Strattec Security Corp (STRT) stock analysis

P/E above its 5-year median

Strattec Security's P/E of 15.1 is above its own 5-year median of 13.1.

P/E below the industry

Strattec Security's P/E of 15.1 is below the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA below its 5-year median

Strattec Security's EV/EBITDA of 7.4 is below its 5-year median of 9.3.

P/B below the industry

Strattec Security's price-to-book of 1.06 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading below fair value

The share price of $62.29 is below our fair value estimate of $75.15.

Margin of safety under 20%

The price is 17.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew -28.1% over the last twelve months, against a 5-year average of -1.8% a year.

Growing slower than the industry

Revenue grew -0.7% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 16.3% over the last twelve months, against 15.9% a year earlier.

Return on equity under 15%

Return on equity was 7.2% over the last twelve months and averaged 5.3% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Strattec Security's return on equity of 7.2% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings shrank over 5 years

Net income shrank 1.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 2.9% over the last twelve months, against a 5-year average of 2.0%.

Net margin above the industry

Strattec Security's net margin of 2.9% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

No debt

Strattec Security has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 93.7 times.

Short-term assets cover short-term debts

Current assets are 3.02 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.69; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Strattec Security has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.