Strattec: Profitability Transformation Is Driving The Story

Kurt Christensen918 FollowersFollow5ShareSavePlay(13min)CommentsSummaryStrattec Security Corporation continues to deliver revenue and margin growth despite auto industry headwinds, maintaining a positive long-term trend.STRT's restructuring has driven sustained gross margin gains, with four straight quarters above 16%, and operating income more than doubling year-over-year.Despite guiding for a 3-4% sales slowdown in H2, STRT's cost discipline and strong cash position support ongoing profitability and strategic flexibility.Valuation remains compelling, with STRT trading at a PE of 12.47 and EV/Sales of 0.42, well below industry averages; I maintain my buy rating. Monty Rakusen/Cultura via Getty Images Strattec Security Corporation (STRT) is a stock that has continued to perform well since I first reviewed it. There have been some fluctuations, but overall the stock has maintained a positive trend line. That isThis article was written byKurt Christensen918 FollowersFollowI am a graduate in finance. Currently working in international tax. A personal investor.Analyst’s Disclosure: I/we have a beneficial long position in the shares of STRT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.