Strattec Story

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STRT -- USA Stock  

USD 51.52  1.46  2.92%

STRATTEC SECURITY Receivables Turnover is comparatively stable at the moment as compared to the past year. STRATTEC SECURITY reported Receivables Turnover of 6.18 in 2020. Inventory Turnover is likely to gain to 10.48 in 2021, whereas Average Assets are likely to drop slightly above 144 M in 2021. The essential rationale behind this perspective is to break down our current position on STRATTEC for private investors considering to short it. We will break down why STRATTEC SECURITY private investors may still consider a stake in the business.
Published over three weeks ago
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Is STRATTEC SECURITY (NASDAQ:STRT) outlook positive for March 2021?
STRATTEC SECURITY holds a performance score of 18 on a scale of zero to a hundred. The entity has a beta of 0.286, which indicates not very significant fluctuations relative to the market. Let's try to break down what STRATTEC's beta means in this case. As returns on the market increase, STRATTEC SECURITY returns are expected to increase less than the market. However, during the bear market, the loss on holding STRATTEC SECURITY will be expected to be smaller as well. Although it is vital to follow STRATTEC SECURITY current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. Our philosophy towards measuring future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if STRATTEC SECURITY CORPORATION expected return of 1.04 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use STRATTEC SECURITY total risk alpha, downside variance, as well as the relationship between the Downside Variance and daily balance of power to analyze future returns on STRATTEC SECURITY.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Strattec Security. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Strattec Security

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Strattec Security's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Strattec Security in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Strattec Security. Your research has to be compared to or analyzed against Strattec Security's peers to derive any actionable benefits. When done correctly, Strattec Security's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Strattec Security.

How important is Strattec Security's Liquidity

Strattec Security financial leverage refers to using borrowed capital as a funding source to finance Strattec Security ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Strattec Security financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Strattec Security's total debt and its cash.

How Strattec utilizes its cash?

To perform a cash flow analysis of Strattec Security, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Strattec Security is receiving and how much cash it distributes out in a given period. The Strattec Security cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Strattec Security Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Strattec Security reported Net Cash Flow from Operations of 29.94 Million in 2020

Detailed Perspective On Strattec Security

STRATTEC SECURITY CORPORATION currently demonstrates below-verage downside deviation. It has Information Ratio of 0.17 and Jensen Alpha of 0.66. However, we do advice investors to further question STRATTEC SECURITY CORPORATION expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Returns Breakdown

Return on Investment5.21
Return on Assets(5.64)
Return on Equity(10.74)
Return Capital0.22
Return on Sales0.0683

Another 3 percent gain for STRATTEC SECURITY

STRATTEC SECURITY newest potential upside boosts over 6.15. As of the 30th of January, STRATTEC SECURITY has the coefficient of variation of 436.46, and Risk Adjusted Performance of 0.2095. Compared to fundamental indicators, the technical analysis model makes it possible for you to check available technical drivers of STRATTEC SECURITY, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for STRATTEC SECURITY CORPORATION, which can be compared to its competition. Please validate STRATTEC SECURITY information ratio and downside variance to decide if STRATTEC SECURITY is priced fairly, providing market reflects its prevalent price of 54.75 per share. Given that STRATTEC SECURITY has jensen alpha of 0.6647, we advise you to double-check STRATTEC SECURITY CORPORATION's current market performance to make sure the company can sustain itself next year.

Our Bottom Line On STRATTEC SECURITY

Whereas some other firms within the auto parts industry are still a little expensive, even after the recent corrections, STRATTEC SECURITY may offer a potential longer-term growth to private investors. In closing, as of the 30th of January 2021, we believe that at this point, STRATTEC SECURITY is undervalued with low chance of bankruptcy within the next 2 years. Our present 'Buy-vs-Sell' recommendation on the firm is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Strattec Security. Please refer to our Terms of Use for any information regarding our disclosure principles.

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