STRATTEC SECURITY CORP (STRT) Stock Fundamental Analysis
NASDAQ:STRT - Nasdaq - US8631111007 - Common Stock - Currency: USD
Overall STRT gets a fundamental rating of 5 out of 10. We evaluated STRT against 81 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
With an excellent Return On Assets value of 5.17%, STRT belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Equity of STRT (9.51%) is worse than 61.73% of its industry peers.
STRT has a worse Return On Invested Capital (7.38%) than 64.20% 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 61.73% of the companies in the same industry.
STRT's Profit Margin has declined in the last couple of years.
The Operating Margin of STRT (4.31%) is worse than 71.60% of its industry peers.
STRT's Operating Margin has improved in the last couple of years.
STRT has a worse Gross Margin (13.98%) than 80.25% 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 | 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.
Compared to 1 year ago, STRT has more shares outstanding
STRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STRT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.90 indicates that STRT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.90, STRT is doing good in the industry, outperforming 79.01% of the companies in the same industry.
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's Debt to FCF ratio of 0.24 is amongst the best of the industry. STRT outperforms 96.30% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that STRT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, STRT belongs to the top of the industry, outperforming 90.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.73
WACC10.07%
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.
The Current ratio of STRT (2.33) is better than 79.01% of its industry peers.
A Quick Ratio of 1.64 indicates that STRT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.64, STRT belongs to the top of the industry, outperforming 87.65% of the companies in the same industry.
| 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.
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)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
STRT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.58% yearly.
STRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.55% yearly.
EPS Next Y-22.31%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 11.57, the valuation of STRT can be described as reasonable.
STRT's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.35. STRT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.82, the valuation of STRT can be described as very reasonable.
STRT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, STRT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STRT indicates a somewhat cheap valuation: STRT is cheaper than 64.20% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STRT is valued cheaper than 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.36 | ||
| EV/EBITDA | 4.86 |
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 |
57.27
-1.45 (-2.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners75.53%
Inst Owner Change3.98%
Ins Owners3.3%
Ins Owner Change-0.91%
Market Cap231.37M
Analysts43.33
Price Target64.26 (12.21%)
Short Float %0.53%
Short Ratio0.52
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)26%
PT rev (3m)26%
EPS NQ rev (1m)17.58%
EPS NQ rev (3m)17.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 11.82 | ||
| P/S | 0.42 | ||
| P/FCF | 4.36 | ||
| P/OCF | 3.79 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 4.86 |
EPS(TTM)4.95
EY8.64%
EPS(NY)4.85
Fwd EY8.46%
FCF(TTM)13.15
FCFY22.95%
OCF(TTM)15.1
OCFY26.36%
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 | 3.9 |
F-Score6
WACC10.07%
ROIC/WACC0.73
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-22.31%
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%