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STRT:NASDAQSTRATTEC SECURITY CORPORATION Analysis

Data as of 2026-05-03 - not real-time

$72.60

Latest Price

7/10Risk

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 year
Neutral
Model confidence: 6/10

Key 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 years
Positive
Model confidence: 8/10

Key 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 years
Positive
Model confidence: 7/10

Key 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

Revenue Growth5.90%
Profit Margin4.63%
P/E Ratio11.0
ROE11.38%
ROA5.90%
Debt/Equity0.95
P/B Ratio1.2
Op. Cash Flow$76.1M
Free Cash Flow$61.4M

Technical Analysis

TrendNeutral
RSI39.0
Support$69.36
Resistance$84.31
MA 20$77.81
MA 50$79.64
MA 200$74.39
MACDBearish
VolumeDecreasing
Fear & Greed Index91.09

Valuation

Fair Value$275.40
Target Price$92.00
Upside/Downside26.72%
GradeUndervalued
TypeBlend

Risk Assessment

Beta1.52
Volatility47.06%
Sector RiskHigh
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

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.