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Strattec Security Corporation

STRT
43
Auto - Parts · Consumer Cyclical
Price
$82.36
-0.97 (-1.16%)
Market Cap
$344.2M
Exchange
NASDAQ
Winston Score
43
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+5.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 3.9M (2021) → 4.1M (2025)

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company offers mechanical and electronically enhanced locks and keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products. It also prov

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-4.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-41.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$22M/ year

Rising (+47% vs prior year)

3.8% of revenue

In line with sector average (4%)

R&D investment increasing — building for the future

Insider Activity

3.4%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$107M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Strattec Security Corporation's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
16.5%
Thin — 16.5% gross margin
Operating Margin
4.2%
Thin — 4.2% operating margin
ROCE
2.4%
Weak — 2.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+0.9%
Nearly flat sales (0.9% YoY)
EPS YoY
+3.3%
Modest earnings growth (3.3% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
349%
Turns 349% of profit into real cash
FCF Margin
11.8%
Modest free cash flow (11.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.00
Conservative — low debt load (0.00)
Interest Cover
42.18x
Comfortably covers interest (42.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
15.3x
Fair value — P/E 15.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+1.5
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Not applicable for this business.
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