Group 1: Holley Inc. (NYSE:HLLY) - Holley Inc. is trading at $3.62 with a target price of $2.20, indicating a potential downside of 39.35% [1][5] - The stock is excluded from coverage due to a pessimistic outlook from investment analysts [1] Group 2: Strattec Security Corporation (STRT) - Strattec Security Corporation is trading at $67.11 with a target price of $81.90, suggesting a growth potential of 22.03% [2][4][5] - The company has a market cap of $280.87 million and a price-to-earnings (P/E) ratio of 13.42, indicating financial stability [2] Group 3: MasterCraft Boat Holdings, Inc. (MCFT) - MasterCraft Boat Holdings is currently priced at $20.13 with a target price of $14.42, facing a potential downside of 28.39% [3][5] - The company has a market cap of $328.85 million, but its P/E ratio of 43.41 suggests it may be overvalued [3] - The earnings per share (EPS) of $0.81 indicates limited profitability compared to peers [3]

Strattec Security (STRT) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The pow ...

Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Strattec Security (STRT) or AB Volvo (VLVLY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Sco ...

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - Most recommendations will be holds, indicating a cautious approach to investment, with only a small fraction of companies deemed suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

Strattec Security Corporation FY Conference Summary Company Overview - **Company Name**: Strattec Security Corporation - **Ticker**: NasdaqGM: STRT - **Market Cap**: Approximately $280 million with about $200 million in equity cap - **Shares Outstanding**: Roughly 4 million shares - **Location**: Milwaukee, Wisconsin - **Debt**: No debt at the parent level, $90 million in net cash, and $25 million in minority interest [1][3] Industry and Product Portfolio - **Industry**: Automotive access control systems - **Core Products**: - Vehicle locks - Active tailgates and liftgates - Enhanced locks and keys - Passive entry systems - **Revenue Breakdown**: Approximately 8% of revenue from aftermarket sales [1][3][4] Strategic Initiatives - **Leadership Changes**: New CEO Jen Slater and CFO Matthew Pauli have focused on operational changes and team restructuring [2][4] - **Cultural Shift**: Emphasis on innovation, collaboration, and results-driven performance [5][6] - **Business Operating System**: Implementation of a business operating system to improve margin and cash generation [6][7] Financial Performance - **Q1 FY 2026 Revenue**: $152 million, up 10% year-over-year, outperforming North American automotive production growth of 5% [12] - **Sales Growth**: Continuous growth observed post-chip shortages, with a trailing 12-month sales figure of $578 million [13] - **Gross Profit Margin**: 17.3% for Q1 FY 2026, significantly improved due to price increases and restructuring benefits [14] - **Net Income**: $8.5 million or $2.07 per share for Q1 FY 2026, with adjusted EBITDA of $15.6 million and a 10.2% EBITDA margin [16] Cost Structure and Tariffs - **Cost Management**: Focus on cost structure improvements, with a 15% reduction in headcount year-over-year [14][15] - **Tariff Impact**: Annual tariff costs estimated at $5-7 million, largely offset by price increases [15][34] Future Outlook - **Revenue Projections**: Expected to align with North American automotive production volumes [11] - **Product Development**: Focus on modernizing product offerings, including the development of digital key fobs and power access products [10][11] - **M&A Considerations**: Future M&A opportunities are being evaluated, with a focus on organic growth and capital allocation [18][37] Operational Flexibility - **Manufacturing Footprint**: Operations in both the U.S. and Mexico, with over 90% of products compliant with USMCA [24][28] - **Adaptability**: Ability to adjust manufacturing strategies in response to tariff changes and customer needs [28][29] Key Takeaways - Strattec is undergoing a significant transformation under new leadership, focusing on operational efficiency and product innovation - Financial performance has improved markedly, with strong revenue growth and profitability metrics - The company is well-positioned to adapt to market changes and capitalize on growth opportunities in the automotive sector [18][43]

Company Overview - STRATTEC was founded in 1908 and went public in 1995, with a market capitalization of $277 million as of October 28, 2025 [5] - Institutional ownership is 76%, while insider ownership is 3.6% [5] - The company's revenue for the trailing twelve months (TTM) ending Q1 FY26 was $578.4 million [9] - The company provides highly engineered products for leading OEMs, with sales by product including Door Handles (25%), Power Access (25%), Keys & Locksets (18%), Latches (13%), Other (11%), and Aftermarket (8%) [8, 9] Financial Performance - Revenue has steadily increased from $492.9 million in FY2023 to $578.4 million in TTM Q1 FY26 [14] - Cash from operations has improved significantly, reaching $71.7 million in FY2025 and TTM Q1 FY26 [14] - Gross profit has risen from $42.2 million in FY2023 to $92.0 million in TTM Q1 FY26 [17] - Q1 FY26 net sales increased by $13.3 million, or 9.6%, to $152.4 million compared to $139.1 million in Q1 FY25 [35, 36] - Q1 FY26 gross margin expanded by 370 basis points year-over-year [44] - Net income attributable to STRATTEC was up 130% year-over-year in Q1 FY26 [49] Strategic Initiatives - The company reduced headcount by 15% in FY25, resulting in $5 million in savings [12] - The company captured $8 million in annualized pricing in FY2025 [12] - The company signed a new $40 million revolving credit facility in October 2025, extending the maturity to 2028 [61]

Financial Performance - Net sales for the three months ended September 28, 2025, increased to $152,399 thousand, up from $139,052 thousand for the same period in 2024, representing an increase of 9.6%[13] - Gross profit rose to $26,335 thousand, compared to $18,921 thousand in the prior year, reflecting a significant increase of 39.1%[13] - Net income attributable to Strattec for the three months ended September 28, 2025, was $8,529 thousand, a substantial increase from $3,703 thousand in the same period last year, marking a growth of 130.5%[13] - Earnings per share attributable to Strattec increased to $2.10 (basic) and $2.07 (diluted), compared to $0.92 for both in the prior year[13] - Comprehensive income attributable to Strattec for the three months ended September 28, 2025, was $9,189 thousand, compared to $2,288 thousand in the same period last year, indicating a growth of 302.5%[15] - For the three months ended September 28, 2025, net income attributable to Strattec was $8.529 million, compared to $3.703 million for the same period in 2024, representing a 130.5% increase[33] - Net sales for the first quarter of fiscal 2026 were $152.4 million, an increase of $13.3 million or 10% compared to the prior year[51] - Gross profit improved to $26.3 million with a gross margin of 17.3%, up from 13.6% in the prior year, reflecting a 370 basis point increase[52] - Net income attributable to Strattec was $8.5 million, a 130% increase from $3.7 million in the same quarter last year[50] Assets and Liabilities - Total current assets remained stable at $290,125 thousand as of September 28, 2025, compared to $290,063 thousand at June 29, 2025[16] - Cash and cash equivalents increased to $90,473 thousand at the end of the period, up from $84,579 thousand at the beginning of the period, reflecting a net increase of $5,894 thousand[17] - Total liabilities decreased to $134,278 thousand as of September 28, 2025, down from $145,023 thousand at June 29, 2025[16] - Strattec's retained earnings increased to $277,826 thousand as of September 28, 2025, compared to $269,297 thousand at June 29, 2025, reflecting a growth of 3.3%[16] - The Company had $90.5 million in cash and cash equivalents as of September 28, 2025, with no borrowings outstanding under the $40 million Strattec Credit Facility[58] Expenses and Costs - The Company reported a depreciation expense of $3,785 thousand for the three months ended September 28, 2025, compared to $3,662 thousand in the prior year[17] - Selling, administrative, and engineering expenses were $15.9 million, representing 10.4% of sales, an increase from 10.0% in the prior year[53] - Direct material costs increased by $5.8 million, while labor and overhead costs remained relatively flat, reflecting a $0.1 million increase[52] Tax and Legal Matters - The effective tax rate for the three-month period ended September 28, 2025 was 21.6%, down from 28.6% in the prior year, primarily due to the accrual of foreign income taxes[30][32] - The effective income tax rate decreased to 21.6% in the first quarter of fiscal 2026 from 28.6% in the prior year[56] - The company does not believe it is involved in any legal proceedings that would materially affect its financial statements[67] Credit Facilities and Borrowings - Outstanding borrowings under the Strattec Credit Facility were $0 as of September 28, 2025, while the ADAC-Strattec Credit Facility had outstanding borrowings of $5 million[28] - The average outstanding borrowings under the ADAC-Strattec Credit Facility for the three months ended September 28, 2025 was $6.552 million, with a weighted average interest rate of 7.4%[28] - The Company has a $40 million secured revolving credit facility with BMO Harris Bank N.A., which was amended to extend the maturity to October 2028[26][27] - A new revolving credit agreement was entered into on October 27, 2025, providing a $40 million line of credit maturing in October 2028[59] Share Repurchase and Stock Information - A total of 3,655,322 shares have been repurchased at a cost of approximately $136.4 million since the stock repurchase program began[69] - Currently, 184,073 shares remain available for repurchase under the program[69] - No shares were repurchased during the three-month period ended September 28, 2025[69] Management and Controls - The company maintains effective disclosure controls and procedures as evaluated by management[63] - There were no changes in internal control over financial reporting that materially affected the company during the last fiscal quarter[64] - The Company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-03[23][24] Customer Concentration - Significant customers included General Motors (27% of net sales), Ford (22%), and Stellantis (15%), accounting for 64% of total net sales[44] Other Financial Information - The Company recognized a foreign currency transaction loss of $671,000 for the three months ended September 28, 2025, compared to a gain of $1.005 million in the prior year[37] - The Company’s management fee expense related to the joint venture was $2.737 million for the three months ended September 28, 2025, compared to $2.480 million in the prior year[40] - As of September 28, 2025, there was $1.7 million of unrecognized compensation cost related to non-vested performance stock units (PSUs) and $3.8 million related to non-vested restricted stock awards (RSAs)[35] - Primary working capital as a percentage of net sales was 17% for both Q1 fiscal 2026 and fiscal 2025[61] - Accounts receivable, net was $103 million with a PWC % of 17% as of September 28, 2025[61] - Inventory, net decreased to $62 million, reflecting a PWC % of 10%[61] - Accounts payable decreased to $(61) million, resulting in a PWC % of (10%)[61]

Financial Data and Key Metrics Changes - Revenue grew nearly 10% in the quarter, with gross profit margin expanding by 370 basis points to 17.3% and EBITDA margin expanding by 310 basis points to 10.2% [5][7] - Net income attributable to Strattec Security Corporation increased significantly year over year, with adjusted EBITDA at $15.6 million, representing an adjusted EBITDA margin of 10.2% [9] - Operating cash flow was $11.3 million for the quarter, similar to the first quarter of the prior year, with cash on the balance sheet exceeding $90 million [10] Business Line Data and Key Metrics Changes - Gross profit increased by $7.4 million, or approximately 40%, driven by strategic pricing actions and higher production volumes [7] - Selling, administrative, and engineering expenses rose to $15.9 million, reflecting investments in business transformation [8] Market Data and Key Metrics Changes - The automotive industry faced significant disruptions due to a fire at an aluminum supplier and international trade restrictions affecting semiconductor chip supply, impacting production levels for major customers [12] - The company plans to build finished goods inventory to better serve OEM and aftermarket customers amid these disruptions [13] Company Strategy and Development Direction - The company is focused on modernizing operations through automation and optimizing its footprint, including a sale-leaseback of the Milwaukee facility [14][15] - There is an ongoing effort to expand customer relationships with North American vehicle manufacturers, particularly in power access products and digital keys [31] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the automotive industry's current environment but expressed confidence in the company's ability to manage these issues better than in the past [13] - The company is cautious about the near-term outlook due to the impact of supplier issues and chip shortages, with uncertainty regarding the full-year impact [25] Other Important Information - The company has entered into an amended and restated $40 million revolving credit facility, extending maturity until October 2028 [10] - The company is in the early stages of discussing potential M&A opportunities as part of its long-term growth strategy [11] Q&A Session Summary Question: Updates on ongoing operations review compared to fourth-quarter results - Management discussed advancements in automation and the progression of their transformation efforts [18] Question: CapEx budget for 2026 versus 2025 - The CapEx budget for 2026 is approximately $12.5 million, about 2% of sales, with automation costs having decreased over the years [19] Question: Impact of fire and semiconductor production disruption - Management indicated that the company would be modestly flat or down due to these disruptions, with too much uncertainty to quantify the full-year impact [25] Question: Expected returns on automation investments - Expected payback on automation investments is less than one year, with results anticipated in the second half of the fiscal year [30] Question: Development of relationships with other North American vehicle manufacturers - Management confirmed efforts to expand customer reach but did not provide specific details [31]

Financial Performance - Q1 FY26 revenue increased by $133 million, a 96% increase, reaching $1524 million[6, 18] - Gross margin improved to 173%, a 370 bps increase[6] - Net income increased by 130% year-over-year[31] - Adjusted EBITDA margin expanded by 310 bps year-over-year to 102%[37] Cash Flow and Capitalization - Generated $113 million in operational cash flow in Q1 FY26[6, 40] - Ended the quarter with $905 million in cash on hand[6] - Total debt reduced to $50 million[43] - A new $40 million revolving credit facility was extended to 2028[15, 43] Strategic Initiatives and Challenges - Restructuring actions in Mexico are expected to generate approximately $1 million in annualized savings starting in the latter half of Q2 FY26[7, 14] - Supply chain issues, including aluminum fire and semiconductor chip shortages, are expected to impact Q2 FY26[45, 49]

分组1 - Strattec Security reported quarterly earnings of $2.22 per share, exceeding the Zacks Consensus Estimate of $1.48 per share, and showing a significant increase from $0.92 per share a year ago, resulting in an earnings surprise of +50.00% [1] - The company achieved revenues of $152.4 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.14% and increasing from $139.05 million year-over-year [2] - Strattec Security has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 59.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates of $0.99 for the upcoming quarter and $4.25 for the current fiscal year [7] - The Zacks Industry Rank places the Automotive - Original Equipment sector in the top 30% of over 250 Zacks industries, indicating a favorable environment for Strattec Security [8]