Discounted Cash Flow (DCF) Analysis Unlevered

Strattec Security Corporation (STRT)

$22.85

+0.05 (+0.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 34.76 | 22.85 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	487.01	385.30	485.29	452.27	492.95	501.89	511	520.27	529.71	539.32
Revenue (%)
EBITDA	30.22	12.13	55.10	28.88	10.78	29.39	29.92	30.46	31.02	31.58
EBITDA (%)
EBIT	13.06	-7.20	35.31	9.50	-6.71	8.86	9.02	9.19	9.35	9.52
EBIT (%)
Depreciation	17.16	19.33	19.79	19.38	17.49	20.53	20.90	21.28	21.66	22.06
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	7.81	11.77	14.46	8.77	20.57	13.80	14.06	14.31	14.57	14.83
Total Cash (%)
Account Receivables	84.23	41.96	69.90	75.83	89.81	77.87	79.28	80.72	82.18	83.67
Account Receivables (%)
Inventories	47.26	54.40	70.86	80.48	77.60	72.23	73.54	74.88	76.24	77.62
Inventories (%)
Accounts Payable	41.89	18.55	36.73	43.95	57.93	42.61	43.39	44.17	44.97	45.79
Accounts Payable (%)
Capital Expenditure	-17.45	-12.38	-8.93	-14.19	-17.37	-15.36	-15.63	-15.92	-16.21	-16.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 22.85
Beta	1.175
Diluted Shares Outstanding	3.92
Cost of Debt
Tax Rate	13.02
After-tax Cost of Debt	6.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.141
Total Debt	13
Total Equity	89.59
Total Capital	102.59
Debt Weighting	12.67
Equity Weighting	87.33
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	487.01	385.30	485.29	452.27	492.95	501.89	511	520.27	529.71	539.32
EBITDA	30.22	12.13	55.10	28.88	10.78	29.39	29.92	30.46	31.02	31.58
EBIT	13.06	-7.20	35.31	9.50	-6.71	8.86	9.02	9.19	9.35	9.52
Tax Rate	37.88%	27.90%	35.64%	24.22%	13.02%	27.73%	27.73%	27.73%	27.73%	27.73%
EBIAT	8.11	-5.19	22.73	7.20	-5.83	6.40	6.52	6.64	6.76	6.88
Depreciation	17.16	19.33	19.79	19.38	17.49	20.53	20.90	21.28	21.66	22.06
Accounts Receivable	-	42.28	-27.95	-5.93	-13.98	11.94	-1.41	-1.44	-1.46	-1.49
Inventories	-	-7.14	-16.46	-9.62	2.88	5.36	-1.31	-1.33	-1.36	-1.38
Accounts Payable	-	-23.34	18.18	7.22	13.98	-15.31	0.77	0.79	0.80	0.82
Capital Expenditure	-17.45	-12.38	-8.93	-14.19	-17.37	-15.36	-15.63	-15.92	-16.21	-16.50
UFCF	7.82	13.55	7.35	4.07	-2.84	13.57	9.83	10.01	10.19	10.38
WACC
PV UFCF						12.37	8.18	7.59	7.05	6.54
SUM PV UFCF										41.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.67
Free cash flow (t + 1)	10.59
Terminal Value	138.04
Present Value of Terminal Value	87.01

Intrinsic Value

Enterprise Value	128.74
Net Debt	-7.57
Equity Value	136.31
Shares Outstanding	3.92
Equity Value Per Share	34.76