Strattec Security (STRT) AI Stock Analysis

• Market Cap: $337.54M
• Dividend Yield: N/A
• Average Volume (3M): 54.69K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.57
• 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: 61,685
• 30 Day Avg. Volume: 54,694
• 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: 0.64
• 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: 80 Outperform
• Price Target: $89.00 ▲(18.27% Upside)

Strattec Security's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. The company's robust balance sheet and strategic initiatives position it well despite industry challenges. Technical indicators suggest bullish momentum, though valuation metrics indicate limited upside potential.

Positive Factors

Revenue Growth

The company's strong revenue growth and improved margins indicate effective strategic actions, enhancing its competitive position in the automotive security market.

Cash Generation

Robust cash generation and a strong cash position provide financial flexibility for future investments and resilience against industry challenges.

Operational Modernization

Automation and modernization efforts are expected to improve operational efficiency and reduce costs, strengthening long-term competitiveness.

Negative Factors

Industry Challenges

Supply chain disruptions and material shortages pose significant risks to production continuity and could affect revenue and profitability.

Cost Increases

Rising labor costs in key manufacturing locations may pressure margins, necessitating further efficiency improvements to maintain profitability.

Tariff and Currency Headwinds

Tariff expenses and currency fluctuations can erode profit margins, requiring strategic management to mitigate financial impacts.

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 maintains low leverage and effective use of equity capital, although there is room for improvement in operational efficiency.

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 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	578.41M	565.07M	537.77M	492.95M	452.26M	485.30M
Gross Profit	91.99M	84.58M	65.47M	42.15M	56.02M	78.66M
EBITDA	46.04M	40.41M	37.65M	10.78M	28.86M	28.86M
Net Income	23.51M	18.68M	16.31M	-6.67M	7.02M	22.53M
Balance Sheet
Total Assets	390.06M	391.45M	364.29M	340.93M	319.13M	310.56M
Cash, Cash Equivalents and Short-Term Investments	90.47M	84.58M	25.41M	20.57M	8.77M	14.46M
Total Debt	5.00M	11.29M	17.13M	17.46M	14.02M	15.40M
Total Liabilities	134.28M	145.02M	138.67M	129.91M	99.19M	97.13M
Stockholders Equity	230.55M	221.59M	200.54M	184.96M	188.40M	181.65M
Cash Flow
Free Cash Flow	65.06M	64.52M	2.48M	-7.28M	-3.75M	26.22M
Operating Cash Flow	71.67M	71.68M	12.27M	10.10M	10.44M	35.15M
Investing Cash Flow	-6.61M	-7.16M	-7.79M	-118.00K	-14.33M	-9.02M
Financing Cash Flow	-8.86M	-4.94M	72.00K	1.58M	-1.89M	-22.89M

Strattec Security Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 75.25 is below the 20-day moving average (MA) of 78.40, above the 50-day MA of 71.27, and above the 200-day MA of 59.81, indicating a bullish trend. The MACD of 2.86 indicates Positive momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 67.13 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	80 Outperform	$337.54M	14.00	10.85%	―	6.83%	46.38%
CAAS	69 Neutral	$130.64M	3.90	9.19%	―	16.72%	5.35%
HLLY	64 Neutral	$497.71M	-20.12	-5.54%	―	-3.20%	-257.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	59 Neutral	$247.41M	105.64	0.94%	―	6.72%	―
INVZ	47 Neutral	$223.14M	-2.85	-71.46%	―	46.09%	46.01%
SRI	45 Neutral	$158.30M	-4.91	-12.26%	―	-4.91%	-331.53%

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.

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.