STRT:NASDAQSTRATTEC SECURITY CORPORATION Analysis
Data as of 2026-05-03 - not real-time
Latest Price
Risk Level: Medium
Executive Summary
Strattec Security (STRT) is trading at $72.6, below its 20‑day (≈$77.8) and 50‑day (≈$79.6) moving averages and also under the 200‑day average (≈$74.4), indicating short‑term weakness. The RSI of 39 suggests the stock is approaching oversold territory, while a bearish MACD histogram reinforces downside momentum, and volume is trending lower, adding to the technical caution. On the fundamentals side, the company posts a modest 5.9% revenue growth, low but improving margins (gross 16.6%, operating 5.8%, profit 4.6%) and a healthy cash pile of $99 M versus $2.5 M of debt, giving it a strong balance sheet. Valuation metrics are attractive – a trailing P/E of 11, price‑to‑book of 1.24 and price‑to‑sales of 0.52, with analysts targeting $92, implying ~27% upside. Recent news highlights cost‑saving initiatives and a “profitability transformation” that have lifted the stock on strong earnings, yet supply‑chain disruptions from an aluminum fire and semiconductor shortages pose near‑term headwinds for OEM customers.
Market Outlook
Short Term
< 1 yearKey Factors
- Technical weakness with price below key moving averages and bearish MACD
- Recent cost‑saving initiatives bolstering earnings
- Supply‑chain uncertainties from aluminum and semiconductor constraints
Medium Term
1–3 yearsKey Factors
- Undervaluation relative to peers (low P/E, P/B, P/S)
- Analyst target price of $92 offering ~27% upside
- Steady revenue growth and improving profitability
Long Term
> 3 yearsKey Factors
- Strong cash position and minimal debt supporting strategic investments
- Secular demand for automotive security and access solutions
- Potential for continued margin expansion as cost‑saving measures take hold
Key Metrics & Analysis
Financial Health
Technical Analysis
Valuation
Risk Assessment
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.