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

Fundamentals

Adequate balance sheet and overvalued.


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


Market Performance


7 Day Return

0.05%

STRT

2.6%

US Auto Components

1.0%

US Market


1 Year Return

-36.5%

STRT

-3.6%

US Auto Components

8.0%

US Market

Return vs Industry: STRT underperformed the US Auto Components industry which returned -3.6% over the past year.

Return vs Market: STRT underperformed the US Market which returned 8% over the past year.


Shareholder returns

STRTIndustryMarket
7 Day0.05%2.6%1.0%
30 Day-6.6%3.1%-0.07%
90 Day-4.6%-1.3%-1.0%
1 Year-35.1%-36.5%-2.1%-3.6%10.4%8.0%
3 Year-39.3%-42.4%11.7%0.1%46.2%36.7%
5 Year-78.3%-79.8%20.1%3.5%64.3%46.2%

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?

0.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: STRT ($20.2) is trading above our estimate of fair value ($5.75)

Significantly Below Fair Value: STRT is trading above our estimate of fair value.


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 (1.2x).


Next Steps

Future Growth

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

37.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: STRT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: STRT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if STRT's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if STRT's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if STRT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Strattec Security performed over the past 5 years?

-43.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STRT is unprofitable, and losses have increased over the past 5 years at a rate of -43.8% 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 (8.1%).


Return on Equity

High ROE: STRT has a negative Return on Equity (-6.76%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: STRT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: STRT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Strattec Security's financial position?


Financial Position Analysis

Short Term Liabilities: STRT's short term assets ($156.6M) exceeds its short term liabilities ($79.3M)

Long Term Liabilities: STRT's short term assets (156.6M) exceeds its long term liabilities (45.7M)


Debt to Equity History and Analysis

Debt Level: STRT's debt to equity ratio (22.4%) is considered satisfactory

Reducing Debt: STRT's debt to equity ratio has increased from 1.9% to 22.4% over the past 5 years.

Debt Coverage: STRT's debt is well covered by operating cash flow (71.3%).

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 3.729330x debt).


Next Steps

Dividend

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

2.77%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Strattec Security before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STRT's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: STRT's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: STRT's dividend payments have been volatile in the past 10 years.

Growing Dividend: STRT's dividend payments have fallen over the past 10 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?

6.5yrs

Average management tenure


CEO

Frank Krejci (69yo)

7.1yrs

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 ($USD646.98K) is about average for companies of similar size in the US market ($USD509.77K).

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


Management Age and Tenure

6.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: STRT's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

20.7yrs

Average Tenure

69yo

Average Age

Experienced Board: STRT's board of directors are seasoned and experienced ( 20.7 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$559,25129 Mar 19
GAMCO Investors, Inc.
EntityCompany
Shares17,989
Max PriceUS$34.61
BuyUS$53,72429 Mar 19
Teton Advisors, Inc
EntityCompany
Shares1,747
Max PriceUS$32.50
SellUS$112,20711 Feb 19
Harold Stratton
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares3,500
Max PriceUS$32.06

Ownership Breakdown


Management Team

  • Pat Hansen (60yo)

    Senior VP

    • Tenure: 20.7yrs
    • Compensation: US$403.87k
  • Frank Krejci (69yo)

    President

    • Tenure: 7.1yrs
    • Compensation: US$646.98k
  • Rolando Guillot (51yo)

    Senior Vice President of Operations

    • Tenure: 2.6yrs
    • Compensation: US$368.92k
  • Richard Messina (53yo)

    Vice President of Global Sales & Access Control Products

    • Tenure: 6yrs
    • Compensation: US$376.05k

Board Members

  • Michael Koss (65yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$104.61k
  • Thomas Florsheim (61yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$104.61k
  • Harold Stratton (71yo)

    Non-Executive Chairman

    • Tenure: 20.7yrs
    • Compensation: US$139.61k
  • David Zimmer (73yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$109.61k
  • Frank Krejci (69yo)

    President

    • Tenure: 7.1yrs
    • 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$76.894m
  • Shares outstanding: 3.81m
  • 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 ke ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:45
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.