DCF Tool

STRT

Strattec Security Corp. – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
STRATTEC Security Corporation delivers a comprehensive range of "Smart" Vehicle Power Access and Electronic and Security Solutions. The company's leading portfolio of products and technologies has enabled STRATTEC to grow and thrive over its 110 year history, serving the Automotive Industry & Beyond.
Analysis Results
Intrinsic Value $349.36
Latest Price $20.80
Relative Value 94% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 33.3 32.1
2024 36.8 34.4
2025 40.8 36.7
2026 45.1 39.3
2027 50.0 42.0
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 1500 million. This corresponds to a present value of 1220 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 184 million. Adding in the terminal value gives a total present value of 1400 million.

There are presently 4.01 million outstanding shares, so the intrinsic value per share is 349.36.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 188,232,000
Current Cash 8,774,000
Current Liabilities 81,475,000
Current Debt 0
Non-Cash Working Capital (NCWC) 97,983,000
Change in NCWC 15,116,000
EBIT 9,078,000
Tax Provision 420,000
Depreciation and Amortization 19,379,000
Capital Expenditure -14,188,000
Unlevered Free Cash Flow 28,974,142
Current Assets 174,904,000
Current Cash 14,465,000
Current Liabilities 77,572,000
Current Debt 0
Non-Cash Working Capital (NCWC) 82,867,000
Change in NCWC 17,413,000
EBIT 36,475,000
Tax Provision 5,111,000
Depreciation and Amortization 19,786,000
Capital Expenditure -8,929,000
Unlevered Free Cash Flow 59,419,825
Current Assets 125,368,000
Current Cash 11,774,000
Current Liabilities 48,140,000
Current Debt 0
Non-Cash Working Capital (NCWC) 65,454,000
Change in NCWC -4,106,000
EBIT -8,871,000
Tax Provision -2,266,000
Depreciation and Amortization 19,329,000
Capital Expenditure -12,381,000
Unlevered Free Cash Flow -6,029,000
Current Assets 156,632,000
Current Cash 7,809,000
Current Liabilities 79,263,000
Current Debt 0
Non-Cash Working Capital (NCWC) 69,560,000
Change in NCWC -4,660,000
EBIT 13,397,000
Tax Provision -7,740,000
Depreciation and Amortization 17,159,000
Capital Expenditure -17,453,000
Unlevered Free Cash Flow 8,443,000
Current Assets 151,103,000
Current Cash 8,090,000
Current Liabilities 68,793,000
Current Debt 0
Non-Cash Working Capital (NCWC) 74,220,000
Change in NCWC 21,471,000
EBIT 17,807,000
Tax Provision 2,070,000
Depreciation and Amortization 14,585,000
Capital Expenditure -24,134,000
Unlevered Free Cash Flow 27,646,251
Current Assets 129,005,000
Current Cash 8,361,000
Current Liabilities 67,895,000
Current Debt 0
Non-Cash Working Capital (NCWC) 52,749,000
Change in NCWC -2,010,000
EBIT 14,368,000
Tax Provision 4,284,000
Depreciation and Amortization 11,418,000
Capital Expenditure -37,010,000
Unlevered Free Cash Flow -16,988,575
Current Assets 134,451,000
Current Cash 15,477,000
Current Liabilities 64,215,000
Current Debt 0
Non-Cash Working Capital (NCWC) 54,759,000
Change in NCWC 7,028,000
EBIT 18,673,000
Tax Provision 5,068,000
Depreciation and Amortization 10,121,000
Capital Expenditure -23,496,000
Unlevered Free Cash Flow 7,394,537
Current Assets 138,161,000
Current Cash 25,695,000
Current Liabilities 64,735,000
Current Debt 0
Non-Cash Working Capital (NCWC) 47,731,000
Change in NCWC -2,889,000
EBIT 30,338,000
Tax Provision 9,382,000
Depreciation and Amortization 8,815,000
Capital Expenditure -26,097,000
Unlevered Free Cash Flow 1,778,967
Current Assets 135,639,000
Current Cash 19,756,000
Current Liabilities 65,263,000
Current Debt 0
Non-Cash Working Capital (NCWC) 50,620,000
Change in NCWC 12,903,000
EBIT 27,481,000
Tax Provision 8,674,000
Depreciation and Amortization 8,267,000
Capital Expenditure -12,812,000
Unlevered Free Cash Flow 27,268,848
Current Assets 106,499,000
Current Cash 20,307,000
Current Liabilities 50,725,000
Current Debt 2,250,000
Non-Cash Working Capital (NCWC) 37,717,000
Change in NCWC 10,886,000
EBIT 18,707,000
Tax Provision 5,366,000
Depreciation and Amortization 7,490,000
Capital Expenditure -12,515,000
Unlevered Free Cash Flow 18,620,860

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