Stock Information
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STRTStrattec Security Corp.

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Company Info

CEO

Frank J. Krejci

Location

Wisconsin, USA

Exchange

Nasdaq

Website

https://strattec.com

Summary

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand.

Company Info

CEO

Frank J. Krejci

Location

Wisconsin, USA

Exchange

Nasdaq

Website

https://strattec.com

Summary

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand.

AI Insights for STRT
2 min read

Quick Summary

Strattec Security Corporation is a U.S.-based automotive supplier headquartered in Madison, Wisconsin. The company designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand. Its products are used in cars, light trucks, and other transportation-related vehicles. Strattec primarily sells to automotive and light truck original equipment manufacturers, which means its performance is closely tied to vehicle production schedules and OEM sourcing decisions. The company also serves wholesale distributors, component-part marketers, and other users of automotive access and security components. Its business sits within the automobiles and trucks industry and the broader manufacturing sector.

The Bull Case

  • Strattec’s primary strength is its specialized focus on automotive access-control products.
  • This niche expertise can help the company serve OEM customers that require high reliability, security, and engineering consistency.
  • The company has an established position in the automotive supplier ecosystem and sells directly to vehicle manufacturers as well as distributors and other component users.
  • Its valuation metrics appear relatively modest, with EV-to-EBITDA of 5.7043 and EV-to-revenue of 0.4525, which may appeal to investors looking for profitable small-cap industrial companies.
  • The company also reported positive net income, positive operating income, and positive EPS in the most recent quarter.

The Bear Case

  • Strattec’s weaknesses include its relatively small scale compared with global automotive suppliers.
  • With a market capitalization of about $341.6 million, the company may have less financial flexibility, bargaining power, and research capacity than larger competitors.
  • Its business is closely tied to automotive OEM production cycles, which can be volatile and affected by macroeconomic conditions.
  • The company does not currently show a dividend yield, so income-focused investors may find it less attractive than dividend-paying industrial stocks.
  • Revenue concentration risk can also be meaningful for automotive suppliers if sales depend heavily on a limited number of OEM programs.

Key Risks

  • Strattec faces significant risks from automotive production volatility and OEM sourcing decisions.
  • If major customers reduce vehicle output, delay platforms, or shift suppliers, the company’s revenue and profitability could decline.
  • Inflation, labor costs, tariffs, supply-chain disruptions, and raw-material price changes could pressure margins.
  • Competition from large global suppliers and specialized access-system companies may limit pricing power.

What to Watch

UpcomingThe most recent reported quarter is listed as fiscal 2026 Q4.
UpcomingDuring that quarter, Strattec reported operating revenue of $137.632 million and total revenue of the same amount.
UpcomingThe company generated gross profit of $22.661 million, operating income of $5.046 million, and net income of $3.825 million.
ExpectedFor the next quarter, investors are likely to focus on whether Strattec can maintain positive profitability and continue converting revenue into operating income.

Price Drivers

  • Strattec’s stock price is likely driven by earnings performance, revenue trends, operating margins, and cash-flow generation.
  • The provided data show diluted EPS of 0.78, basic EPS of 0.79, net income of about $3.825 million, and operating income of about $5.046 million for the reported quarter.
  • Valuation metrics such as a price-to-earnings ratio of 13.6723, an earnings yield of 7.3141%, and an EV-to-EBITDA ratio of 5.7043 may attract value-oriented investors if profitability appears sustainable.
  • The company’s market capitalization of about $341.6 million makes it a smaller-cap stock, so volume, investor sentiment, and contract-related news can move the price more sharply than with larger automotive suppliers.

Recent News

  • Recent news directly mentioning Strattec is limited but positive in tone.
  • A Zacks-related automotive article noted that Renault, Modine, and Strattec were rated “Strong Buy,” while discussing weakness in Li Auto’s Q4 2025 results.
  • The broader news feed also included updates on major automotive companies such as Magna, NIO, Honda, XPeng, and Carvana.
  • These articles show that investor attention in the automotive space remains focused on earnings, margins, vehicle deliveries, production outlooks, and strategic expansion.

Market Trends

  • The broader automotive market is being shaped by affordability pressures, tariffs, electrification, vehicle complexity, autonomy, and changing consumer demand.
  • Recent news shows mixed performance across automakers, with Li Auto reporting weaker deliveries and revenue while NIO posted strong delivery growth and better-than-expected results.
  • Suppliers such as Magna are guiding investors based on revenue, margins, cash, debt, and production assumptions, which highlights the importance of OEM production levels for the entire supply chain.
  • Vehicle access and security systems may become more complex as cars add electronic, connected, and software-driven features.

AI-generated summary. Not investment advice. DYOR.

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Topics: Company overview • Products • Competitors • Strengths & Risks

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