Strattec Security: Is Now the Time to Invest?

Strattec Security has grown EPS by 25% per year for the last three years and has seen revenue growth alongside a rising EBIT margin. The company's strong financial performance and insider ownership make it an attractive investment opportunity. However, investors should be aware that the stock market can be volatile and that past performance is not a guarantee of future success.

Strattec Security Corporation (NASDAQ: STRT) has demonstrated robust financial performance over the past three years, with earnings per share (EPS) increasing by 25% annually and revenue growth aligning with a rising EBIT margin. These positive trends have made Strattec Security an attractive investment opportunity for many investors.

The company's latest quarterly earnings report, released on May 8, 2025, highlighted its strong performance. Strattec Security reported an EPS of $1.50 for the quarter, surpassing analysts' expectations of $0.95 by $0.55. This positive earnings beat comes after a series of strong financial reports, including a 25% annual EPS growth rate over the past three years [1].

In addition to its strong earnings, Strattec Security has seen consistent revenue growth. The company's revenue for the latest quarter was $144.08 million, meeting analysts' expectations of $140.84 million. This revenue growth, coupled with a rising EBIT margin, indicates the company's ability to manage costs effectively while increasing its profitability.

Strattec Security's strong financial performance is also reflected in its insider ownership. Insiders hold a significant portion of the company's shares, indicating their confidence in the company's future prospects. This insider ownership can be a positive indicator for investors, as it suggests that the company's management and directors have a vested interest in its success [1].

However, investors should be cautious when considering Strattec Security as an investment. The stock market is known for its volatility, and past performance is not a guarantee of future success. While Strattec Security's financials are strong, investors should also consider other factors, such as the company's competitive landscape, management team, and potential risks.

In conclusion, Strattec Security's strong financial performance, insider ownership, and consistent revenue growth make it an attractive investment opportunity. However, investors should exercise caution and conduct thorough due diligence before making any investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-truffle-hound-capital-llc-has-395-million-stock-position-in-strattec-security-corporation-nasdaqstrt-2025-08-02/
[2] https://www.tipranks.com/stocks/strt