STRATTEC SECURITY CORPORATION (STRT) exhibits 16.5% gross margins and 15.2% return on invested capital within Consumer Discretionary (Auto Parts:O.E.M.), balanced against a 4.8x enterprise multiple and 4.8% implied options volatility.
Sustained 16.5% gross profitability converts into 4.6% operating margin and 15.2% ROIC, outpacing sector cost of capital.
ROIC: 15.2% // GM: 16.5%YoY revenue trajectory of +2.5% paired with 15.19% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +2.5% // FCF YLD: 15.19%Altman Z-Score of 4.45 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 4.45 // F-SCORE: 6/9Trading at 12.5x trailing P/E (11.6x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 12.5x // EV/EBITDA: 4.8xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $64.38 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Auto Parts:O.E.M. require continuous execution to defend 3.6% net margins.
NET MARGIN: 3.6% // D/E: 0.45x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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