North American light vehicle production volumes (SAAR - Seasonally Adjusted Annual Rate), particularly GM and Ford truck/SUV platforms where content per vehicle is highest
New platform awards and content per vehicle expansion, especially electronic access control systems which carry higher margins than mechanical locks
Raw material costs including steel, zinc die-castings, and semiconductor availability for electronic modules
Joint venture equity income from VAST LLC (Hyundai/Kia exposure) and ADAC-Strattec (Honda/Nissan exposure), which can represent 15-20% of operating income
high - Revenue is directly tied to North American light vehicle production, which exhibits strong cyclicality with GDP growth, consumer confidence, and employment levels. During the 2008-2009 recession, North American production fell 35%, devastating tier-1 suppliers. The company's exposure to trucks and SUVs (higher content per vehicle) provides some cushion during downturns as consumers shift to larger vehicles, but overall volumes remain highly cyclical. Industrial production and durable goods orders are leading indicators for automotive demand.
Rising interest rates negatively impact the business through two channels: (1) higher auto loan rates reduce vehicle affordability and dampen consumer demand, particularly for trucks/SUVs which require larger loans, and (2) increased financing costs for dealer inventory ('floorplan financing') can constrain OEM production schedules. The company carries minimal debt (0.01 D/E ratio), so direct financing cost impact is negligible. However, valuation multiples for low-growth cyclical industrials compress as rates rise and investors rotate to bonds.
Electrification and autonomous vehicle transition may reduce content per vehicle as traditional mechanical locks/keys are replaced by smartphone-based access systems or eliminated entirely in shared autonomous fleets
Shift toward vehicle-as-a-service and declining personal vehicle ownership in urban markets could structurally reduce North American production volumes over the 2030-2040 timeframe
Cybersecurity vulnerabilities in electronic access control systems create product liability and recall risk, particularly as vehicles become more connected
value - The stock trades at 0.7x sales and 5.5x EV/EBITDA with 16.9% FCF yield, attracting deep value investors seeking cyclical recovery plays. Recent 77% one-year return suggests momentum investors have entered following operational improvements. The micro-cap size ($400M market cap) limits institutional ownership to specialized small-cap funds. Dividend yield is likely minimal given capital reinvestment needs, making this unsuitable for income investors. High cyclicality and OEM concentration risk deter growth-at-any-price investors.
Trend
-12.0% vs SMA 50 · -10.1% vs SMA 200
Momentum
Volume distribution is neutral or leaning toward distribution. No compelling squeeze setup based on current money flow data.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
ANALYST ESTIMATES
Analyst consensus estimates · Actuals replace estimates as reported
| Year | Revenue Est. | Rev Gth | EPS Est. | EPS Gth | Range | Analysts |
|---|---|---|---|---|---|---|
FY2024 | $526.7M $524.2M–$529.2M | — | $0.59 | — | ±1% | Low1 |
FY2025 | $560.2M $557.5M–$562.9M | ▲ +6.4% | $4.22 | ▲ +615.3% | ±1% | Low1 |
FY2026(current) | $574.5M $571.8M–$577.3M | ▲ +2.6% | $6.19 | ▲ +46.7% | ±1% | Low1 |
INSTITUTIONAL OWNERSHIP
STRT News
About
strattec security corporation, headquartered in milwaukee, wisconsin, is one of the world's largest producer of automotive locks and keys. strattec designs, develops, manufactures and markets mechanical locks, electronically enhanced locks and keys, and ignition lock housings; access control products, including latches, power sliding door systems, power lift gate systems, power deck lid systems, door handles and related access control products for north american and global automotive customers. strattec ships products to customer locations in the united states, canada, mexico, europe, south america, korea and china, and provides full service aftermarket support. strattec also supplies products for the heavy truck and recreational vehicle markets, as well as precision die castings. strattec's mission is to provide the highest value mechanical, electro-mechanical and electronic security/access control products for the global motor vehicle industry. we will do so in a manner which ensures
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
STRT◀ | $66.91 | +3.90% | $280M | 10.9 | +507.7% | 330.7% | 1500 |
| $264.14 | -1.15% | $2.8T | 31.3 | +1237.8% | 1083.4% | 1521 | |
| $422.24 | -4.75% | $1.6T | 352.3 | -293.1% | 400.1% | 1507 | |
| $297.51 | -2.25% | $296.3B | 20.9 | +324.0% | 859.6% | 1477 | |
| $276.39 | +0.52% | $196.4B | 22.6 | +372.3% | 3185.0% | 1478 | |
| $147.43 | +0.05% | $163.2B | 30.2 | +711.9% | 910.0% | 1494 | |
| $218.42 | -2.32% | $122.3B | 18.3 | +312.2% | 771.2% | 1489 | |
| Sector avg | — | -0.86% | — | 69.5 | +453.2% | 1077.1% | 1495 |