Strattec Security Corp.

STRT pitch long Luciano Ferreira

Thesis

Strattec Security Corp. is trading at less than 7x depressed LTM operating income and at 1.4x tangible book value, presenting an attractive buying opportunity. The company has a solid balance sheet with no debt, generates significant cash flow, and is implementing a turnaround strategy that could lead to a stock price of $58 in three years, yielding a 12% annual return.

Did it work?

inconclusive confidence: low

While Strattec Security Corp. has experienced a significant price increase of 111.8%, the time elapsed since the pitch is unknown, making it difficult to assess whether this performance aligns with the long-term thesis of reaching a target price of $58 in three years. Without knowing the timeframe, we cannot definitively conclude if the thesis has fully played out or if this return is merely short-term noise.

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