Fox Factory Holding (FOXF) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: N/A
• Average Volume (3M): 615.33K
• Price to Earnings (P/E): 128.4
• Beta (1Y): 0.96
• Revenue Growth: 1.26%
• EPS Growth: -435.73%
• Country: US
• Employees: 4,100
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Auto - Parts
• EPS (TTM): 0.23
• Shares Outstanding: 41,712,400
• 10 Day Avg. Volume: 575,986
• 30 Day Avg. Volume: 615,334
• PEG Ratio: <0.01
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.02
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 2.42
• Enterprise Value/Ebitda: 5.50
• 1Y Price Target: $30.50
• Price Target Upside: 15.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 55 Neutral
• Price Target: $26.00 ▼(-1.37%Downside)

The overall stock score reflects significant financial challenges despite positive cash flow and short-term technical trends. The negative P/E ratio and lack of dividends limit valuation appeal. Earnings call insights underscore growth but highlight substantial financial setbacks. Investors should consider these factors when evaluating potential investment risks and opportunities.

Positive Factors

Cost reduction and margin improvement

Gross margin increased due to cost reduction initiatives, despite lower end consumer demand.

Market diversification

Marucci continued to provide diversification benefit in Q4 as SSG also saw tailwinds from early signs of improving conditions within bike as inventories are 'better in control'.

New product innovation

FOXF is excited about new product innovation launches, including a fork and shock that should begin to contribute and help drive growth.

Negative Factors

End market demand

Continued weak end market demand, particularly in bikes and powered sports, has led to a decrease in price objective due to sector multiples compression.

Retail decline

The company lowered its price objective based on a challenging end market outlook as retail continues to decline, especially in bikes and powered sports.

Stock performance pressure

FOXF shares are under pressure due to multiple quarters of disappointing outlooks and a significant year-to-date pullback.

Fox Factory Holding Business Overview & Revenue Model

Company Description

Fox Factory Holding Corp. is a leading designer, manufacturer, and marketer of performance-defining products and systems for customers worldwide. The company operates primarily in the bicycle and powered vehicle sectors, offering high-performance suspension products, including front forks, rear shocks, and other components for bicycles, off-road vehicles, trucks, and other powered vehicles. Fox Factory's products are known for their quality, innovation, and ability to enhance the performance of the vehicles they are integrated into.

How the Company Makes Money

Fox Factory Holding Corp. generates revenue through the sale of its high-performance suspension products and systems to a diverse customer base, including original equipment manufacturers (OEMs) and aftermarket retailers. The company serves the bicycle and powered vehicle industries, providing components that are critical for vehicle performance and user experience. Key revenue streams include sales of suspension products for mountain bikes, off-road vehicles, and trucks. Fox Factory also benefits from strategic partnerships and collaborations with leading OEMs, enhancing its market presence and driving sales. Additionally, the company invests in research and development to innovate and expand its product offerings, ensuring sustained demand and revenue growth.

Fox Factory Holding Financial Statement Overview

Summary

Fox Factory Holding is facing a challenging financial period with declining revenue and profitability impacting its income statement. While the balance sheet remains stable with low leverage, the recent reduction in equity raises concerns. Positive cash flow indicates resilience, but sustaining this requires improved profitability.

Income Statement

The TTM (Trailing-Twelve-Months) results show a significant decline in profitability, with a negative EBIT and EBITDA margin indicating operational challenges. Revenue has decreased when compared to previous years, reflecting potential demand issues. The net profit margin has also turned negative, indicating losses. However, gross profit margin remains positive, suggesting that core production efficiency may still be intact.

Balance Sheet

The balance sheet indicates a strong equity position with a healthy equity ratio, showing financial stability. The debt-to-equity ratio is low, suggesting low leverage and reduced financial risk. However, the substantial reduction in stockholders’ equity over the past year indicates financial strain. Return on equity has turned negative, reflecting recent net losses.

Cash Flow

The company has managed to maintain positive free cash flow, indicating effective cash management despite reduced profitability. However, the operating cash flow to net income ratio is high due to low net income, and free cash flow has declined compared to previous years. This suggests potential challenges in sustaining cash flow levels if profitability does not improve.

Breakdown
TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Income Statement		Total Revenue
1.42B	1.39B	1.46B	1.60B	1.30B	890.55M
	Gross Profit
424.56M	423.58M	464.81M	531.34M	432.33M	289.55M
	EBIT
-199.93M	57.67M	160.09M	246.70M	196.91M	114.15M
	EBITDA
-118.09M	147.98M	216.59M	291.94M	196.91M	147.75M
	Net Income Common Stockholders
-249.65M	6.55M	120.85M	205.28M	163.82M	90.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
71.67M	71.67M	83.64M	145.25M	179.69M	245.76M
	Total Assets
2.23B	2.23B	2.24B	1.62B	1.52B	1.29B
	Total Debt
721.74M	721.74M	757.64M	210.31M	378.45M	389.59M
	Net Debt
650.07M	650.07M	674.00M	65.06M	198.77M	143.82M
	Total Liabilities
1.03B	1.03B	1.02B	496.95M	621.65M	567.39M
	Stockholders Equity
1.20B	1.20B	1.22B	1.12B	894.08M	719.17M
Cash Flow		Free Cash Flow
82.20M	87.79M	131.89M	143.39M	10.44M	25.97M
	Operating Cash Flow
123.16M	131.83M	178.74M	187.09M	65.29M	82.72M
	Investing Cash Flow
-68.17M	-76.29M	-750.40M	-44.73M	-106.73M	-388.52M
	Financing Cash Flow
-56.09M	-67.33M	508.98M	-179.14M	-24.10M	506.72M

Fox Factory Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOXF, the sentiment is Positive. The current price of 26.36 is above the 20-day moving average (MA) of 25.17, above the 50-day MA of 22.77, and below the 200-day MA of 30.28, indicating a neutral trend. The MACD of 0.92 indicates Negative momentum. The RSI at 63.03 is Neutral, neither overbought nor oversold. The STOCH value of 86.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FOXF.

Fox Factory Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLOW	79 Outperform	$640.12M	10.20	26.52%	4.28%	1.14%	127.04%
XPEL	77 Outperform	$1.00B	21.35	22.48%	―	8.37%	-1.37%
SMP	73 Outperform	$642.07M	11.31	9.00%	4.11%	13.53%	-4.76%
THRM	71 Outperform	$842.47M	16.99	7.74%	―	-0.51%	9.10%
ADNT	64 Neutral	$1.32B	805.10	-14.33%	―	-5.33%	-292.58%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
FOXF	55 Neutral	$1.09B	128.36	-23.41%	―	1.26%	-435.73%

Fox Factory Holding Corporate Events

Fox Factory Holding Holds Annual Meeting, Elects Directors

On May 9, 2025, Fox Factory Holding held its Annual Meeting, where stockholders elected Thomas E. Duncan and Jean H. Hlay as Class III directors for a three-year term ending in 2028. Additionally, the appointment of Grant Thornton LLP as independent public accountants for fiscal year 2025 was ratified, and the executive compensation package was approved on an advisory basis.