Strattec Security (STRT) AI Stock Analysis

• Market Cap: $291.68M
• Dividend Yield: N/A
• Average Volume (3M): 89.99K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.36
• Revenue Growth: 5.54%
• EPS Growth: 398.82%
• Country: US
• Employees: 3,365
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): 1.50
• Shares Outstanding: 4,168,104
• 10 Day Avg. Volume: 159,769
• 30 Day Avg. Volume: 89,992
• PEG Ratio: 0.06
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.24
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.86
• Enterprise Value/Ebitda: 0.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $77.00 ▲(10.03%Upside)

Strattec Security's strong financial performance, effective risk mitigation strategies, and robust earnings call results are the primary drivers of the stock's high score. The technical indicators suggest a bullish trend, although the overbought RSI warrants caution. The valuation is attractive, supporting the stock's overall positive outlook.

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 keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products. It also provides full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

Strattec Security generates revenue primarily through the sale of its access control products to automotive OEMs and the aftermarket. The company's key revenue streams include the production and sale of traditional mechanical locks and keys, electronic locking systems, and ignition lock housings. In addition to product sales, Strattec also earns from engineering and design services related to vehicle security systems, which are often integrated into larger projects with their OEM partners. Significant partnerships with major automotive manufacturers enhance Strattec's market reach and contribute to its earnings by ensuring a steady demand for its innovative security solutions. The company's focus on research and development allows it to adapt to evolving automotive technologies, further solidifying its revenue base.

Strattec Security Financial Statement Overview

Summary

Strattec Security exhibits a commendable financial position with improving revenues and profitability, a debt-free balance sheet, and strong cash flows. The company is well-positioned for future growth with efficient cost management and liquidity. While the slight decline in the EBITDA margin and total assets warrants monitoring, the overall financial health is strong, providing a solid foundation for strategic expansion.

Income Statement

Strattec Security's income statement shows solid growth, with revenue increasing from $492.9M in 2023 to $552.8M in TTM (Trailing-Twelve-Months), a growth rate of 12.13%. The gross profit margin improved to 12.54%, indicating efficient production cost management. The net profit margin turned positive to 2.92% after a previous loss, reflecting improved profitability. However, the EBITDA margin decreased slightly from 7.01% to 4.67%, suggesting rising operating expenses.

Balance Sheet

The balance sheet is robust, with a strong equity position, as shown by an equity ratio of 58.39%. The company has no debt, reducing financial risk, and a healthy return on equity of 7.89%. The increase in cash reserves enhances liquidity, supporting future investments and operations. However, the total assets decreased slightly, which could be a potential concern if it continues.

Cash Flow

Strattec's cash flow is strong, with free cash flow increasing significantly to $31.58M from $2.48M annually, a growth rate of 1172.58%. The operating cash flow to net income ratio is robust at 2.47, indicating strong cash conversion. The company effectively manages its capital expenditures, enhancing free cash flow, which supports financial stability and growth opportunities.

Breakdown	TTM	Jun 2024	Sep 2023	Sep 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	556.11M	537.77M	492.95M	452.26M	485.30M	385.30M
Gross Profit	77.74M	65.47M	42.15M	56.02M	78.66M	35.45M
EBITDA	35.36M	37.65M	10.78M	28.86M	55.10M	12.13M
Net Income	20.04M	16.31M	-6.67M	7.02M	22.53M	-5.86M
Balance Sheet
Total Assets	382.12M	364.29M	340.93M	318.68M	310.56M	265.55M
Cash, Cash Equivalents and Short-Term Investments	62.11M	25.41M	20.57M	8.77M	14.46M	11.77M
Total Debt	0.00	13.00M	13.00M	11.00M	12.00M	35.00M
Total Liabilities	171.42M	138.67M	129.91M	98.27M	97.13M	90.10M
Stockholders Equity	210.70M	200.54M	184.96M	188.87M	181.65M	152.22M
Cash Flow
Free Cash Flow	53.11M	2.48M	-7.28M	-3.75M	26.22M	13.04M
Operating Cash Flow	60.99M	12.27M	10.10M	10.44M	35.15M	25.42M
Investing Cash Flow	-7.88M	-7.79M	8.90M	-14.33M	-9.02M	-12.35M
Financing Cash Flow	61.00K	72.00K	-7.44M	-1.89M	-22.89M	-8.99M

Strattec Security Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 69.98 is above the 20-day moving average (MA) of 59.61, above the 50-day MA of 50.47, and above the 200-day MA of 43.17, indicating a bullish trend. The MACD of 4.03 indicates Negative momentum. The RSI at 82.39 is Negative, neither overbought nor oversold. The STOCH value of 86.72 is Negative, 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	78 Outperform	$291.68M	14.14	9.91%	―	5.54%	398.82%
CAAS	68 Neutral	$126.11M	4.38	8.05%	―	18.33%	-26.25%
MPAA	65 Neutral	$240.81M	―	-7.17%	―	5.53%	60.54%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
SRI	58 Neutral	$221.93M	―	-6.63%	―	-8.90%	-346.80%
KNDI	46 Neutral	$97.16M	―	-13.49%	―	3.21%	-6985.88%
SSUP	41 Neutral	$4.57M	―	-80.07%	―	-3.63%	36.19%

Strattec Security Corporate Events

Strattec Security Reports Strong Q3 2025 Financial Results

On May 8, 2025, STRATTEC Security Corporation announced its financial results for the third quarter of fiscal year 2025, ending March 30, 2025. The company generated $20.7 million in cash from operations and reported a net income of $5.4 million, a significant increase from the previous year. The company also highlighted its efforts in cost reduction, including restructuring operations in Mexico and Milwaukee, which are expected to generate $5 million in annual savings. Despite challenges from tariffs, STRATTEC is implementing mitigation strategies and focusing on operational excellence to enhance earnings power.