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STRATTEC SECURITY CORP (STRT) Stock Fundamental Analysis

NASDAQ:STRT - Nasdaq - US8631111007 - Common Stock - Currency: USD

64.81  -1.54 (-2.32%)

Fundamental Rating

5

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.


Dividend Valuation Growth Profitability Health

3

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.
STRT Yearly Net Income VS EBIT VS OCF VS FCFSTRT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M 30M

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 RankSector 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
STRT Yearly ROA, ROE, ROICSTRT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10 15

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 RankSector 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%
STRT Yearly Profit, Operating, Gross MarginsSTRT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

7

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.
STRT Yearly Shares OutstandingSTRT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1M 2M 3M
STRT Yearly Total Debt VS Total AssetsSTRT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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 RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.24
Altman-Z 4
ROIC/WACC0.76
WACC9.67%
STRT Yearly LT Debt VS Equity VS FCFSTRT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

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 RankSector Rank
Current Ratio 2.33
Quick Ratio 1.64
STRT Yearly Current Assets VS Current LiabilitesSTRT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

5

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.
STRT Yearly Revenue VS EstimatesSTRT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M
STRT Yearly EPS VS EstimatesSTRT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4 6

5

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 RankSector Rank
PE 13.09
Fwd PE 13.38
STRT Price Earnings VS Forward Price EarningsSTRT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 4.93
EV/EBITDA 5.66
STRT Per share dataSTRT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.11%
EPS Next 3Y9.58%

0

5. Dividend

5.1 Amount

No dividends for STRT!.
Industry RankSector Rank
Dividend Yield N/A

STRATTEC SECURITY CORP

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)05-08 2025-05-08/amc
Earnings (Next)08-07 2025-08-07/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%