Strattec Security Corporation (STRT) AI Stock Analysis
STRT AI stock analysis summary
AI ResearchStrattec Security Corporation designs and manufactures automotive access control products, locks, and power-operated systems. Fiscal 2026 revenue grew 2.5% to $579.4M with net income of $20.6M and $39.0M in free cash flow. In the latest quarter, quarterly earnings declined 52.4% year-over-year while the stock trades down 20.4% year-to-date.
- Market cap
- $241.0M
- Revenue (TTM)
- $579.4M
- P/E
- 12.1x fwd 15.8x
- 1Y return
- -6.3% S&P 500 16.8%
- Avg. target
- $82.00 35.4% vs last close
Bull case
- Strattec produced $39.0M in free cash flow in FY2026 while ending the year with $108.2M in cash and short-term investments.
- Gross margin improved steadily from 8.6% in FY2023 to 16.5% in FY2026.
- The stock trades at an EV/EBITDA of 3.4x, well below the US-listed Consumer Cyclical median of 11.1x.
Bear case
- In the latest quarter ended June 30, 2026, quarterly earnings fell 52.4% year-over-year on a 0.1% revenue decline.
- Analyst estimates model a 29.1% drop in EPS for the fiscal year ending June 30, 2027.
- The stock is down 20.4% year-to-date and sits 22.0% below its 200-day moving average.
What Strattec Security does
Strattec Security Corporation specializes in the design, development, manufacturing, and marketing of automotive access control products, primarily under the VAST Automotive Group brand for North America. Its product portfolio includes mechanical and electronically enhanced locks and keys, passive entry passive start systems, ignition lock housings, latches, power-operated sliding side doors, tailgates, lift gates, and deck lids. The company also produces door handles and offers full-service and aftermarket support. Strattec serves automotive and light truck original equipment manufacturers, transportation manufacturers, wholesale distributors, and parts marketers, exporting globally to Europe, South America, Korea, China, and India.
Growth and profitability
Strattec grew revenue from $452.3M in FY2022 to $579.4M in FY2026, delivering a 5-year revenue CAGR of 3.6%. Gross margin expanded from 12.4% in FY2022 to 16.5% in FY2026, while operating margin rose to 4.6%. Net income reached $20.6M in FY2026, up from -$6.7M in FY2023. Diluted EPS was $6.89 in FY2026. For the latest quarter ended June 30, 2026, quarterly revenue fell 0.1% year-over-year and quarterly earnings decreased 52.4%.
Balance sheet and cash flow
As of June 30, 2026, Strattec held $108.2M in cash and short-term investments, with total assets of $387.5M and shareholders' equity of $238.6M. Liquidity was supported by a current ratio of 2.90. In FY2026, the company generated operating cash flow of $46.3M and free cash flow of $39.0M. Capital expenditures totaled $7.3M, and Strattec directed $7.4M toward share buybacks.
Valuation and performance
Strattec's trailing P/E is 12.1x, below the 18.0x median of its US-listed Consumer Cyclical peers. Its forward P/E of 15.8x stands above the peer median of 14.1x. The company's EV/EBITDA of 3.4x and price-to-sales ratio of 0.4x compare to peer medians of 11.1x and 0.7x, respectively. The stock's 1-year return of -6.3% lagged the S&P 500 (SPY) return of 16.8%, and its 5-year return of 54.3% trailed the index's 83.0% gain.
What analysts expect
Strattec is covered by one analyst with a Hold rating. The mean price target is $82.00, representing 35.4% above the last close of $60.58. For the current fiscal year ending June 30, 2027, consensus estimates forecast revenue of $557.5M and EPS of $4.88, down 29.1%. Strattec has exceeded EPS expectations in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.
Key risks and what to watch
- Short interest stands at 8.8% of the float, reflecting market skepticism.
- A beta of 1.23 indicates higher price volatility than the broader equity market.
- Trailing twelve-month operating margin is just 1.2%, leaving limited cushion against cost pressures.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this STRT AI stock analysis
This page is an AI-written research summary of Strattec Security Corporation (STRT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: STRT income statement, STRT balance sheet, STRT key metrics, STRT analyst forecast, STRT chart. See the STRT stock overview for the latest quote and news.
STRT AI stock analysis FAQ
What is Strattec Security Corporation's current valuation?
Strattec trades at a trailing P/E of 12.1x, a forward P/E of 15.8x, and an EV/EBITDA of 3.4x, with a market capitalization of $241.0M.
Does Strattec Security Corporation pay a dividend?
Strattec does not currently pay a dividend based on the latest financial disclosures.
What do analysts expect for Strattec's upcoming fiscal year?
For the fiscal year ending June 30, 2027, the consensus estimate anticipates revenue of $557.5M and EPS of $4.88, which represents a 29.1% decline in earnings.
How strong is Strattec's balance sheet?
As of June 30, 2026, the company held $108.2M in cash and short-term investments, had no net debt implied by its $162.5M enterprise value versus its $241.0M market cap, and carried a current ratio of 2.90.