NasdaqGM:STRT

Stock Analysis Report

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Executive Summary

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. More Details


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

0.4%

STRT

-0.2%

US Auto Components

-2.4%

US Market


1 Year Return

14.2%

STRT

4.0%

US Auto Components

18.2%

US Market

Return vs Industry: STRT exceeded the US Auto Components industry which returned 5% over the past year.

Return vs Market: STRT underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

STRTIndustryMarket
7 Day0.4%-0.2%-2.4%
30 Day5.6%9.5%4.2%
90 Day-1.5%14.4%6.3%
1 Year15.8%14.2%5.0%4.0%20.9%18.2%
3 Year-48.6%-51.1%-11.9%-21.4%41.2%31.8%
5 Year-60.4%-63.4%19.4%0.3%84.8%63.9%

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 ($22.4) is trading below our estimate of fair value ($45.41)

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 US 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 (0.6x) compared to the US Auto Components industry average (1.9x).


Next Steps

Future Growth

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

12.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if STRT's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if STRT's earnings are forecast to grow faster than the US market

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

Revenue vs Market: STRT's revenue (12.9% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: STRT's revenue (12.9% 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 (11.2%).


Next Steps

Past Performance

How has Strattec Security performed over the past 5 years?

-48.1%

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 48.1% 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 (-18.5%).


Return on Equity

High ROE: STRT has a negative Return on Equity (-3.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is Strattec Security's financial position?


Financial Position Analysis

Short Term Liabilities: STRT's short term assets ($125.4M) exceed its short term liabilities ($48.1M).

Long Term Liabilities: STRT's short term assets ($125.4M) exceed its long term liabilities ($42.0M).


Debt to Equity History and Analysis

Debt Level: STRT's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: STRT's debt to equity ratio has increased from 6.5% to 19.9% over the past 5 years.

Debt Coverage: STRT's debt is well covered by operating cash flow (72.6%).

Interest Coverage: Insufficient data to determine if STRT's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate STRT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STRT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STRT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STRT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: STRT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STRT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Frank Krejci (70 yo)

8.08yrs

Tenure

US$561,502

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 ($USD561.50K) is about average for companies of similar size in the US market ($USD585.94K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank Krejci
President8.08yrsUS$561.50k1.23%
$ 1.1m
Patrick Hansen
Senior VP21.67yrsUS$381.76k0.36%
$ 312.5k
Al-Waleed Hamdan
VP of Global Sales & Product Management0.75yrUS$350.24k0.19%
$ 164.6k
Rolando Guillot
Senior Vice President of Operations3.58yrsUS$368.92k0.51%
$ 439.9k
Richard Messina
Vice President of Global Sales & Access Control Products7yrsUS$376.05k0.26%
$ 227.1k

7.0yrs

Average Tenure

54yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Frank Krejci
President8.08yrsUS$561.50k1.23%
$ 1.1m
Michael Koss
Independent Director25.75yrsUS$109.28k0.30%
$ 261.0k
Thomas Florsheim
Independent Director8yrsUS$109.28k0.24%
$ 205.0k
Harold Stratton
Non-Executive Chairman21.67yrsUS$98.28k1.85%
$ 1.6m
David Zimmer
Independent Director14.42yrsUS$114.28k0.27%
$ 231.8k

21.7yrs

Average Tenure

70yo

Average Age

Experienced Board: STRT's board of directors are seasoned and experienced ( 21.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STRT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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$86.454m
  • Shares outstanding: 3.86m
  • 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 Automotive Group brand primarily in North America. The company offers mechanical ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 01:08
End of Day Share Price2020/10/19 00:00
Earnings2020/06/28
Annual Earnings2020/06/28


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.