Strattec Security (STRT) AI Stock Analysis

• Market Cap: $283.30M
• Dividend Yield: N/A
• Average Volume (3M): 48.76K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.56
• Revenue Growth: 6.83%
• EPS Growth: 46.38%
• Country: US
• Employees: 3,365
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.22
• Shares Outstanding: 4,185,271
• 10 Day Avg. Volume: 59,029
• 30 Day Avg. Volume: 48,758
• PEG Ratio: 1.02
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 3.89
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 4.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.23
• Revenue Forecast (FY): $577.01M

• Rating: 71 Outperform
• Price Target: $68.00 ▲(3.39% Upside)

Strattec Security's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. However, the bearish technical indicators and valuation concerns slightly offset these strengths. The company's proactive measures and strong cash position provide resilience against industry challenges.

Strattec Security Business Overview & Revenue Model

Company Description

Strattec Security Corporation (STRT) is a leading provider of automotive locking systems and security solutions. The company operates primarily in the automotive sector, specializing in the design, development, and manufacturing of locks, keys, and electronic security systems for vehicles. Strattec's core products include traditional mechanical locks, electronic locking systems, and smart key technologies that enhance vehicle security and convenience. The company serves major automotive manufacturers and aftermarket customers, ensuring robust security solutions for various vehicle types.

How the Company Makes Money

Strattec Security generates revenue primarily through the sale of its automotive locking systems and security products to original equipment manufacturers (OEMs) and the aftermarket. The company's revenue model is based on the production and distribution of mechanical locks, electronic locks, and key systems, which are essential components in vehicle manufacturing and security. Key revenue streams include direct sales to automotive manufacturers, contracts for the supply of security solutions, and aftermarket sales of replacement keys and locks. Additionally, Strattec benefits from partnerships with major automotive companies, enabling it to secure long-term contracts and maintain a steady flow of income. The company also invests in research and development to innovate and expand its product offerings, which can lead to increased market share and profitability.

Strattec Security Financial Statement Overview

Summary

Strattec Security exhibits strong financial performance with solid revenue growth, efficient cash generation, and a stable balance sheet. The company is well-positioned in the Auto - Parts industry, with low leverage and effective use of equity capital. While operational efficiency could be improved, the company's financial health remains robust.

Income Statement

Strattec Security shows strong revenue growth with a TTM increase of 2.36% and a solid gross profit margin of 15.9%. The net profit margin is healthy at 4.06%, indicating efficient cost management. However, the EBIT margin of 3.48% suggests room for improvement in operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.022, reflecting conservative leverage. Return on equity is strong at 10.84%, showcasing effective use of equity capital. The equity ratio of 59.1% indicates a stable financial position with a significant portion of assets financed by equity.

Cash Flow

Strattec Security demonstrates impressive free cash flow growth of 82.8% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.62 indicates efficient cash conversion. The free cash flow to net income ratio of 0.91 further underscores the company's ability to generate cash relative to its earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	578.41M	565.07M	537.77M	487.01M	439.19M	417.32M
Gross Profit	91.99M	84.58M	65.47M	57.80M	54.44M	60.16M
EBITDA	46.04M	40.41M	37.65M	-1.66M	33.42M	28.23M
Net Income	23.51M	18.68M	16.31M	-12.69M	12.28M	7.20M
Balance Sheet
Total Assets	390.06M	391.45M	364.29M	312.74M	307.18M	273.71M
Cash, Cash Equivalents and Short-Term Investments	90.47M	84.58M	25.41M	7.81M	8.09M	8.36M
Total Debt	5.00M	11.29M	13.00M	42.00M	51.00M	30.00M
Total Liabilities	134.28M	145.02M	138.67M	124.92M	123.93M	101.00M
Stockholders Equity	230.55M	221.59M	200.54M	163.39M	162.16M	151.09M
Cash Flow
Free Cash Flow	65.06M	64.52M	2.48M	12.49M	-17.19M	-13.87M
Operating Cash Flow	71.67M	71.68M	12.27M	29.94M	6.94M	23.14M
Investing Cash Flow	-6.61M	-7.16M	-7.79M	-17.60M	-23.92M	-39.54M
Financing Cash Flow	-8.86M	-4.94M	72.00K	-12.18M	16.39M	9.23M

Strattec Security Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRT, the sentiment is Positive. The current price of 65.77 is below the 20-day moving average (MA) of 66.48, below the 50-day MA of 67.50, and above the 200-day MA of 55.58, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 60.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRT.

Strattec Security Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRT	71 Outperform	$283.30M	11.97	10.85%	―	6.83%	46.38%
CAAS	69 Neutral	$125.21M	4.33	8.04%	―	17.08%	-18.03%
HLLY	65 Neutral	$432.63M	―	-5.54%	―	-3.20%	-257.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	57 Neutral	$336.34M	109.91	0.94%	―	6.72%	―
SRI	54 Neutral	$167.82M	―	-12.26%	―	-4.91%	-331.53%
INVZ	41 Neutral	$335.29M	―	-72.45%	―	17.32%	37.70%

Strattec Security Corporate Events

Strattec Security Reports Q1 2026 Financial Results

On October 30, 2025, Strattec Security Corporation announced its financial results for the first quarter of fiscal year 2026, ending September 28, 2025. The company reported a gross margin of 17.3% on $152.4 million in sales, with net income attributable to Strattec at $8.5 million. Operational improvements and restructuring in Mexico are expected to yield $1 million in annual savings. Despite challenges in the North American automotive industry, Strattec maintains a strong balance sheet with $90.5 million in cash and minimal debt, supporting its business transformation and growth initiatives.

The most recent analyst rating on (STRT) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Strattec Security stock, see the STRT Stock Forecast page.

Strattec Security Holds Annual Shareholders Meeting

On October 15, 2025, Strattec Security Corporation held its Annual Meeting of Shareholders, where approximately 69.36% of the outstanding common shares were represented. During the meeting, shareholders elected directors to the board, ratified Deloitte & Touche LLP as the independent registered public accounting firm, and approved the executive compensation for 2025.

The most recent analyst rating on (STRT) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Strattec Security stock, see the STRT Stock Forecast page.

Strattec Security’s Earnings Call Highlights Growth and Challenges

Strattec Security Corporation’s recent earnings call conveyed a predominantly positive sentiment, reflecting strong financial results and operational improvements. Despite facing challenges such as tariff costs and a dependency on North American market conditions, the company maintains a favorable outlook with a continued focus on transformation and growth.

Strattec Security’s Financial Stability Threatened by Legal and Regulatory Challenges

Strattec Security faces potential financial risks due to its involvement in various legal and regulatory proceedings. These proceedings, which are part of the normal business operations, include disputes related to commercial contracts, intellectual property, and other legal matters. The outcome of such claims could significantly impact the company’s financial health, operating results, and cash flow. As no guarantees can be made regarding the resolution of these issues, they represent a notable risk factor for the company.

Strattec Reports Strong Fiscal 2025 Q4 Results

Strattec Security Corporation is a prominent provider of smart vehicle access, security, and authorization solutions within the global automotive industry, known for its innovative transition from mechanical to integrated electro-mechanical systems. In its fiscal year 2025 fourth quarter, Strattec reported a notable expansion in gross margin to 16.7% from 13.0% in the previous year, alongside a year-over-year sales increase to $565.1 million. The company also reported a significant improvement in cash flow, generating $30.2 million in cash from operations during the fourth quarter and $71.7 million for the full year, while reducing its debt by $5 million. Net income for the fourth quarter was $8.3 million, or $2.01 per diluted share, with an adjusted EBITDA of $13.0 million. For the full fiscal year, net income was $18.7 million, or $4.58 per diluted share, reflecting a positive growth compared to the previous year. Strattec’s strategic efforts included executing over $8 million in new annualized pricing and restructuring operations to cut $5 million in costs. Looking ahead, Strattec remains optimistic about its long-term prospects despite facing near-term market uncertainties, such as revised downward North American automotive production estimates and a lull in new vehicle launches by key customers. The company plans to stabilize operations, deepen customer relationships, and enhance product roadmaps to improve its competitive position.

Strattec Security Reports Strong Q4 2025 Financial Results

On August 14, 2025, Strattec Security Corporation announced its financial results for the fourth quarter of fiscal year 2025, ending June 29, 2025. The company reported an increase in gross margin to 16.7% from 13.0% in the previous year, with net sales rising by 6.3% to $152.0 million. Strattec’s net income for the quarter was $8.3 million, and the company generated $30.2 million in cash from operations. The company also reduced its debt by $5 million, maintaining a strong cash position of $84.6 million. Despite facing market uncertainties, Strattec is focused on stabilizing operations, enhancing customer relationships, and improving its competitive position.