Strattec Security (STRT)
NASDAQ:STRT
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Strattec Security
(NASDAQ:STRT)
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Rating:79Outperform
Price Target:
$89.00
▲(18.27% Upside)
Action:ReiteratedDate:02/06/26
The score is driven primarily by strong financial performance (low leverage, improved profitability, and sharply stronger free cash flow) and supportive technical trends (price above key moving averages with positive momentum). The outlook is tempered by earnings-call guidance for a modest second-half revenue decline and ongoing FX/labor/tariff headwinds, while valuation appears reasonable but lacks dividend yield support in the provided data.
Positive Factors
Balance sheet strength
Very low leverage and a near-$100M cash balance provide durable financial flexibility, enabling funding for program ramp, restructuring costs, modest capex, or selective M&A without relying on external debt. This reduces solvency risk during automotive downturns and supports strategic optionality.
Negative Factors
OEM concentration & program exposure
Revenue is structurally tied to a few large OEM customers and platform award cycles, which reduces revenue visibility and amplifies downside when OEM volumes or content per vehicle decline. This concentration constrains diversification and increases sensitivity to single-customer decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and a near-$100M cash balance provide durable financial flexibility, enabling funding for program ramp, restructuring costs, modest capex, or selective M&A without relying on external debt. This reduces solvency risk during automotive downturns and supports strategic optionality.
Read all positive factors
Strattec Security (STRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$317.37M
Dividend YieldN/A
Average Volume (3M)60.46K
Price to Earnings (P/E)15.9
Beta (1Y)1.51
Revenue Growth6.83%
EPS Growth46.38%
CountryUS
Employees3,365
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.71
Shares Outstanding4,179,778
10 Day Avg. Volume74,243
30 Day Avg. Volume60,459
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 Cap0.70
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit2.27
Enterprise Value/Ebitda4.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.25
Revenue Forecast (FY)$576.70M
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 primarily makes money by manufacturing and selling vehicle access and security products to automotive OEMs under supply agreements and program awards tied to specific vehicle platforms. Its core revenue stream is the sale of access-contro...
Strattec Security Key Performance Indicators (KPIs)
Strattec Security Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful progress from Strattec's transformation: strong revenue growth, sizable margin expansion (330 bps), substantial EPS growth (adjusted EPS +163%), robust cash generation, and a very healthy balance sheet with $99M cash and minimal debt. These operational and financial improvements materially outweigh near-term headwinds, which include FX and Mexico labor costs, tariff and supply-chain pressures, an expected modest revenue decline in the back half (down ~3%–4% YoY), and one-time charges raising SAE in the quarter. Management provided clear actions (cost savings, inventory strategy, SAE guidance, and capex discipline) to address the challenges and reiterated confidence in the longer-term margin baseline (15%–16%) and $40M annual cash generation goal.Positive Updates
Revenue Growth
Sales of $137.5 million in Q2, up 6% year-over-year driven by pricing, favorable mix, new program launches, higher content value and $1.3 million of tariff recovery.
Negative Updates
Near-Term Revenue Outlook
Company expects the second half of the fiscal year to be down approximately 3% to 4% year-over-year as pricing laps, OEM production forecasts moderate, and industry headwinds persist.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Sales of $137.5 million in Q2, up 6% year-over-year driven by pricing, favorable mix, new program launches, higher content value and $1.3 million of tariff recovery.
Read all positive updates
Company Guidance
The company guided to a slight sequential sales improvement in Q3 but said second-half fiscal 2026 sales are expected to be down roughly 3%–4% year‑over‑year, while aiming to sustain a raised gross margin baseline in the 15%–16% range as it advances toward its longer‑term goal; SG&A (SAE) is expected to normalize to about 10%–11% of sales in the back half of the year. Management reiterated operational targets including roughly $3.4 million of annualized savings from fiscal ’26 restructuring and a voluntary retirement program (with only ~$400k realized in Q2 and run‑rate reaching about $800k per quarter by Q4), an annual operating cash generation target of about $40 million, and fiscal 2026 capital expenditures of less than $10 million. They also flagged continued headwinds from foreign exchange (about $1.6 million in Q2 and an approximate $4 million annualized gross‑margin impact for every 5% move in USD/MXN), noted tariff recoveries (about $1.3 million in Q2), and emphasized balance‑sheet flexibility with $99 million of cash and just $2.5 million of total debt while remaining open to M&A.Strattec Security Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 586.03M | 565.07M | 537.77M | 492.95M | 452.26M | 452.26M |
| Gross Profit | 97.56M | 84.58M | 65.47M | 42.15M | 56.02M | 56.02M |
| EBITDA | 51.77M | 40.41M | 37.65M | 10.78M | 28.86M | 28.86M |
| Net Income | 27.14M | 18.68M | 16.31M | -6.67M | 7.02M | 7.02M |
Balance Sheet | ||||||
| Total Assets | 392.25M | 391.45M | 364.29M | 340.93M | 319.13M | 310.56M |
| Cash, Cash Equivalents and Short-Term Investments | 99.03M | 84.58M | 25.41M | 20.57M | 8.77M | 14.46M |
| Total Debt | 2.50M | 11.29M | 20.52M | 17.46M | 16.64M | 15.40M |
| Total Liabilities | 129.23M | 145.02M | 138.67M | 129.91M | 99.19M | 97.13M |
| Stockholders Equity | 236.80M | 221.59M | 200.54M | 184.96M | 188.40M | 181.65M |
Cash Flow | ||||||
| Free Cash Flow | 67.78M | 64.52M | 2.48M | -7.28M | -3.75M | 26.22M |
| Operating Cash Flow | 76.10M | 71.68M | 12.27M | 10.10M | 10.44M | 35.15M |
| Investing Cash Flow | -8.07M | -7.16M | -7.79M | -118.00K | -14.33M | -9.02M |
| Financing Cash Flow | -11.81M | -4.94M | 72.00K | 1.58M | -1.89M | -22.89M |
Strattec Security Technical Analysis
Negative
75.25
Price Trends
82.44
Negative
79.43
Negative
72.93
Positive
Market Momentum
-1.37
Negative
43.45
Neutral
43.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRT, the sentiment is Negative. The current price of 75.25 is below the 20-day moving average (MA) of 77.28, below the 50-day MA of 82.44, and above the 200-day MA of 72.93, indicating a neutral trend. The MACD of -1.37 indicates Negative momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 43.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $317.37M | 15.92 | 12.07% | ― | 6.83% | 46.38% | |
73 Outperform | $126.11M | 3.67 | 9.22% | ― | 16.72% | 5.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $360.74M | 25.68 | -5.54% | ― | -3.20% | -257.73% | |
51 Neutral | $203.83M | 33.64 | 0.75% | ― | 6.72% | ― | |
48 Neutral | $141.59M | -2.52 | -73.64% | ― | 46.09% | 46.01% | |
46 Neutral | $135.60M | -1.57 | -43.54% | ― | -4.91% | -331.53% |
* Consumer Cyclical Sector Average
STRT
Strattec Security
75.93
40.50
114.31%
CAAS
China Automotive Systems
4.18
0.53
14.52%
MPAA
Motorcar Parts Of America
10.61
1.71
19.21%
SRI
Stoneridge
4.84
0.95
24.42%
INVZ
Innoviz Technologies
0.66
0.13
23.60%
HLLY
Holley
3.01
0.64
27.00%
Strattec Security Corporate Events
Business Operations and StrategyFinancial Disclosures
Strattec Security Delivers Strong Fiscal Q2 Results, Restructuring Advances
Positive
Feb 5, 2026
On February 5, 2026, Strattec reported results for its fiscal second quarter ended December 28, 2025, highlighting a 6% year-on-year increase in net sales to $137.5 million, driven by pricing actions, favorable mix, new program launches and tariff...
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.