NasdaqGM:STRT

Stock Analysis Report

Executive Summary

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST brand primarily in the United States.

Rewards

Trading at 84.4% below its fair value

Risk Analysis

Earnings have declined by -51.36% per year over past 5 years

Dividend of 2.54% is not well covered by earnings

Does not have a meaningful market cap ($82M)



Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Strattec Security's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STRT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.09%

STRT

1.1%

US Auto Components

0.8%

US Market


1 Year Return

-40.4%

STRT

1.9%

US Auto Components

25.1%

US Market

Return vs Industry: STRT underperformed the US Auto Components industry which returned 1.9% over the past year.

Return vs Market: STRT underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

STRTIndustryMarket
7 Day-0.09%1.1%0.8%
30 Day2.1%-4.1%3.1%
90 Day9.3%1.8%10.9%
1 Year-39.0%-40.4%3.4%1.9%27.7%25.1%
3 Year-42.2%-45.4%-2.3%-12.3%51.3%41.6%
5 Year-68.8%-71.1%19.2%2.4%77.2%57.6%

Price Volatility Vs. Market

How volatile is Strattec Security's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Strattec Security undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STRT ($22.02) is trading below our estimate of fair value ($141.58)

Significantly Below Fair Value: STRT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STRT is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: STRT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate STRT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: STRT is good value based on its PB Ratio (0.5x) compared to the US Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Strattec Security forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.0%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Strattec Security has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Strattec Security performed over the past 5 years?

-51.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STRT is currently unprofitable.

Growing Profit Margin: STRT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STRT is unprofitable, and losses have increased over the past 5 years at a rate of -51.4% per year.

Accelerating Growth: Unable to compare STRT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: STRT is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (4.1%).


Return on Equity

High ROE: STRT has a negative Return on Equity (-7.67%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Strattec Security's financial position?


Financial Position Analysis

Short Term Liabilities: STRT's short term assets ($155.7M) exceed its short term liabilities ($82.2M).

Long Term Liabilities: STRT's short term assets ($155.7M) exceed its long term liabilities ($43.3M).


Debt to Equity History and Analysis

Debt Level: STRT's debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: STRT's debt to equity ratio has increased from 2.8% to 19.1% over the past 5 years.

Debt Coverage: STRT's debt is well covered by operating cash flow (103.2%).

Interest Coverage: STRT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: STRT has a high level of physical assets or inventory.

Debt Coverage by Assets: STRT's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

What is Strattec Security's current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: STRT's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: STRT's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: STRT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: STRT's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: STRT is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Strattec Security's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Frank Krejci (69yo)

7.3yrs

Tenure

US$646,983

Compensation

Mr. Frank Joseph Krejci has been the Chief Executive Officer of STRATTEC Security Corporation since September 1, 2012 and has been its President since 2010. Mr. Krejci has been the President of Wisconsin F ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD646.98K) is about average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.8yrs

Average Tenure

53yo

Average Age

Experienced Management: STRT's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

20.9yrs

Average Tenure

69yo

Average Age

Experienced Board: STRT's board of directors are seasoned and experienced ( 20.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$53,72429 Mar 19
Teton Advisors, Inc
EntityCompany
Shares1,747
Max PriceUS$32.50
BuyUS$559,25129 Mar 19
GAMCO Investors, Inc.
EntityCompany
Shares17,989
Max PriceUS$34.61
SellUS$112,20711 Feb 19
Harold Stratton
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares3,500
Max PriceUS$32.06

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Pat Hansen (60yo)

    Senior VP

    • Tenure: 20.9yrs
    • Compensation: US$403.87k
  • Frank Krejci (69yo)

    President

    • Tenure: 7.3yrs
    • Compensation: US$646.98k
  • Rolando Guillot (51yo)

    Senior Vice President of Operations

    • Tenure: 2.8yrs
    • Compensation: US$368.92k
  • Richard Messina (53yo)

    Vice President of Global Sales & Access Control Products

    • Tenure: 6.3yrs
    • Compensation: US$376.05k
  • Al-Waleed Hamdan (51yo)

    VP of Global Sales & Product Management

    • Compensation: US$313.69k

Board Members

  • Michael Koss (65yo)

    Independent Director

    • Tenure: 25yrs
    • Compensation: US$104.61k
  • Thomas Florsheim (61yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$104.61k
  • Harold Stratton (71yo)

    Non-Executive Chairman

    • Tenure: 20.9yrs
    • Compensation: US$139.61k
  • David Zimmer (73yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$109.61k
  • Frank Krejci (69yo)

    President

    • Tenure: 7.3yrs
    • Compensation: US$646.98k

Company Information

Strattec Security Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Strattec Security Corporation
  • Ticker: STRT
  • Exchange: NasdaqGM
  • Founded: 1908
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$82.098m
  • Shares outstanding: 3.73m
  • Website: https://www.strattec.com

Number of Employees


Location

  • Strattec Security Corporation
  • 3333 West Good Hope Road
  • Milwaukee
  • Wisconsin
  • 53209
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STRTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDFeb 1995

Biography

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST brand primarily in the United States. The company offers mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power 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. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 23:55
End of Day Share Price2020/01/21 00:00
Earnings2019/09/29
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.