Strattec Security
Market Cap
US$52.6m
Last Updated
2020/04/04 00:15 UTC
Data Sources
Company Financials +
Executive Summary
Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST brand primarily in the United States.
Rewards
Risk Analysis
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
| STRT | Industry | Market | |
|---|---|---|---|
| 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
1 day ago | Simply Wall St
Downgrade: The Latest Revenue And EPS Forecasts For Strattec Security Corporation (NASDAQ:STRT)4 weeks ago | Simply Wall St
We Wouldn't Be Too Quick To Buy Strattec Security Corporation (NASDAQ:STRT) Before It Goes Ex-Dividend1 month ago | Simply Wall St
Here's Why Strattec Security (NASDAQ:STRT) Has A Meaningful Debt BurdenValuation
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$646,983
Compensation
Mr. Frank Joseph Krejci has been the Chief Executive Officer of STRATTEC Security Corporation since September 1, 2012 and has been its President since 2010. Mr. Krejci has been the President of Wisconsin FÂ ...
CEO Compensation Analysis
Compensation vs Market: Frank's total compensation ($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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.58yrs | US$646.98k | 1.13% $593.1k | |
| Senior VP | 21.17yrs | US$403.87k | 0.28% $149.6k | |
| Senior Vice President of Operations | 3.08yrs | US$368.92k | 0.44% $229.6k | |
| Vice President of Global Sales & Access Control Products | 6.5yrs | US$376.05k | 0.23% $118.6k | |
| VP of Global Sales & Product Management | no data | US$313.69k | 0.12% $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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.58yrs | US$646.98k | 1.13% $593.1k | |
| Independent Director | 25.25yrs | US$104.61k | 0.25% $134.2k | |
| Independent Director | 7.5yrs | US$104.61k | 0.19% $99.1k | |
| Non-Executive Chairman | 21.17yrs | US$139.61k | 1.85% $973.0k | |
| Independent Director | 13.92yrs | US$109.61k | 0.22% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STRT | NasdaqGM (Nasdaq Global Market) | Yes | Common Stock | US | USD | Feb 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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 00:15 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/29 |
| Annual Earnings | 2019/06/30 |
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.