.60. This indicates that STRT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.60, STRT belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
STRT has a Quick Ratio of 1.65. This is a normal value and indicates that STRT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.65, STRT belongs to the top of the industry, outperforming 86.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
STRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 7900.00%, which is quite impressive.
STRT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.09% yearly.
STRT shows a small growth in Revenue. In the last year, the Revenue has grown by 7.69%.
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)7900%
EPS 3Y-12.09%
EPS 5YN/A
EPS Q2Q%23.08%
Revenue 1Y (TTM)7.69%
Revenue growth 3Y3.48%
Revenue growth 5Y2%
Sales Q2Q%9.61%
3.2 Future
The Earnings Per Share is expected to decrease by -1.90% on average over the next years.
STRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
EPS Next Y-22.31%
EPS Next 2Y-1.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.77%
Revenue Next 2Y4.08%
Revenue Next 3YN/A
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.
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
Based on the Price/Earnings ratio of 8.78, the valuation of STRT can be described as reasonable.
69.14% of the companies in the same industry are more expensive than STRT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.18, STRT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.96 indicates a reasonable valuation of STRT.
The rest of the industry has a similar Price/Forward Earnings ratio as STRT.
STRT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRT is valued a bit cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STRT is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.64 | ||
| EV/EBITDA | 3.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STRT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:STRT (5/2/2025, 8:24:31 PM)
35.11
+1.08 (+3.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners69.35%
Inst Owner Change-2.85%
Ins Owners3.99%
Ins Owner Change-0.9%
Market Cap146.41M
Analysts43.33
Price Target51 (45.26%)
Short Float %0.82%
Short Ratio1.3
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)36.55%
Min EPS beat(2)12.04%
Max EPS beat(2)61.06%
EPS beat(4)4
Avg EPS beat(4)213.12%
Min EPS beat(4)12.04%
Max EPS beat(4)516.62%
EPS beat(8)6
Avg EPS beat(8)152.11%
EPS beat(12)6
Avg EPS beat(12)0.63%
EPS beat(16)8
Avg EPS beat(16)-1.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)1.76%
Revenue beat(4)2
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)6.64%
Revenue beat(8)6
Avg Revenue beat(8)2.83%
Revenue beat(12)7
Avg Revenue beat(12)0.97%
Revenue beat(16)8
Avg Revenue beat(16)-0.32%
PT rev (1m)0%
PT rev (3m)11.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)37.68%
EPS NY rev (1m)0%
EPS NY rev (3m)12.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.26 | ||
| P/FCF | 4.64 | ||
| P/OCF | 3.66 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 3.45 |
EPS(TTM)4
EY11.39%
EPS(NY)3.92
Fwd EY11.16%
FCF(TTM)7.57
FCFY21.57%
OCF(TTM)9.58
OCFY27.29%
SpS132.57
BVpS49.05
TBVpS49.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 7.89% | ||
| ROCE | 7.3% | ||
| ROIC | 5.93% | ||
| ROICexc | 7.11% | ||
| ROICexgc | 7.11% | ||
| OM | 3.41% | ||
| PM (TTM) | 2.92% | ||
| GM | 12.54% | ||
| FCFM | 5.71% |
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-Score7
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 55.76% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 18.72 | ||
| Cash Conversion | 117.93% | ||
| Profit Quality | 195.54% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 3.84 |
F-Score7
WACC9.28%
ROIC/WACC0.64
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)7900%
EPS 3Y-12.09%
EPS 5YN/A
EPS Q2Q%23.08%
EPS Next Y-22.31%
EPS Next 2Y-1.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.69%
Revenue growth 3Y3.48%
Revenue growth 5Y2%
Sales Q2Q%9.61%
Revenue Next Year4.77%
Revenue Next 2Y4.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y280.13%
EBIT growth 3Y-19.3%
EBIT growth 5Y10.94%
EBIT Next Year219.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3614.71%
FCF growth 3Y-54.46%
FCF growth 5Y-27.64%
OCF growth 1Y108.56%
OCF growth 3Y-29.6%
OCF growth 5Y-16.35%