STRT - Strattec Changes Continue But Margins Are Challenged The Stock Is Still A Hold
2024-07-20 05:32:13 ET
Summary
- Strattec Security is a manufacturer of auto parts. The company specializes in locks and automatic door openers.
- The company's 3Q24 result saw input-driven price increases offset by higher wage costs. The positive trend in gross margins was arrested.
- The company's long-term margins are consistently shrinking, with each positive cycle shorter than the last. The current valuation does not reflect this reality.
- With flat US auto sales and challenges in margins, a speculative position is less appealing than before.
Strattec Security ( STRT ) is a manufacturer of auto parts. The company specializes in locks and automatic door openers. ...
Strattec Changes Continue But Margins Are Challenged, The Stock Is Still A Hold