Since launch, our goal with Sophon Microcap Atlas has been to build the definitive research hub for underfollowed sub-$500M companies. Each month we’re adding deep-dive coverage, proprietary scoring frameworks, and differentiated insights you won’t find anywhere else. With every report, the value of the platform compounds — but so does the subscription price.
We’ve structured it this way deliberately: to reward early adopters who believe in what we’re building. Subscribers who joined at launch are still paying their original rate, and they’ll keep that price for life. By contrast, new readers coming in today are already paying more than they did six months ago.
That’s by design. We’re investing heavily in research, and we want to keep the economics aligned with our most loyal readers.
When you join Sophon Microcap Atlas, your subscription price is locked in for life. We raise rates by $15 every two months to reflect the growing value of our research library, but early subscribers keep their lower rate forever. On November 1, the price rises to $60/month or $540/year — lock in now at $45/month or $400/year and you’ll still be paying that rate years from now, even when the service is worth thousands.
Disclaimer: Not financial advice
View: Pass
Sophon Score: 63/100
Strattec is a classic small cap industrial turnaround. It has a clean balance sheet, a focused product set, incumbent customer positions and visible levers to improve margins and cash flow. It also carries concentrated customer risk, exposure to a secular tech shift toward digital access, and sensitivity to tariffs. The next several quarters should clarify whether the gains reported in FY25 are the start of a durable re rating or a temporary cycle aided by one time effects.
Strattec Security is a focused, low-profile industrial business that does one thing well. The company makes the hardware that let people open and operate vehicles: mechanical locks and locksets, keys, electronic fobs, latches, etc.
That narrow focus is a strength and a weakness. It creates deep technical competence and long product lifecycles, but it leaves the company highly exposed to shifts in vehicle design, customer sourcing and North American production cycles.
In FY25 Strattec reported $565M in revenue, up roughly 5% YoY. Net income was $19M, a net margin of 3.3%, while GMs improved to 15% after a program of pricing and restructuring. Q4 gross reached ~16.7%, showing the early payoff of the cost actions. On the cash front the company generated CFO of $71.7M and FCF of $64.5m in FY25, with the large working capital releases and one off preproduction recoveries responsible for a significant portion of that number. The reported balance sheet shows ~$85M of cash and only ~$8M of debt, leaving the company largely net cash positive and able to fund its modernization plans without immediate capital markets action.
Keep reading with a 7-day free trial
Subscribe to Sophon Microcap Atlas to keep reading this post and get 7 days of free access to the full post archives.