Strattec Security Corporation
Strattec Security Corporation Fundamental Analysis
Strattec Security Corporation (STRT) shows moderate financial fundamentals with a PE ratio of 13.53, profit margin of 4.63%, and ROE of 12.07%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 5.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze STRT's fundamental strength across five key dimensions:
Efficiency Score
WeakSTRT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTRT trades at attractive valuation levels.
Growth Score
ExcellentSTRT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSTRT maintains a strong and stable balance sheet.
Profitability Score
WeakSTRT struggles to sustain strong margins.
Key Financial Metrics
Is STRT Expensive or Cheap?
P/E Ratio
STRT trades at 13.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STRT's PEG of 0.89 indicates potential undervaluation.
Price to Book
The market values Strattec Security Corporation at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.16 times EBITDA. This is generally considered low.
How Well Does STRT Make Money?
Net Profit Margin
For every $100 in sales, Strattec Security Corporation keeps $4.63 as profit after all expenses.
Operating Margin
Core operations generate 5.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.07 in profit for every $100 of shareholder equity.
ROA
Strattec Security Corporation generates $6.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Strattec Security Corporation produces operating cash flow of $78.32M, showing steady but balanced cash generation.
Free Cash Flow
Strattec Security Corporation generates strong free cash flow of $69.75M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.67 in free cash annually.
FCF Yield
STRT converts 17.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How STRT Stacks Against Its Sector Peers
| Metric | STRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.53 | 25.25 | Better (Cheaper) |
| ROE | 12.07% | 1170.00% | Weak |
| Net Margin | 4.63% | 742.00% | Weak |
| Debt/Equity | 0.01 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.61 | 9.19 | Strong Liquidity |
| ROA | 6.92% | -6467.00% (disorted) | Weak |
STRT outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Strattec Security Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.99%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
327.83%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
161.43%
Industry Style: Cyclical, Growth, Discretionary
High Growth