olivLaw · US equity research
Strattec Security Corporation STRT
Motor Vehicle Parts & Accessories · SIC 3714 · Vertical: Motor Vehicle Parts & Accessories (SIC 3714)
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The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).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.
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
| Company | S&P 500 | vs S&P 500 | Vertical 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 | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 27 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 129.9 m | 144.1 m | 152.0 m | 152.4 m | 137.5 m | 137.6 m | 151.8 m | 147.2 m |
| Cost of revenue | 112.8 m | 121.0 m | 126.6 m | 126.1 m | 114.8 m | 115.0 m | 128.2 m | 122.9 m |
| Gross profit | 17.2 m | 23.1 m | 25.4 m | 26.3 m | 22.7 m | 22.7 m | 23.6 m | 24.3 m |
| Operating income | 2.1 m | 7.1 m | 8.5 m | 10.4 m | 4.9 m | 5.0 m | 6.2 m | 6.4 m |
| Interest expense | 257.0 k | 243.0 k | 212.0 k | 156.0 k | 96.0 k | 70.0 k | 37.0 k | 37.0 k |
| Pre-tax income | 1.8 m | 7.4 m | 10.2 m | 10.9 m | 7.3 m | 5.1 m | 9.6 m | 7.2 m |
| Income tax | 405.0 k | 1.6 m | 2.2 m | 2.4 m | 1.7 m | 1.3 m | 6.0 m | 1.9 m |
| Net income | 1.3 m | 5.4 m | 8.3 m | 8.5 m | 4.9 m | 3.2 m | 3.9 m | 4.8 m |
| Diluted EPS | 0.32 | 1.32 | 2.01 ≈ | 2.07 | 1.20 | 0.78 | 0.95 ≈ | 1.19 |
| Operating cash flow | 9.4 m ≈ | 20.7 m ≈ | 30.2 m | 11.3 m | 13.9 m ≈ | 11.4 m ≈ | 9.7 m | 10.8 m |
| Capex | 917.0 k ≈ | 1.2 m ≈ | 3.0 m | 1.5 m | 2.6 m ≈ | 1.8 m ≈ | 1.4 m | 1.2 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 year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 487.0 m | 385.3 m | 485.3 m | 452.3 m | 492.9 m | 537.8 m | 565.1 m | 579.4 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 m | 22.5 m | 7.0 m | -6.7 m | 16.3 m | 18.7 m | 20.6 m |
| Net income YoY | −238.6% | unavailable | unavailable | −68.9% | −195.1% | unavailable | +14.5% | +10.2% |
| Diluted EPS | -4.63 | -2.04 | 5.85 | 1.79 | -1.70 | 4.07 | 4.58 | 5.00 |
| Diluted EPS YoY | −239.5% | unavailable | unavailable | −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 flow | 12.5 m | 13.0 m | 26.2 m | -3.8 m | -7.3 m | 2.5 m | 64.5 m | 39.0 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
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 485.3 m | 452.3 m | 492.9 m | 537.8 m | 565.1 m | 579.4 m | SEC (XBRL)· 28 Aug 2026verified |
| Cost of revenue | 406.6 m | 396.2 m | 450.8 m | 472.3 m | 480.5 m | 484.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Gross profit | 78.7 m | 56.0 m | 42.2 m | 65.5 m | 84.6 m | 95.4 m | SEC (XBRL)· 28 Aug 2026verified |
| Research & development | 10.8 m | 12.2 m | 15.9 m | 14.8 m | 21.7 m | 21.8 m | SEC (XBRL)· 28 Aug 2026verified |
| Operating income | 33.9 m | 8.9 m | -6.1 m | 17.8 m | 22.8 m | 26.5 m | SEC (XBRL)· 28 Aug 2026verified |
| Interest expense | 302.0 k | 221.0 k | 960.0 k | 900.0 k | 1.0 m | 359.0 k | SEC (XBRL)· 28 Aug 2026verified |
| Pre-tax income | 35.0 m | 9.3 m | -7.7 m | 20.2 m | 24.6 m | 33.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Income tax | 5.1 m | 415.0 k | 1.3 m | 3.8 m | 5.7 m | 11.3 m | SEC (XBRL)· 28 Aug 2026verified |
| Net income | 22.5 m | 7.0 m | -6.7 m | 16.3 m | 18.7 m | 20.6 m | SEC (XBRL)· 28 Aug 2026verified |
| Diluted EPS | 5.85 | 1.79 | -1.70 | 4.07 | 4.58 | 5.00 | SEC (XBRL)· 28 Aug 2026verified |
| Weighted average diluted shares | 3.9 m | 3.9 m | 3.9 m | 4.0 m | 4.1 m | 4.1 m | SEC (XBRL)· 28 Aug 2026verified |
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 14.5 m | 8.8 m | 20.6 m | 25.4 m | 84.6 m | 108.2 m | SEC (XBRL)· 28 Aug 2026verified |
| Inventories | 70.9 m | 80.5 m | 77.6 m | 81.6 m | 64.7 m | 64.3 m | SEC (XBRL)· 28 Aug 2026verified |
| Current assets | 174.9 m | 188.2 m | 225.8 m | 253.8 m | 290.1 m | 296.3 m | SEC (XBRL)· 28 Aug 2026verified |
| Property, plant & equipment, net | 96.4 m | 91.7 m | 94.4 m | 86.2 m | 77.4 m | 69.8 m | SEC (XBRL)· 28 Aug 2026verified |
| Total assets | 310.6 m | 319.1 m | 340.9 m | 364.3 m | 391.5 m | 387.5 m | SEC (XBRL)· 28 Aug 2026verified |
| Accounts payable | 36.7 m | 44.0 m | 57.9 m | 54.9 m | 65.8 m | 55.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Current liabilities | 77.6 m | 81.5 m | 109.0 m | 118.3 m | 119.4 m | 102.2 m | SEC (XBRL)· 28 Aug 2026verified |
| Total liabilities | — | — | — | 138.7 m | 145.0 m | 122.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Equity | 212.8 m | 219.9 m | 211.0 m | 225.6 m | 246.4 m | 265.5 m | SEC (XBRL)· 28 Aug 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 35.2 m | 10.4 m | 10.1 m | 12.3 m | 71.7 m | 46.3 m | SEC (XBRL)· 28 Aug 2026verified |
| Capex | 8.9 m | 14.2 m | 17.4 m | 9.8 m | 7.2 m | 7.3 m | SEC (XBRL)· 28 Aug 2026verified |
| Free cash flow | 26.2 m ≈ | -3.8 m ≈ | -7.3 m ≈ | 2.5 m ≈ | 64.5 m ≈ | 39.0 m ≈ | SEC (XBRL)· 28 Aug 2026derived |
| Investing cash flow | -9.0 m | -14.3 m | 8.9 m | -7.8 m | -7.2 m | -5.4 m | SEC (XBRL)· 28 Aug 2026verified |
| Financing cash flow | -22.9 m | -1.9 m | -7.4 m | 72.0 k | -4.9 m | -16.9 m | SEC (XBRL)· 28 Aug 2026verified |
| Share repurchases | — | — | — | 0 | 0 | 7.4 m | SEC (XBRL)· 28 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 56.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 258.5 m USD
Key indicators
Coverage and freshness
Score by group
56% · Insufficient data
Estimated value range
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 – 20.6xADNT, 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)
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%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 2.9% | 53 (vs peers) | 11% |
| FCF conversion · Quality | 229.3% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 5.5% | 46 (on a fixed band) | 15% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 93.7x | 100 (on a fixed band) | 11% |
| Current ratio · Balance sheet | 3.0x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 15.6x | 48 (vs peers) | 19% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 15.0% | 100 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 4.8% | 68 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
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
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MGAMagna International Inc. | 18.4 bn | 22.4 | 6.9% | 2.0% | −1.9% | +34% / +22% |
| BWABorgwarner Inc. | 10.1 bn | 21.5 | 8.2% | 3.4% | +1.6% | +17% / +50% |
| ALSNAllison Transmission Holdings, Inc. | 9.9 bn | 17.4 | 29.7% | 11.1% | −6.7% | +36% / +125% |
| ALVAutoliv, Inc. | 9.0 bn | 15.1 | 24.8% | 5.6% | +4.1% | +7% / +21% |
| APTVAptiv PLC | 8.8 bn | 11.9 | 8.5% | 4.6% | +3.5% | −44% / −48% |
| LEALear Corp | 5.7 bn | 10.4 | 11.6% | 2.5% | −0.2% | +11% / −11% |
| MODModine Manufacturing Co | 5.2 bn | 41.3 | 11.4% | 3.6% | +23.1% | −39% / +100% |
| GNTXGentex Corporation | 4.4 bn | 11.0 | 16.4% | 15.5% | +9.6% | −9% / −32% |
| DORMDorman Products, Inc. | 4.2 bn | 21.2 | 13.3% | 9.3% | +6.0% | +8% / +98% |
| ATMUAtmus Filtration Technologies Inc. | 3.9 bn | 18.3 | 55.8% | 11.3% | +5.7% | −5% / +119% |
| GTXGarrett Motion Inc. | 3.6 bn | 10.1 | — | 10.0% | +3.1% | +20% / +167% |
| PATKPatrick Industries Inc | 2.7 bn | 20.1 | 13.0% | 3.7% | +6.3% | −22% / +55% |
| PHINPhinia Inc. | 2.6 bn | 14.5 | 12.2% | 5.2% | +2.4% | +33% / +181% |
| DANDana Incorporated | 2.6 bn | 2.4 | 71.4% | 14.6% | −3.0% | +6% / +80% |
| LCIILci Industries | 2.5 bn | 12.1 | 15.0% | 5.2% | +10.2% | −8% / −4% |
| VCVisteon Corp | 2.0 bn | 13.8 | 10.8% | 4.1% | −2.5% | −22% / −32% |
| THRMGentherm Incorporated | 1.6 bn | 105.3 | 1.3% | 0.6% | +2.9% | −13% / −32% |
| ADNTAdient plc | 1.3 bn | 28.5 | 2.7% | 0.3% | −1.0% | −12% / −47% |
| DCHDauch Corporation | 1.1 bn | — | -15.2% | -2.0% | −4.7% | −27% / −31% |
| SMPStandard Motor Products, Inc. | 1.0 bn | 15.1 | 9.9% | 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 m | 35.3 | 2.3% | 1.7% | +1.9% | −32% / −30% |
| KNDIKandi Technologies Group, Inc. | 287.8 m | — | -30.5% | -107.4% | −31.5% | −63% / −88% |
| STRTStrattec Security Corp | 258.5 m | 15.6 | 7.2% | 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.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 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% |
- 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.
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.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Strattec Security Targets Margin Gains, New Customers and Digital Key GrowthYahoo Finance — News · 29 Aug 2026 · EN
- Strattec Security Corporation Q4 2026 Earnings Call SummaryYahoo Finance — News · 26 Aug 2026 · EN
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
- Quarterly report30 Oct 2026
- Current report29 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report14 Oct 2026Shareholder vote · Financial statements and exhibits
- Proxy statement16 Sept 2026
- Annual report28 Aug 2026
- Current report25 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report28 May 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report08 May 2026
- Current report07 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report30 Apr 2026Termination of a material agreement
Sources
- [1] Form 10-K, fiscal year ended 2026-06-28 · SEC / Strattec Security Corporation · 28 Aug 2026
- [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.