Strattec Security Corporation
- Open
- 73.64
- Day high
- 75.53
- Day low
- 73.62
- Prev close
- 73.07
- Volume
- 43K
- Mkt cap
- $298M
- P/E (TTM)
- 14.8
- EPS (TTM)
- $5.07
- P/B
- 1.2
- P/S
- 0.5
- Yield
- —
- Per share
- —
Strattec Security Corporation (STRT) is a Consumer Cyclical company listed on NASDAQ. The stock is up 9% over the past year.
Strattec Security Corporation (STRT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
STRT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 26, 2026 | $1.36 | $2.06 | +51.5% | $152M | +3.4% |
| May 8, 2026 | $1.14 | $0.90 | -21.1% | $138M | -1.9% |
| Feb 5, 2026 | $0.93 | $1.71 | +83.9% | $138M | -2.0% |
| Oct 30, 2025 | $1.48 | $2.22 | +50.0% | $152M | +15.2% |
| Aug 14, 2025 | $1.07 | $2.06 | +92.5% | $152M | +9.6% |
| May 8, 2025 | $0.95 | $1.50 | +57.9% | $144M | +2.3% |
| Feb 6, 2025 | $0.28 | $0.65 | +132.1% | $130M | -5.4% |
| Aug 8, 2024 | $0.38 | $2.39 | +528.9% | $143M | +1.0% |
| May 9, 2024 | $0.10 | $0.37 | +270.0% | $141M | +8.4% |
| Feb 8, 2024 | $-0.46 | $0.26 | +156.5% | $119M | +7.0% |
| Oct 26, 2023 | $-0.21 | $1.05 | +600.0% | $135M | +7.2% |
| Aug 10, 2023 | $-0.20 | $0.50 | +350.0% | $132M | +5.3% |
STRT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 25, 2026 | Slater Jennifer Lynndirector, officer: President & CEO | Tax | 1,594 | — |
| Aug 25, 2026 | Becker-Varto Cheyofficer: SVP & Chief Commercial Officer | Tax | 248 | — |
| Aug 25, 2026 | Pauli Matthewofficer: SVP & CFO | Tax | 551 | — |
| Jul 6, 2026 | Slater Jennifer Lynndirector, officer: President & CEO | Tax | 5,931 | — |
| May 14, 2026 | LIEBAU FREDERIC JACK JRdirector | Buy | 1,000 | $61.37 |
| May 14, 2026 | Pauli Matthewofficer: SVP & CFO | Buy | 2,000 | $62.53 |
| May 14, 2026 | Slater Jennifer Lynndirector, officer: President & CEO | Buy | 801 | $62.46 |
| May 14, 2026 | Slater Jennifer Lynndirector, officer: President & CEO | Buy | 797 | $62.71 |
| Jan 8, 2026 | Pauli Matthewofficer: SVP & CFO | Tax | 814 | — |
| Nov 19, 2025 | Messina Richard Pofficer: VP & Chief Technical Officer | Sell | 3,000 | $66.35 |
| Oct 28, 2025 | Slater Jennifer Lynndirector, officer: President & CEO | Tax | 2,645 | — |
| Oct 17, 2025 | LIEBAU FREDERIC JACK JRdirector | Grant | 1,243 | $68.38 |
| Oct 17, 2025 | FLORSHEIM THOMAS W JRdirector | Grant | 1,243 | $68.38 |
| Oct 17, 2025 | Chang Tina Mdirector | Grant | 1,243 | $68.38 |
| Oct 17, 2025 | Anversa Matteodirector | Grant | 1,243 | $68.38 |
Source: STRT SEC Form 4 filings, latest Aug 25, 2026. For informational purposes only — not investment advice.
See the full STRT insider & 13F page →Strattec Security Corporation company profile
Overview
Strattec Security Corporation (NASDAQ:STRT) is a Milwaukee-based automotive components manufacturer that has been operating since 1908. The company specializes in designing, developing, and manufacturing automotive access control products, primarily serving the North American market under its VAST Automotive Group brand. Originally founded over a century ago, Strattec has evolved from a traditional lock and key manufacturer into a diversified automotive security and access systems provider. The company went public in 1995 and has established itself as a key supplier to major automotive original equipment manufacturers (OEMs) including Ford, General Motors, and various other automotive brands across North America and internationally.
Business
Strattec operates in the automotive parts manufacturing industry, specifically focusing on vehicle access control and security systems. The automotive parts industry is a critical component of the broader automotive supply chain, providing specialized components that automakers integrate into their vehicles during manufacturing. The company's core business revolves around three main product categories. Power Access Products represent the fastest-growing segment, including sophisticated systems like power sliding side doors, power tailgates, power lift gates, and power deck lid systems. These are the motorized systems that allow vehicle doors and compartments to open and close automatically at the push of a button, commonly found in minivans, SUVs, and luxury vehicles. Engineered Latches constitute another significant product line, encompassing the mechanical and electronic locking mechanisms that secure vehicle doors, hoods, and compartments. These latches are critical safety components that must meet stringent automotive safety standards and provide reliable operation under various weather conditions and usage scenarios. The third category, Keys and Locksets, represents the company's traditional business of mechanical and electronically enhanced locks and keys, including passive entry passive start (PEPS) systems. PEPS technology allows drivers to unlock and start their vehicles without physically inserting a key, using proximity sensors and push-button ignition systems. However, this segment has been experiencing decline as the automotive industry shifts toward more advanced access technologies. Based on recent financial performance, Power Access Products and Engineered Latches are experiencing growth rates of approximately 20-27% year-over-year, while the Keys and Locksets segment continues to decline. The company also manufactures steering column and instrument panel ignition lock housings, door handles, and provides aftermarket support services for its products.
Revenue model
Strattec generates revenue primarily through direct product sales to automotive original equipment manufacturers (OEMs). The company operates under long-term supply contracts with major automakers including Ford, General Motors, Hyundai/Kia, and other vehicle manufacturers. These contracts typically span multiple years and are tied to specific vehicle platforms, providing relatively predictable revenue streams during a vehicle's production lifecycle. The business model is heavily dependent on automotive production volumes, which creates both opportunities and risks. When automakers increase production of popular vehicle models that incorporate Strattec's components, the company benefits from higher sales volumes. Conversely, production cuts or model discontinuations directly impact revenue. The company's financial performance is particularly sensitive to the success of key vehicle platforms like Ford's F-Series pickup trucks, which represent a significant portion of sales. Several factors influence Strattec's profitability margins. Commodity costs for raw materials like steel and aluminum directly impact manufacturing costs, while labor costs in manufacturing locations, particularly Mexico where the company has significant operations, affect overall cost structure. The company recently faced a 20% wage increase in Mexico followed by an additional 12% merit increase, demonstrating how labor inflation can pressure margins. Foreign exchange fluctuations create additional margin variability since the company operates across multiple currencies. Tariff policies have emerged as a significant concern, with management estimating an annual tariff impact of $9-12 million, though they have mitigated approximately 30% of this impact through supply chain adjustments. The company's pricing power varies by product category, with newer, more technologically advanced products like power access systems commanding higher margins than traditional mechanical locks and keys. Management has been actively working to capture improved pricing, with the new Chief Commercial Officer securing $8 million in new annualized pricing improvements through contract renegotiations and extensions.
Competitive moat
Strattec's competitive moat is moderate but faces ongoing challenges from industry dynamics and technological shifts. The company's primary advantages stem from its established relationships with major OEMs and the high switching costs associated with automotive supply contracts. Once an automaker designs a vehicle platform around Strattec's components, changing suppliers requires significant re-engineering, testing, and certification processes that can take years and cost millions of dollars. The company's technical expertise in automotive access control systems, developed over more than a century of operation, provides some competitive advantage. Strattec's experience in meeting stringent automotive safety and durability standards creates barriers for new entrants who must invest heavily in testing and certification processes. However, the company's moat is being eroded by several factors. The shift toward electric vehicles and advanced automotive technologies is changing the competitive landscape, potentially allowing new technology companies to enter the market with innovative solutions. Traditional mechanical systems are being replaced by electronic and software-based access control systems, where Strattec may not have the same competitive advantages. Consolidation among automotive suppliers is creating larger, more diversified competitors with greater resources and broader product portfolios. Additionally, the declining Keys and Locksets segment demonstrates how technological obsolescence can quickly erode market position in specific product categories. The company's geographic concentration in North America also limits its moat compared to global competitors who can leverage scale across multiple regions. While Strattec exports to Europe, South America, Korea, China, and India, these international sales represent a smaller portion of total revenue, limiting the company's ability to diversify risk across different automotive markets.
Risks & safety
Strattec demonstrates a solid margin of safety from a financial stability perspective, though valuation metrics suggest limited upside potential. • Strong liquidity position: $62.1 million in cash with $47 million available under revolving credit facilities, providing substantial financial flexibility • Minimal debt burden: Debt-to-equity ratio of effectively zero, eliminating solvency risk • Positive cash generation: Strong operating cash flow of $20.7 million in Q3 2025, with free cash flow of $19.5 million • Healthy current ratio: 2.33x current ratio indicates strong short-term liquidity • Attractive valuation metrics: Trading at 7.4x P/E ratio and 0.76x price-to-book ratio, suggesting the stock is undervalued relative to earnings and book value • Low EV/EBITDA: 3.4x enterprise value to EBITDA multiple indicates reasonable valuation relative to cash generation • Graham number analysis: Current price of $39.92 is near the Graham number of $39.60, suggesting fair valuation • Operational risks: Exposure to automotive production cycles, tariff impacts, and technological disruption in the access control industry • Geographic concentration: Heavy dependence on North American automotive market limits diversification benefits
Recent development
Over the past few years, Strattec has undergone significant strategic transformation under new leadership. The company has prioritized operational efficiency improvements through facility restructuring, including the restructuring of Mexico operations that generated approximately $5 million in annualized savings and the Milwaukee facility restructuring that achieved $1.2 million in annualized savings. The company has also listed a 350,000 square foot facility for sale, recognizing it had twice the required manufacturing space. Leadership changes have been central to the transformation, with the appointment of Linda Redmann as Chief People Officer and Shay Bardo as Chief Commercial Officer. The new commercial leadership has been particularly effective, capturing $8 million in new annualized pricing through contract renegotiations and extensions with OEM customers. The company has focused on product portfolio optimization, reducing preproduction tooling cost balances by 50% since the fiscal year start and emphasizing profitable, differentiated products. Management has prioritized growth in higher-value segments like Power Access Products, which showed 27% year-over-year growth, and Engineered Latches, which grew 20% year-over-year, while managing the decline in the legacy Keys and Locksets business. Supply chain and tariff management has become a critical focus area, with the establishment of a dedicated tariff task force and reassessment of global supply chain and logistics processes. The company has achieved over 90% USMCA compliance for U.S. sales volume and has mitigated approximately 30% of the estimated $9-12 million annual tariff impact through operational adjustments. Investment in productivity tools and IT infrastructure represents another key development area, as management seeks to modernize operational processes and improve efficiency across the organization.
STRT company profile · for informational purposes only — not investment advice.
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