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Strattec Security
(NASDAQ:STRT)
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Rating:63Neutral
Price Target:
$77.00
▲(5.83% Upside)
Action:Reiterated
Date:08/27/26
STRT scores as a balanced setup: materially improved financial health (notably a debt-free balance sheet and recovered profitability/margins) is the biggest positive, and valuation is reasonable. These are offset by weak technical momentum (trading well below major moving averages with bearish MACD/RSI) and a cautious FY27 outlook driven by expected production declines at key customers and FX sensitivity.
Positive Factors
Debt-free balance sheet and cash strength
A debt-free structure and substantial cash balance give Strattec resilience through automotive cycles, while positive operating cash flow supports investment, supplier needs and shareholder returns without relying on external financing.
Negative Factors
OEM concentration and production exposure
Strattec’s program-based OEM model makes revenue dependent on vehicle production and a concentrated customer base. Lower output at Ford, Stellantis and GM could pressure volumes, plant utilization and earnings over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet and cash strength
A debt-free structure and substantial cash balance give Strattec resilience through automotive cycles, while positive operating cash flow supports investment, supplier needs and shareholder returns without relying on external financing.
Read all positive factors
Strattec Security Key Performance Indicators (KPIs)
Any
Revenue by Product Group
Breaks down Strattec’s sales across its product lines (for example mechanical locks, electronic access modules, replacement/service parts), showing which products drive revenue and margins. A growing share of higher‑margin electronic or proprietary modules can signal improving profitability and successful technology transitions, while dependence on commodity mechanical parts points to exposure to pricing pressure and auto OEM volume swings. Monitoring product mix helps investors judge revenue durability, margin trends, and risks from changing vehicle technology or customer concentration.
Breaks down Strattec’s sales across its product lines (for example mechanical locks, electronic access modules, replacement/service parts), showing which products drive revenue and margins. A growing share of higher‑margin electronic or proprietary modules can signal improving profitability and successful technology transitions, while dependence on commodity mechanical parts points to exposure to pricing pressure and auto OEM volume swings. Monitoring product mix helps investors judge revenue durability, margin trends, and risks from changing vehicle technology or customer concentration.
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The Fly
The FlyStrattec Security (STRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$302.22M
Dividend Yield3.47%
Average Volume (3M)96.77K
Price to Earnings (P/E)14.7
Beta (1Y)1.13
Revenue Growth2.54%
EPS Growth9.44%
CountryUS
Employees2,654
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)5.07
Shares Outstanding3,985,013
10 Day Avg. Volume117,100
30 Day Avg. Volume96,771
Financial Highlights & Ratios
PEG Ratio1.74
Price to Book (P/B)1.39
Price to Sales (P/S)0.57
P/FCF Ratio8.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$83.00Price Target Upside14.07% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)4.27
Revenue Forecast (FY)$552.96M
Strattec Security Business Overview & Revenue Model
Company Description
Established in 1908 and headquartered in Milwaukee, Wisconsin, Strattec Security Corporation specializes in the design, development, manufacturing, and marketing of automotive access control products. Predominantly operating in North America, thei...
How the Company Makes Money
Strattec primarily makes money by selling automotive access and security components to vehicle manufacturers (OEMs) and, to a lesser extent, to the automotive aftermarket. The core revenue stream is high-volume, program-based supply of locks, latc...
Strattec Security Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call communicated meaningful operational progress and financial improvements — record revenue, margin expansion, stronger adjusted EBITDA, EPS growth, solid cash generation, a debt-free balance sheet and an active capital return plan — all achieved despite several external headwinds. Management acknowledged near-term challenges including softer industry production (especially at its top three customers), foreign exchange pressure, higher transformation and SG&A investments, and the impact of canceled EV programs and discrete tax adjustments. Overall, the company presented a credible path to further margin improvement (targeting 18–20% gross margin and SAE of 10–11% long-term) while remaining cautious on fiscal 2027 volume and FX exposure.Positive Updates
Record Annual Revenue
Fiscal 2026 record revenue of $579.4 million, up 2.5% from $565.1 million in fiscal 2025; pricing contributed ~2% to full-year sales.
Negative Updates
Soft Q4 and Q4 Gross Profit Decline
Fourth quarter sales $151.8 million were essentially flat YoY, but Q4 gross profit fell to $23.6 million from $25.4 million and gross margin to 15.6%, affected by unfavorable foreign exchange and lower tooling gains.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual Revenue
Fiscal 2026 record revenue of $579.4 million, up 2.5% from $565.1 million in fiscal 2025; pricing contributed ~2% to full-year sales.
Read all positive updates
Company Guidance
For fiscal 2027, Strattec expects a challenging auto market with North American production down about 2% (and nearly a 6% decline at its three largest customers), typical Q2 seasonality, and foreign‑exchange headwinds — the peso started the year at ~$16.90 versus last year’s average ~$18 (a return to the 5‑year average of $19.50 would have boosted FY‑26 gross margin by ~100 bps), and a 5% move in USD/MXN could change annual manufacturing costs by roughly $4 million; management targets longer‑term gross margins of 18%–20% (with current FY‑26 margins at 16.5%), longer‑term SAE of ~10%–11% of revenue (near‑term slightly higher), expects a normalized operating cash flow run‑rate of ~$10 million per quarter, plans ~ $12 million of CapEx for the year, and anticipates an effective tax rate of ~24%–25%.Strattec Security Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
84
Very Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 579.39M | 565.07M | 537.77M | 492.95M | 452.26M |
| Gross Profit | 95.36M | 84.58M | 65.47M | 42.15M | 56.02M |
| EBITDA | 41.61M | 40.41M | 37.65M | 10.78M | 28.86M |
| Net Income | 20.60M | 18.68M | 16.31M | -6.67M | 7.02M |
Balance Sheet | |||||
| Total Assets | 387.48M | 391.45M | 364.29M | 340.93M | 319.13M |
| Cash, Cash Equivalents and Short-Term Investments | 108.24M | 84.58M | 25.41M | 20.57M | 8.77M |
| Total Debt | 0.00 | 11.29M | 20.52M | 17.46M | 16.64M |
| Total Liabilities | 121.98M | 145.02M | 138.67M | 129.91M | 99.19M |
| Stockholders Equity | 238.65M | 221.59M | 200.54M | 184.96M | 188.40M |
Cash Flow | |||||
| Free Cash Flow | 38.98M | 64.52M | 2.48M | -7.28M | -3.75M |
| Operating Cash Flow | 46.30M | 71.68M | 12.27M | 10.10M | 10.44M |
| Investing Cash Flow | -5.40M | -7.16M | -7.79M | -118.00K | -14.33M |
| Financing Cash Flow | -16.91M | -4.94M | 72.00K | 1.58M | -1.89M |
Strattec Security Technical Analysis
Negative
72.76
Price Trends
81.04
Negative
78.14
Negative
79.21
Negative
Market Momentum
-2.64
Positive
43.75
Neutral
30.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRT, the sentiment is Negative. The current price of 72.76 is below the 20-day moving average (MA) of 77.32, below the 50-day MA of 81.04, and below the 200-day MA of 79.21, indicating a bearish trend. The MACD of -2.64 indicates Positive momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 30.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STRT.
Strattec Security Risk Analysis
Strattec Security disclosed 26 risk factors in its most recent earnings report. Strattec Security reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Strattec Security Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $162.92M | 2.85 | 13.77% | 19.61% | 17.64% | 42.96% | |
63 Neutral | $302.22M | 14.66 | 8.70% | 3.47% | 2.54% | 9.44% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $366.43M | 34.41 | 2.30% | ― | 3.26% | ― | |
49 Neutral | $228.71M | -53.62 | -1.57% | ― | -0.82% | -353.36% | |
49 Neutral | $213.35M | -1.86 | -59.31% | ― | -13.70% | -264.88% | |
48 Neutral | $102.91M | -0.94 | -118.08% | ― | 41.09% | 9.05% |
* Consumer Cyclical Sector Average
STRT
Strattec Security
74.34
6.96
10.33%
CAAS
China Automotive Systems
5.45
0.86
18.74%
MPAA
Motorcar Parts Of America
11.71
-3.09
-20.88%
SRI
Stoneridge
7.28
-0.92
-11.22%
INVZ
Innoviz Technologies
0.35
-1.52
-81.23%
HLLY
Holley
2.98
-0.69
-18.80%
Strattec Security Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Strattec Security Highlights Strong Fiscal 2026 Results
Positive
Aug 25, 2026
For the fiscal fourth quarter and year ended June 28, 2026, Strattec reported better‑than‑expected quarterly sales of $151.8 million, essentially flat year‑on‑year, and full‑year revenue of $579.4 million. The company...
Business Operations and StrategyStock Buyback
Strattec Security Launches New $40 Million Share Buyback
Positive
May 28, 2026
On May 28, 2026, Strattec Security Corporation announced that its board had authorized a new share repurchase program allowing the company to buy back up to $40 million of its outstanding common stock. The new authorization replaces a prior repurc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.