STRATTEC SECURITY CORPORATION Common Stock (STRT)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Strattec as a Graham-style bargain candidate, not a compounder. It designs locks, keys, fobs, door handles and power access parts for automakers. In fiscal 2026, the year ended 2026-06-28, revenue was $579.4M, net income $20.6M, and diluted EPS $5.00. In fiscal 2025, revenue was $565.1M, net income $18.7M, and diluted EPS $4.58, so the annual trend is modestly positive. But the quarterly filed figures show net income falling from $8.5M in fiscal Q1 2026, quarter ended 2025-09-28, to $4.9M in fiscal Q2 2026, quarter ended 2025-12-28, to $3.2M in fiscal Q3 2026, quarter ended 2026-03-29. That suggests the turnaround may be uneven. The balance sheet is a real strength: D/E is only 0.01, Altman Z is 3.34, Piotroski is 7/9, and trailing free cash flow is $39.0M. FairStock figures show returns are modest: ROE 8.45% and ROCE 4.13%, with thin net margins around 3.6% in fiscal 2026. At the close on 2026-10-13, the price was $63.69, giving a FairStock P/E of 12.74, P/B of 1.08, EV/EBITDA of 3.01, and FCF yield of 15.4%. The Graham Number is $82.16, implying a 22.48% margin of safety. I don't see a wide moat in auto parts, and cyclical production and pricing pressure are real. But the price already discounts a lot, and the balance sheet plus cash generation provide patience. FairStock's Lynch category is TURNAROUND, based on a return to profit after a loss within the last three years.

In plain English: Strattec makes locks, keys, fobs, door handles and power access parts for cars. The business is profitable and has very little debt, but profits have been uneven lately and margins are thin. At the recent price of $63.69, the shares look inexpensive compared with the company's profits and cash generation, though the car market can be up and down.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-29) · fiscal Q2 2026 10-Q (period ended 2025-12-28) · fiscal Q1 2026 10-Q (period ended 2025-09-28) · fiscal Q3 2025 10-Q (period ended 2025-03-30) · FY2026 10-K (period ended 2026-06-28) · FY2025 10-K (period ended 2025-06-29) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer