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.


Snowflake Analysis

Excellent balance sheet and good 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

-3.1%

STRT

-12.6%

US Auto Components

-2.0%

US Market


1 Year Return

-53.2%

STRT

-50.1%

US Auto Components

-15.1%

US Market

Return vs Industry: STRT underperformed the US Auto Components industry which returned -50.1% over the past year.

Return vs Market: STRT underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

STRTIndustryMarket
7 Day-3.1%-12.6%-2.0%
30 Day-32.0%-37.4%-19.7%
90 Day-39.1%-49.2%-23.2%
1 Year-51.9%-53.2%-49.4%-50.1%-13.4%-15.1%
3 Year-37.5%-41.1%-47.9%-53.2%10.9%3.7%
5 Year-79.7%-81.3%-45.6%-53.5%28.4%14.4%

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 ($14.05) is trading below our estimate of fair value ($31.61)

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


Price To Earnings Ratio

PE vs Industry: STRT is poor value based on its PE Ratio (33.2x) compared to the Auto Components industry average (10.8x).

PE vs Market: STRT is poor value based on its PE Ratio (33.2x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: STRT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: STRT is good value based on its PB Ratio (0.3x) compared to the US Auto Components industry average (0.7x).


Next Steps

Future Growth

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

61.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRT's forecast earnings growth (61.2% per year) is above the savings rate (1.7%).

Earnings vs Market: STRT's earnings (61.2% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STRT's revenue (1.2% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: STRT's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STRT's Return on Equity is forecast to be low in 3 years time (4.3%).


Next Steps

Past Performance

How has Strattec Security performed over the past 5 years?

-51.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STRT has high quality earnings.

Growing Profit Margin: STRT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: STRT's earnings have declined by -51.1% per year over the past 5 years.

Accelerating Growth: STRT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: STRT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (-4.2%).


Return on Equity

High ROE: STRT's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Strattec Security's financial position?


Financial Position Analysis

Short Term Liabilities: STRT's short term assets ($143.5M) exceed its short term liabilities ($65.4M).

Long Term Liabilities: STRT's short term assets ($143.5M) exceed its long term liabilities ($39.3M).


Debt to Equity History and Analysis

Debt Level: STRT's debt to equity ratio (16.9%) is considered satisfactory.

Reducing Debt: STRT's debt to equity ratio has increased from 2.5% to 16.9% over the past 5 years.

Debt Coverage: STRT's debt is well covered by operating cash flow (96.3%).

Interest Coverage: STRT's interest payments on its debt are well covered by EBIT (3.6x coverage).


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 4.5x debt).


Next Steps

Dividend

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

3.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STRT's dividend (3.99%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: STRT's dividend (3.99%) is low compared to the top 25% of dividend payers in the US market (5.71%).


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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (132.1%), STRT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STRT's dividends in 3 years are forecast to be well covered by earnings (27.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Frank Krejci (69yo)

7.58s

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 ($USD646.98K) is about average for companies of similar size in the US market ($USD618.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank Krejci
President7.58yrsUS$646.98k1.13% $593.1k
Patrick Hansen
Senior VP21.17yrsUS$403.87k0.28% $149.6k
Rolando Guillot
Senior Vice President of Operations3.08yrsUS$368.92k0.44% $229.6k
Richard Messina
Vice President of Global Sales & Access Control Products6.5yrsUS$376.05k0.23% $118.6k
Al-Waleed Hamdan
VP of Global Sales & Product Managementno dataUS$313.69k0.12% $65.3k

7.0yrs

Average Tenure

53yo

Average Age

Experienced Management: STRT's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Krejci
President7.58yrsUS$646.98k1.13% $593.1k
Michael Koss
Independent Director25.25yrsUS$104.61k0.25% $134.2k
Thomas Florsheim
Independent Director7.5yrsUS$104.61k0.19% $99.1k
Harold Stratton
Non-Executive Chairman21.17yrsUS$139.61k1.85% $973.0k
David Zimmer
Independent Director13.92yrsUS$109.61k0.22% $115.9k

21.2yrs

Average Tenure

69yo

Average Age

Experienced Board: STRT's board of directors are seasoned and experienced ( 21.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

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$52.650m
  • Shares outstanding: 3.75m
  • 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 Analysis2020/04/04 00:15
End of Day Share Price2020/04/03 00:00
Earnings2019/12/29
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.