zoff-photo/iStock via Getty Images Strattec Security Corporation (NASDAQ: STRT ) is a designer and manufacturer of vehicle access and power systems. The company has alliances and JVs in place with competitors that have positioned it as one of the world’s largest players for these specific components. The company has increased revenues in line with U.S. auto sales, but consistently lower gross margins have threatened profitability. STRT suffers from the same operational cycles as the auto industry in general, and these cycles seem to have worsened after the GFC. Although the company might be interesting on a historical basis, it seems difficult that the company will recover previous profitability levels. Further, historical FCF averages show a very different picture from accruals. Note: Unless otherwise stated, all information has been obtained from STRT’s filings with the SEC . Business description Components for the auto industry : STRT designs and manufactures vehicle access and power components. These include keys, start systems, latch products, and power access systems. Some of STRT’s core products (STRT’s investor presentation) The auto component manufacturing industry is not great. It is a design-win business where competitors spend R&D resources to try to get a component into one of […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
