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olivLaw · US equity research

Strattec Security Corporation STRT

Motor Vehicle Parts & Accessories · SIC 3714 · Vertical: Motor Vehicle Parts & Accessories (SIC 3714)

64.14USD+0.99% · 1 dayClose 04 Nov 2026

Strattec designs and delivers access solutions for vehicles, including locks, digital keys, power door systems and latches, sold mainly to North American automakers. Net sales reached 579.4 million USD in fiscal 2026, and gross margin expanded by 150 basis points, making the company's transformation relevant for investors in an uncertain auto market.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Strattec Security Corporation (STRT) stock was 64.14 USD (+0.99% on the day), with market capitalisation 258.5 m USD, P/E 15.6 on diluted EPS of 4.12 USD over the last 12 months, dividend yield 0.65%, beta 1.26, 52-week range 59.91–90.91 USD. Latest reported quarter (Q1 2027): revenue of 147.2 m USD (−3.4% YoY), net income of 4.8 m USD (−43.3% YoY), diluted EPS 1.19 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
258.5 m USD
shares as of 23 Oct 2026
P/E (TTM)
15.6
Diluted EPS TTM 4.12 · TTM to 27 Sept 2026
E/P (TTM)
6.42%
TTM to 27 Sept 2026
Dividend yield
0.65%
DPS 12m 0.42
Beta (2y)
1.26
Volatility (1y) 45%
52-week range
59.9190.91

Price history

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Technical reading

RSI (14)
50.0
neutral
Bollinger (20, 2)
59.43 – 65.51
in the upper half of the band · %B 0.78 · band width 9.7%
SMA 50 / 200
66.48 / 76.63
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.88 / -1.52
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−2.7%−1.1%−1.6 pp—
3 months−27.9%−0.5%−27.4 pp—
6 months−15.4%+4.4%−19.8 pp—
Year to date−15.8%+12.3%−28.1 pp—
1 year+2.5%+13.5%−11.1 pp−10.2%
3 years+181.9%+76.4%+105.5 pp−3.9%
5 years+55.3%+63.7%−8.4 pp—
Max drawdown (1y)
−34.1%
25 Feb 2026 → 21 Oct 2026
Max drawdown (5y)
−61.4%
17 Nov 2021 → 15 May 2023
Compound annual growth (5y)
+9.2%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2027 · 27 Sept 2026

Revenue
147.2 m USD
−3.4% YoY
Net income
4.8 m USD
−43.3% YoY
Diluted EPS
1.19
−42.5% YoY
net / operating
3.3% / 4.4%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27
Revenue129.9 m144.1 m152.0 m152.4 m137.5 m137.6 m151.8 m147.2 m
Cost of revenue112.8 m121.0 m126.6 m126.1 m114.8 m115.0 m128.2 m122.9 m
Gross profit17.2 m23.1 m25.4 m26.3 m22.7 m22.7 m23.6 m24.3 m
Operating income2.1 m7.1 m8.5 m10.4 m4.9 m5.0 m6.2 m6.4 m
Interest expense257.0 k243.0 k212.0 k156.0 k96.0 k70.0 k37.0 k37.0 k
Pre-tax income1.8 m7.4 m10.2 m10.9 m7.3 m5.1 m9.6 m7.2 m
Income tax405.0 k1.6 m2.2 m2.4 m1.7 m1.3 m6.0 m1.9 m
Net income1.3 m5.4 m8.3 m8.5 m4.9 m3.2 m3.9 m4.8 m
Diluted EPS0.321.322.01 ≈2.071.200.780.95 ≈1.19
Operating cash flow9.4 m ≈20.7 m ≈30.2 m11.3 m13.9 m ≈11.4 m ≈9.7 m10.8 m
Capex917.0 k ≈1.2 m ≈3.0 m1.5 m2.6 m ≈1.8 m ≈1.4 m1.2 m
Share repurchases———0———5.0 m

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 50 percentile of its own 26-quarter history (min 6.1, median 15.7, max 478.3; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue487.0 m385.3 m485.3 m452.3 m492.9 m537.8 m565.1 m579.4 m
Revenue YoY+10.9%−20.9%+26.0%−6.8%+9.0%+9.1%+5.1%+2.5%
Net income-17.0 m-7.6 m22.5 m7.0 m-6.7 m16.3 m18.7 m20.6 m
Net income YoY−238.6%unavailableunavailable−68.9%−195.1%unavailable+14.5%+10.2%
Diluted EPS-4.63-2.045.851.79-1.704.074.585.00
Diluted EPS YoY−239.5%unavailableunavailable−69.4%−195.0%unavailable+12.5%+9.2%
net %-3.5%-2.0%4.6%1.6%-1.4%3.0%3.3%3.6%
Free cash flow12.5 m13.0 m26.2 m-3.8 m-7.3 m2.5 m64.5 m39.0 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 28 Jun 2026

Cash
108.2 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
265.5 m USD
Total assets
387.5 m USD
Debt / equity
unavailable
Current ratio
2.90x
ROE
8.0%
ROA
5.3%
FCF margin
6.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
537.8 m
2025
565.1 m
2026
579.4 m

SEC (XBRL)· 28 Aug 2026verified

Cost of revenue
2024
472.3 m
2025
480.5 m
2026
484.0 m

SEC (XBRL)· 28 Aug 2026verified

Gross profit
2024
65.5 m
2025
84.6 m
2026
95.4 m

SEC (XBRL)· 28 Aug 2026verified

Research & development
2024
14.8 m
2025
21.7 m
2026
21.8 m

SEC (XBRL)· 28 Aug 2026verified

Operating income
2024
17.8 m
2025
22.8 m
2026
26.5 m

SEC (XBRL)· 28 Aug 2026verified

Interest expense
2024
900.0 k
2025
1.0 m
2026
359.0 k

SEC (XBRL)· 28 Aug 2026verified

Pre-tax income
2024
20.2 m
2025
24.6 m
2026
33.0 m

SEC (XBRL)· 28 Aug 2026verified

Income tax
2024
3.8 m
2025
5.7 m
2026
11.3 m

SEC (XBRL)· 28 Aug 2026verified

Net income
2024
16.3 m
2025
18.7 m
2026
20.6 m

SEC (XBRL)· 28 Aug 2026verified

Diluted EPS
2024
4.07
2025
4.58
2026
5.00

SEC (XBRL)· 28 Aug 2026verified

Weighted average diluted shares
2024
4.0 m
2025
4.1 m
2026
4.1 m

SEC (XBRL)· 28 Aug 2026verified

Balance sheet · USD

Cash
2024
25.4 m
2025
84.6 m
2026
108.2 m

SEC (XBRL)· 28 Aug 2026verified

Inventories
2024
81.6 m
2025
64.7 m
2026
64.3 m

SEC (XBRL)· 28 Aug 2026verified

Current assets
2024
253.8 m
2025
290.1 m
2026
296.3 m

SEC (XBRL)· 28 Aug 2026verified

Property, plant & equipment, net
2024
86.2 m
2025
77.4 m
2026
69.8 m

SEC (XBRL)· 28 Aug 2026verified

Total assets
2024
364.3 m
2025
391.5 m
2026
387.5 m

SEC (XBRL)· 28 Aug 2026verified

Accounts payable
2024
54.9 m
2025
65.8 m
2026
55.0 m

SEC (XBRL)· 28 Aug 2026verified

Current liabilities
2024
118.3 m
2025
119.4 m
2026
102.2 m

SEC (XBRL)· 28 Aug 2026verified

Total liabilities
2024
138.7 m
2025
145.0 m
2026
122.0 m

SEC (XBRL)· 28 Aug 2026verified

Equity
2024
225.6 m
2025
246.4 m
2026
265.5 m

SEC (XBRL)· 28 Aug 2026verified

Cash flow · USD

Operating cash flow
2024
12.3 m
2025
71.7 m
2026
46.3 m

SEC (XBRL)· 28 Aug 2026verified

Capex
2024
9.8 m
2025
7.2 m
2026
7.3 m

SEC (XBRL)· 28 Aug 2026verified

Free cash flow
2024
2.5 m ≈
2025
64.5 m ≈
2026
39.0 m ≈

SEC (XBRL)· 28 Aug 2026derived

Investing cash flow
2024
-7.8 m
2025
-7.2 m
2026
-5.4 m

SEC (XBRL)· 28 Aug 2026verified

Financing cash flow
2024
72.0 k
2025
-4.9 m
2026
-16.9 m

SEC (XBRL)· 28 Aug 2026verified

Share repurchases
2024
0
2025
0
2026
7.4 m

SEC (XBRL)· 28 Aug 2026verified

Computed indicators

Growth

Revenue growth (YoY)
2.5%
computed by olivLawFY 2026
Revenue CAGR 3Y
5.5%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
3.6%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
16.4%
computed by olivLawFY 2026
Net income growth (YoY)
10.2%
computed by olivLawFY 2026
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
-1.8%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
9.2%
computed by olivLawFY 2026
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
-3.1%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
-39.6%
computed by olivLawFY 2026

Profitability

Gross margin
16.3%
computed by olivLawTTM to 27 Sept 2026
EBITDA margin
unavailable
input data missing
EBIT margin
3.9%
computed by olivLawTTM to 27 Sept 2026
Net margin
2.9%
computed by olivLawTTM to 27 Sept 2026
FCF margin
6.8%
computed by olivLawTTM to 27 Sept 2026

Returns

ROE
7.2%
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
ROA
4.4%
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
ROIC
unavailable
input data missing
ROCE
7.9%
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
93.7x
computed by olivLawTTM to 27 Sept 2026

Liquidity

Current ratio
3.0x
computed by olivLawbalance sheet at 27 Sept 2026
Quick ratio
2.4x
computed by olivLawbalance sheet at 27 Sept 2026
Cash ratio
1.2x
computed by olivLawbalance sheet at 27 Sept 2026

Cash

Operating cash flow
45.7 m USD
computed by olivLawTTM to 27 Sept 2026
Capital expenditure
7.0 m USD
computed by olivLawTTM to 27 Sept 2026
Free cash flow
38.8 m USD
computed by olivLawTTM to 27 Sept 2026
FCF conversion
229.3%
computed by olivLawTTM to 27 Sept 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
48 days
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
Days payables outstanding
44 days
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
258.5 m USD
computed by olivLawbalance sheet at 27 Sept 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
15.3x
computed by olivLawTTM to 27 Sept 2026
P/E (TTM)
15.6x
computed by olivLawTTM to 27 Sept 2026
Earnings yield
6.4%
computed by olivLawTTM to 27 Sept 2026
P/B
1.1x
computed by olivLawbalance sheet at 27 Sept 2026
P/S
0.5x
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
6.7x
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
FCF yield
15.0%
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
Dividend yield
0.7%
computed by olivLawTTM to 27 Sept 2026
Shareholder yield (distributions)
4.8%
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026

Risk

Altman Z
4.73
computed by olivLawbalance sheet at 27 Sept 2026

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 56.2% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

64.14 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 258.5 m USD

Key indicators

Market capitalisation
258.5 m USD
computed by olivLawbalance sheet at 27 Sept 2026
P/E (TTM)
15.6x
computed by olivLawTTM to 27 Sept 2026
P/B
1.1x
computed by olivLawbalance sheet at 27 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
7.2%
computed by olivLawTTM to 27 Sept 2026 · balance sheet at 27 Sept 2026
Net margin
2.9%
computed by olivLawTTM to 27 Sept 2026
Revenue growth (YoY)
2.5%
computed by olivLawFY 2026
Dividend yield
0.7%
computed by olivLawTTM to 27 Sept 2026

Coverage and freshness

26/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 27 Sept 2026
Latest balance sheet date: 27 Sept 2026
Share count (cover of the latest filing), as of: 23 Oct 2026
Source: SEC (XBRL)published 30 Oct 2026
verified 2177derived 182

Score by group

56% · Insufficient data

Estimated value range

Low
26.34
USD per share
Mid
34.19
USD per share
High
46.23
USD per share
Price: 64.14 USD
The price is above the range
Potential to the central value: -46.7% (value / price − 1)
Margin of safety: -87.6% (1 − price / value)
Agreement between methods: low · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.52 – 85.05 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E47.17 – 85.05 (Mid 62.04)
    19 companies used · median multiple 15.1x · quartiles 11.5x – 20.6x
    ADNT, ALSN, ALV, APTV, ATMU, BWA, CAAS, DAN, DORM, GNTX, GTX, HLLY, LCII, LEA, MGA, PATK, PHIN, SMP, VC
  • Dividend discount (DDM)5.52 – 7.42 (Mid 6.33)
Multiple comparisons use the SIC vertical: Motor Vehicle Parts & Accessories (SIC 3714)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 56.2% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality2.9%53 (vs peers)11%
FCF conversion · Quality229.3%100 (on a fixed band)11%
Revenue CAGR 3Y · Growth5.5%46 (on a fixed band)15%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet93.7x100 (on a fixed band)11%
Current ratio · Balance sheet3.0x100 (on a fixed band)7%
P/E (TTM) · Valuation15.6x48 (vs peers)19%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation15.0%100 (on a fixed band)15%
Shareholder yield (distributions) · Returns4.8%68 (on a fixed band)11%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet100/100 · 2/3 factors with a value
  • Growth· partial46/100 · 1/2 factors with a value
  • Quality76/100 · 2/3 factors with a value
  • Returns· partial68/100 · 1/2 factors with a value
  • Valuation71/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

STRATTEC SECURITY CORP (STRT). Latest full fiscal year: 2026; data up to 2026-09-27.

Figures computed from the financial statements: revenue 579.4 m USD in 2026; YoY growth 2.5%; net margin 2.9%; ROE 7.2%.

The estimated value range is 26.34–46.23 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 34.19 USD, the price of 64.14 USD leaves a potential of -46.7% (value / price − 1) and a margin of safety of -87.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 56.2% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 229.3%
  • Interest coverage: 93.7x
  • Current ratio: 3.0x
  • FCF yield: 15.0%

What contradicts it

  • The price is above the estimated value range
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Motor Vehicle Parts & Accessories (SIC 3714) · same industry (4-digit SIC) · compared with 34 companies

Multiples and returns vs the median

P/E
15.6x
vertical median 15.1x
at median
EV/EBITDA
—
vertical median 7.5x
P/S
0.5x
vertical median 0.7x
below median (−35.8%)
P/B
1.1x
vertical median 1.4x
below median (−22.9%)
ROE
7.2%
vertical median 8.5%
below median (−15.2%)
Net margin
2.9%
vertical median 2.2%
above median (+32.9%)
EBIT margin
3.9%
vertical median 4.5%
below median (−13.7%)
Revenue YoY
2.5%
vertical median 3.1%
below median (−19.2%)
Net debt/EBITDA
—
vertical median 1.1x
Dividend yield
0.7%
vertical median 1.7%
below median (−61.3%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
MGAMagna International Inc.18.4 bn22.46.9%2.0%−1.9%+34% / +22%
BWABorgwarner Inc.10.1 bn21.58.2%3.4%+1.6%+17% / +50%
ALSNAllison Transmission Holdings, Inc.9.9 bn17.429.7%11.1%−6.7%+36% / +125%
ALVAutoliv, Inc.9.0 bn15.124.8%5.6%+4.1%+7% / +21%
APTVAptiv PLC8.8 bn11.98.5%4.6%+3.5%−44% / −48%
LEALear Corp5.7 bn10.411.6%2.5%−0.2%+11% / −11%
MODModine Manufacturing Co5.2 bn41.311.4%3.6%+23.1%−39% / +100%
GNTXGentex Corporation4.4 bn11.016.4%15.5%+9.6%−9% / −32%
DORMDorman Products, Inc.4.2 bn21.213.3%9.3%+6.0%+8% / +98%
ATMUAtmus Filtration Technologies Inc.3.9 bn18.355.8%11.3%+5.7%−5% / +119%
GTXGarrett Motion Inc.3.6 bn10.1—10.0%+3.1%+20% / +167%
PATKPatrick Industries Inc2.7 bn20.113.0%3.7%+6.3%−22% / +55%
PHINPhinia Inc.2.6 bn14.512.2%5.2%+2.4%+33% / +181%
DANDana Incorporated2.6 bn2.471.4%14.6%−3.0%+6% / +80%
LCIILci Industries2.5 bn12.115.0%5.2%+10.2%−8% / −4%
VCVisteon Corp2.0 bn13.810.8%4.1%−2.5%−22% / −32%
THRMGentherm Incorporated1.6 bn105.31.3%0.6%+2.9%−13% / −32%
ADNTAdient plc1.3 bn28.52.7%0.3%−1.0%−12% / −47%
DCHDauch Corporation1.1 bn—-15.2%-2.0%−4.7%−27% / −31%
SMPStandard Motor Products, Inc.1.0 bn15.19.9%3.8%+22.4%+22% / +28%
AEVAAeva Technologies, Inc.661.5 m——-150.1%+99.4%−15% / +240%
CPSCooper-Standard Holdings Inc.391.6 m——-2.0%+0.4%−29% / +24%
HLLYHolley Inc.351.6 m35.32.3%1.7%+1.9%−32% / −30%
KNDIKandi Technologies Group, Inc.287.8 m—-30.5%-107.4%−31.5%−63% / −88%
STRTStrattec Security Corp258.5 m15.67.2%2.9%+2.5%+2% / +182%

1- and 3-year price returns: for STRT from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
39.00
Total return -39% · Per year -39%
68.92
Total return 7% · Per year 7%
103.77
Total return 62% · Per year 62%
3 years
38.65
Total return -40% · Per year -16%
76.76
Total return 20% · Per year 6%
126.79
Total return 98% · Per year 26%
5 years
38.29
Total return -40% · Per year -10%
85.49
Total return 33% · Per year 6%
154.90
Total return 142% · Per year 19%
What moves the 3-year price the most
  • Exit P/E± 19.19
  • Net margin± 13.43
  • Annual revenue growth± 10.92
  • Annual dilution± 1.13

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 28 Aug 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (29 Oct 2026 · results).

In brief

Strattec designs and delivers access solutions for vehicles, including locks, digital keys, power door systems and latches, sold mainly to North American automakers. Net sales reached 579.4 million USD in fiscal 2026 1, and gross margin expanded by 150 basis points, making the company's transformation relevant for investors in an uncertain auto market.

SWOT

Strengths

  • The company has a strong balance sheet with no debt and an incumbent position on platforms for their vehicle life, giving a predictable revenue base once programs are won 12.
  • Engineering expertise across integrated access systems, from mechanical parts to software, is an advantage over smaller suppliers 1.
  • Gross margin improvement and cash generation in fiscal 2026 show that efficiency measures are delivering results 12.

Weaknesses

  • Dependence on a few large North American customers, mainly General Motors, Ford and Stellantis, makes revenue sensitive to their decisions 1.
  • Sales and margins are affected by currency swings in the Mexican peso, because much of the cost base sits in Mexico 1.
  • Quarterly results vary with customer production volumes and seasonality, making short-term profitability hard to predict 1.

Opportunities

  • Winning new platforms and customers, including outside North America and in the broader transportation sector, could diversify the revenue base 1.
  • Digital key and connected smart access products could raise content per vehicle if OEMs adopt them on new platforms 1.
  • The share repurchase program and available capital give flexibility for investment or acquisitions if market conditions are favorable 2.

Threats

  • Projected declines in customer production and EV program cancellations could reduce sales in coming years 1.
  • Tariffs, the USMCA review and trade tensions with China could raise production costs and complicate supply 1.
  • Competition from Chinese manufacturers and suppliers could pressure prices and market share 1.

Risks

  • Customer concentrationhigh

    A small number of automakers generate most sales, and losing a major customer could have a disproportionate effect on results 1.

  • Tariffs and cross-border tradehigh

    Changes in tariffs and the USMCA review could raise costs or reduce competitiveness of products made in Mexico 1.

  • Cyclical auto demandmedium

    Vehicle production is sensitive to interest rates, inflation and consumer confidence, and a production decline could reduce the company's sales 1.

  • Currency exposuremedium

    Swings in the Mexican peso can change labor and manufacturing costs in dollar terms, although the company uses forward contracts for part of this exposure 1.

  • Supply chainmedium

    Component shortages or higher raw material and freight costs could interrupt production, and supplier consolidation increases reliance on fewer sources 1.

Investment thesis

What would need to be true (bull case)

  • If the transformation continues, gross margin and cash generation could hold near fiscal 2026 levels, supported by pricing, efficiency and a debt-free balance sheet 12.
  • Its incumbent position on existing platforms and high share of OEM sales could produce stable revenue over vehicle lives 1.
  • Winning new programs for upcoming platforms could renew growth if the North American market stabilizes 1.

What would break the thesis

  • Forecasts of lower North American production and lower customer volumes could reduce sales and pressure operating margins in the coming years 1.
  • EV program cancellations and Chinese competition could limit growth and reduce the company's ability to win new platforms 1.
  • Dependence on tariffs, USMCA rules and the Mexican peso could erode results if the trade environment worsens 1.

What to watch

  • Trend in gross margin and tariff-related costsQ1 2027
  • Results on newly won platforms and EV programsnext 10-K
  • Customer volumes compared with the forecast decline2027
  • Outcome of the USMCA review and effect on Mexican operations2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 28 Aug 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (29 Oct 2026 · results).

The business

Strattec is a global automotive access company designing safe, secure access solutions organized into three product families: Permission (secure entry and ignition), Motion (power sliding doors, tailgates and deck lids) and Hold (patented high-function latches) 1. About 90% of sales go to OEMs, the rest to service, aftermarket and non-automotive customers 1. The company operates six facilities in the United States and Mexico, and its products appear on over 90 customer vehicles, including EV, hybrid and internal combustion models 1.

Customer relationships are long-term: products are designed three to five years before production and, once integrated, the company typically remains the incumbent supplier for the vehicle life of five to seven years 1. There is no firm backlog, since sales depend on OEM purchase orders and volume updates 1.

The strategy described in the annual report is a business transformation aimed at strengthening profitability and sustainable sales growth through an optimized cost structure, manufacturing automation and better working capital use 1. The company seeks to win new platforms with current customers and to diversify its customer base domestically and abroad 1.

Segments

Permission (access and ignition)

Includes mechanical and electronic locks, keys and fobs, passive entry passive start systems, digital key and steering column ignition housings, sold directly to OEMs and through the aftermarket 1. The digital key leverages the company's software capability 1.

Motion (powered access)

Covers power sliding doors, power tailgates, lift gate systems and power deck lids, including drivetrain mechanisms and electronic control units, integrated across mechanical, electrical and software architectures 1.

Hold (latching)

Includes patented high-function latches, from power clinching latches to release latches, designed for basic and luxury vehicle architectures 1. The company says its patents give advantages in specific applications, though no single patent is material to the whole business 1.

Market context

The North American light vehicle market faces uncertainty from trade policy, tariffs, currency moves and OEM production schedules; output stayed below historical peaks in fiscal 2026 1. Third-party forecasts indicate a modest decline in North American light vehicle production in fiscal 2027, and primary customers could decline more steeply 1.

The trade environment remains dynamic: tariffs have changed and the USMCA review has added uncertainty over rules of origin and regional content, which could affect costs for suppliers producing in Mexico 1. The Mexican peso is an important factor because much of the manufacturing sits in Mexico 1.

Trends

  • Electrification and new vehicle architecturesmixed

    The company's products are compatible with combustion, hybrid and electric vehicles, and its digital key and software systems fit newer vehicle architectures 1. However, customer cancellations of EV programs reduced sales in fiscal 2026 1.

  • Tariffs and supply chain reconfigurationmixed

    Tariffs and trade measures raised costs and created uncertainty, but the company passed part of these costs on through pricing and tariff surcharges, and lower tariff charges in the fourth quarter helped margins 12.

  • Competition from Chinaheadwind

    Chinese OEMs and suppliers are expanding in global markets through competitive pricing and government-backed investment, which could pressure prices for North American suppliers if their share grows 1.

  • Operational efficiency and automationtailwind

    Headcount reduction, manufacturing automation and freight optimization supported gross margin improvement in fiscal 2026 despite currency pressure 1.

Competitive position

The company competes with domestic and foreign suppliers on product design, engineering support, delivery, price, innovation and aftermarket support; rivals named include Aisin, Brose, Magna, Valeo and Stabilus among others 1. The number of direct competitors is relatively small, but OEMs actively encourage competition among suppliers 1.

The company warns that some competitors have larger customer bases and greater financial and technical scale, allowing faster responses to new technologies, and that vertical integration by competitors and customers could complicate sourcing decisions 1.

  • Magna International

    Global automotive component supplier named among Strattec's competitors in the annual report; ticker not confirmed in the source.

  • Valeo

    European automotive component supplier listed among competitors in the annual report, without a confirmed US ticker.

  • Brose

    Supplier of drive systems and power doors named among competitors in the report.

  • Stabilus

    Maker of drive and damping systems cited as a rival in the annual report.

News & filings

In the press

The latest news item in our archive is from 29 Aug 2026; the newest SEC filing is from 30 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-06-28 · SEC / Strattec Security Corporation · 28 Aug 2026
  2. [2] Form 8-K, results release (exhibit 99.1) · SEC / Strattec Security Corporation · 25 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.