Strattec Security (STRT)
NASDAQ:STRT
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Strattec Security
(NASDAQ:STRT)
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Rating:70Outperform
Price Target:
$80.00
▲(6.31% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by materially improved fundamentals and a very strong, low-leverage balance sheet with solid recent cash generation. This is tempered by weak price/trend technicals (trading well below major moving averages) and mixed valuation, while the latest call was moderately positive but flagged near-term revenue declines and tariff/FX pressures.
Positive Factors
Very low leverage / strong balance sheet
A near-zero debt-to-equity position and growing equity gives Strattec durable financial flexibility. Over 2–6 months this lowers solvency risk, supports program-level working capital, funds transformation initiatives, and permits strategic investments or temporary margin support without needing external financing.
Negative Factors
Near-term revenue declines / lost programs
Canceled EV programs and recent YoY sales declines trim core OEM volumes and reduce scale. Over several quarters this loss of program content pressures revenue stability and makes margin targets harder to reach without replacement awards or higher per-vehicle content.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
A near-zero debt-to-equity position and growing equity gives Strattec durable financial flexibility. Over 2–6 months this lowers solvency risk, supports program-level working capital, funds transformation initiatives, and permits strategic investments or temporary margin support without needing external financing.
Read all positive factors
Strattec Security Key Performance Indicators (KPIs)
Strattec Security (STRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$302.71M
Dividend YieldN/A
Average Volume (3M)114.99K
Price to Earnings (P/E)23.7
Beta (1Y)1.32
Revenue Growth4.22%
EPS Growth23.13%
CountryUS
Employees3,365
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)6.15
Shares Outstanding4,178,799
10 Day Avg. Volume121,014
30 Day Avg. Volume114,989
Financial Highlights & Ratios
PEG Ratio1.02
Price to Book (P/B)1.13
Price to Sales (P/S)0.44
P/FCF Ratio3.89
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda3.94
Forecast
1Y Price Target
$89.00Price Target Upside18.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)6.26
Revenue Forecast (FY)$577.34M
Strattec Security Business Overview & Revenue Model
Company Description
Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company offers mechanical and electronically enhanced locks and key...
How the Company Makes Money
Strattec makes money primarily by selling automotive access and security components to vehicle OEMs and, to a lesser extent, through the aftermarket. The core revenue stream is OEM production sales: Strattec supplies locks, latches and related mec...
Strattec Security Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a mixed but constructive picture: management emphasized strong cash generation, a very healthy balance sheet, realized cost savings from restructuring (including further Mexico savings), and material year-to-date improvements in EPS and adjusted EBITDA, along with a clear multi-year transformation and margin targets. Offsetting these positives were near-term revenue declines (Q3 sales down 4.5%), quarterly EPS and adjusted EBITDA declines versus prior year, meaningful foreign exchange losses and tariff pressure, and the impact of canceled EV programs (~$9M annualized). On balance, the operational and financial improvements plus strong liquidity and a credible transformation plan outweigh the near-term cyclical and FX/tariff headwinds.Positive Updates
Strong cash generation and liquidity
Generated $11.4 million of operating cash flow in the quarter and ended Q3 with $107 million in cash and cash equivalents; balance sheet strength supported repayment of JV-related debt and replacement of the facility with a new revolving credit agreement that extended maturity and removed the company guarantee.
Negative Updates
Quarterly revenue decline
Sales declined 4.5% year-over-year in the quarter; management expects Q4 revenue to be down approximately 3%–4% year-over-year as a result of canceled EV programs and lower production on certain platforms.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong cash generation and liquidity
Generated $11.4 million of operating cash flow in the quarter and ended Q3 with $107 million in cash and cash equivalents; balance sheet strength supported repayment of JV-related debt and replacement of the facility with a new revolving credit agreement that extended maturity and removed the company guarantee.
Read all positive updates
Company Guidance
Management guided that they expect a moderate market environment with Q4 revenue down about 3%–4% year‑over‑year (driven in part by canceled EV programs with an annual impact of roughly $9M, ~2/3 already realized YTD), and reiterated targets of long‑term gross margin of 18%–20% (assuming the peso at a five‑year average of 19.5) versus current gross margin of ~16.5% (Q3 gross profit $22.7M), and SAE of roughly 10%–11% of revenue (Q3 SAE $17.6M, 12.8% of sales); Q3 adjusted EBITDA was $10.1M (YTD adjusted EBITDA $37.9M, +23% YoY), Q3 net income was $3.2M ($0.78 GAAP; adjusted $3.7M, $0.90), Q3 operating cash flow was $11.4M with $107M cash on hand, restructuring actions delivered ~$1.9M in quarterly savings (with ~ $1.7M recorded in gross profit) and Mexico changes are expected to add ~$0.8M annualized savings in Q4, while the company continues to manage $5M–$7M of incremental annual tariff cost and FX headwinds (Q3 ~$900K currency loss, ~ $0.16 EPS impact).Strattec Security Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 579.58M | 565.07M | 537.77M | 492.95M | 452.26M | 485.30M |
| Gross Profit | 97.12M | 84.58M | 65.47M | 42.15M | 56.02M | 78.66M |
| EBITDA | 49.94M | 40.41M | 37.65M | 10.78M | 28.86M | 53.70M |
| Net Income | 24.98M | 18.68M | 16.31M | -6.67M | 7.02M | 22.53M |
Balance Sheet | ||||||
| Total Assets | 399.55M | 391.45M | 364.29M | 340.93M | 319.13M | 310.56M |
| Cash, Cash Equivalents and Short-Term Investments | 106.96M | 84.58M | 25.41M | 20.57M | 8.77M | 14.46M |
| Total Debt | 1.00M | 11.29M | 20.52M | 17.46M | 16.64M | 15.40M |
| Total Liabilities | 132.39M | 145.02M | 138.67M | 129.91M | 99.19M | 97.13M |
| Stockholders Equity | 240.51M | 221.59M | 200.54M | 184.96M | 188.40M | 181.65M |
Cash Flow | ||||||
| Free Cash Flow | 57.92M | 64.52M | 2.48M | -7.28M | -3.75M | 26.22M |
| Operating Cash Flow | 66.83M | 71.68M | 12.27M | 10.10M | 10.44M | 35.15M |
| Investing Cash Flow | -8.65M | -7.16M | -7.79M | -118.00K | -14.33M | -9.02M |
| Financing Cash Flow | -13.39M | -4.94M | 72.00K | 1.58M | -1.89M | -22.89M |
Strattec Security Technical Analysis
Neutral
75.25
Price Trends
74.79
Negative
78.98
Negative
74.75
Negative
Market Momentum
-1.86
Negative
51.58
Neutral
94.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRT, the sentiment is Neutral. The current price of 75.25 is above the 20-day moving average (MA) of 70.12, above the 50-day MA of 74.79, and above the 200-day MA of 74.75, indicating a neutral trend. The MACD of -1.86 indicates Negative momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 94.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STRT.
Strattec Security Risk Analysis
Strattec Security disclosed 26 risk factors in its most recent earnings report. Strattec Security reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Strattec Security Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $302.71M | 23.71 | 10.75% | ― | 4.22% | 23.13% | |
70 Outperform | $139.69M | 1.74 | 11.39% | ― | 17.64% | 42.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $302.13M | 12.30 | 5.30% | ― | 1.87% | ― | |
51 Neutral | $209.59M | 33.64 | 0.75% | ― | 2.24% | ― | |
51 Neutral | $210.35M | -1.90 | -53.45% | ― | -9.34% | -539.67% | |
51 Neutral | $152.20M | -1.30 | -101.64% | ― | 29.57% | 13.83% |
* Consumer Cyclical Sector Average
STRT
Strattec Security
72.44
20.60
39.74%
CAAS
China Automotive Systems
4.63
0.60
14.89%
MPAA
Motorcar Parts Of America
10.91
-0.06
-0.55%
SRI
Stoneridge
7.45
2.70
56.84%
INVZ
Innoviz Technologies
0.71
-0.16
-18.13%
HLLY
Holley
2.51
0.45
21.84%
Strattec Security Corporate Events
Business Operations and StrategyFinancial Disclosures
Strattec Security Reports Lower Sales but Strong Cash
Negative
May 8, 2026
The company reported on May 7, 2026, that for its fiscal third quarter ended March 29, 2026, net sales fell 4.5% to $137.6 million as lower North American OEM production and EV program cancellations weighed on volumes, yet gross margin improved 50...
Business Operations and StrategyPrivate Placements and Financing
Strattec Reduces Credit Exposure With New ADAC-STRATTEC Agreement
Positive
Apr 30, 2026
Effective April 30, 2026, ADAC-STRATTEC, LLC, a majority owned joint venture of Strattec Security Corporation, entered into an amended and restated credit agreement with BMO Bank N.A., replacing its prior credit facility first put in place in June...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.