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Strattec Security (STRT) AI Stock Analysis
Strattec Security
(NASDAQ:STRT)
STRT’s score is primarily supported by strong financial stability (no meaningful debt) and ongoing cash generation alongside recovered profitability. Offsetting this are weak technicals (below key longer-term moving averages with negative MACD) and a mixed near-term outlook from management, including margin headwinds tied to lower expected automotive production and elevated expenses. Valuation is fair at ~15x earnings but without dividend support.
Strattec Security Key Performance Indicators (KPIs)
Revenue by Product GroupBreaks 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.
Strattec’s product mix is becoming more concentrated in Power Access Solutions and Door Handles & Exterior Trim, which have sustained the company’s recovery despite softer auto production. The sharp recent rebound in Keys & Locksets is a positive mix signal, while Latches and Aftermarket & Service remain comparatively stable and User Interface Controls have yet to regain their prior peak. Management’s pricing, restructuring, and automation initiatives support margin expansion, but declining volumes at major North American customers and FX pressure could challenge momentum in fiscal 2027.
The FlyStrattec Security (STRT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $258.46M
- Dividend Yield
- ―
- Average Volume (3M)
- 77.67K
- Price to Earnings (P/E)
- 15.3
- Beta (1Y)
- 1.17
- Revenue Growth
- -0.73%
- EPS Growth
- -28.01%
- Country
- US
- Employees
- 2,654
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Auto - Parts
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, their s...
Strattec Security Earnings Call Summary
The call conveyed a mixed outlook. Management highlighted sequential improvement in gross margin and adjusted EBITDA, substantial restructuring savings, strong cash generation, a debt-free balance sheet, continued investment, and strategic growth initiatives. However, these positives were offset by year-over-year declines in sales, gross profit, net income, and adjusted EBITDA, lower expected automotive production, a fiscal-year gross-margin outlook of 15%-16%, foreign currency and supply chain pressures, and elevated near-term SAE expenses. The company appears to be making operational progress while operating in a challenging automotive environment.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For fiscal 2027, current third-party forecasts indicate about a 2% decline in North American automotive production, including production at the Detroit Three, down nearly 6%, and the company expects its second quarter to be similar to its expectations for the year. Lower volume is expected to be a headwind to gross margin for the balance of the fiscal year, with material cost inflation being offset by the benefit of foreign currency exchange based on what we are seeing today; gross margin should be in the range of 15%-16% for the year, with a target gross margin of 18%-20% in the long term. Excluding unusual items, SAE costs are expected to be at a quarterly run rate of $16.5 million-$17 million in fiscal 2027, while longer term SAE expenses are expected to run at 10%-11% of sales. The normalized fiscal 2027 effective tax rate is expected to be in the range of 23%-25%, normal operating cash flow run rate is expected at approximately $10 million per quarter, subject to working capital variability, and first quarter cash generation keeps the company on track for approximately $40 million for the fiscal year.
Strattec Security Financial Statement Overview
Summary
Financials are supported by a very strong, low-risk balance sheet (essentially no debt and stable-to-rising equity) and solid cash generation (TTM operating cash flow ~$45.7M; free cash flow ~$38.8M). Profitability has recovered from the 2023 loss year, but net margins remain thin (~2.9%) and recent momentum is mixed, with sharply negative TTM revenue growth and uneven/free-cash-flow volatility.
Income Statement
62PositiveBalance Sheet
84Very PositiveCash Flow
69Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 574.19M | 579.39M | 565.07M | 537.77M | 492.95M | 452.26M |
| Gross Profit | 93.34M | 95.36M | 84.58M | 65.47M | 42.15M | 56.02M |
| EBITDA | 36.69M | 41.61M | 40.41M | 37.65M | 10.78M | 28.86M |
| Net Income | 16.90M | 20.60M | 18.68M | 16.31M | -6.67M | 7.02M |
Balance Sheet | ||||||
| Total Assets | 381.54M | 387.48M | 391.45M | 364.29M | 340.93M | 319.13M |
| Cash, Cash Equivalents and Short-Term Investments | 111.77M | 108.24M | 84.58M | 25.41M | 20.57M | 8.77M |
| Total Debt | 0 | 0 | 11.29M | 20.52M | 17.46M | 16.64M |
| Total Liabilities | 116.48M | 121.98M | 145.02M | 138.67M | 129.91M | 99.19M |
| Stockholders Equity | 237.86M | 238.65M | 221.59M | 200.54M | 184.96M | 188.40M |
Cash Flow | ||||||
| Free Cash Flow | 38.76M | 38.98M | 64.52M | 2.48M | -7.28M | -3.75M |
| Operating Cash Flow | 45.74M | 46.30M | 71.68M | 12.27M | 10.10M | 10.44M |
| Investing Cash Flow | -5.05M | -5.40M | -7.16M | -7.79M | -118.00K | -14.33M |
| Financing Cash Flow | -19.00M | -16.91M | -4.94M | 72.00K | 1.58M | -1.89M |
Strattec Security Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRT, the sentiment is Neutral. The current price of 64.14 is above the 20-day moving average (MA) of 62.47, below the 50-day MA of 66.48, and below the 200-day MA of 76.63, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 52.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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.
Latest Risks Added
3 New RisksStrattec Security Peers Comparison
Overall Rating
CAAS86Outperform- STRT66Neutral
HLLY61Neutral
MPAA48Neutral
INVZ46Neutral
SRI44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CAAS | 86Outperform | $126.42M | 2.25 | 13.77% | ― | 17.64% | 42.96% |
| STRT | 66Neutral | $255.92M | 15.31 | 7.09% | ― | -0.73% | -28.01% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| HLLY | 61Neutral | $324.38M | 33.49 | 2.30% | ― | 3.26% | ― |
| MPAA | 48Neutral | $196.72M | -48.44 | -1.57% | ― | -0.82% | -353.36% |
| INVZ | 46Neutral | $64.00M | -0.57 | -118.08% | ― | 41.09% | 9.05% |
| SRI | 44Neutral | $165.15M | -1.30 | -59.31% | ― | -13.70% | -264.88% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| STRT | Strattec Security | 64.14 | -2.97 | -4.43% | |
| CAAS | China Automotive | 4.29 | 0.14 | 3.37% | |
| MPAA | Motorcar Parts Of America | 10.58 | -6.80 | -39.13% | |
| SRI | Stoneridge | 5.73 | -0.44 | -7.13% | |
| INVZ | Innoviz Technologies Ltd. | 0.21 | -1.45 | -87.13% | |
| HLLY | Holley Inc. | 2.90 | -0.72 | -19.89% |
Strattec Security Corporate Events
Strattec Security Highlights Strong Liquidity Amid Mixed Quarter
NeutralOn October 29, 2026, Strattec reported results for the fiscal first quarter ended September 27, 2026, highlighting continued strong cash generation with $10.8 million provided by operating activities and a debt-free balance sheet holding $111.8 milli...
Strattec Security Shareholders Back Board and Compensation
PositiveOn October 13, 2026, Strattec Security Corporation held its 2026 Annual Meeting of Shareholders, where approximately 89.5% of outstanding common shares were represented, establishing a strong quorum and reaffirming shareholder engagement. Shareholder...
Strattec Security Highlights Strong Fiscal 2026 Results
PositiveFor 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...
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.
Date of analysis: Oct 30, 2026