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Fox Factory Holding (FOXF)
:FOXF
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Fox Factory Holding
(NASDAQ:FOXF)
65Neutral
Positive Factors
Financial Performance
Fourth quarter earnings per share were higher than expected, driven by better performance in the legacy bike and Powered Vehicle Group segments.
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
Market Demand
FOXF expects the overall powered sports market to remain weak and PVG to be relatively flat, with current EBITDA margins in the low teens.
Fox Factory Holding (FOXF) vs. S&P 500 (SPY)
Market Cap
$1.03B
Dividend YieldN/A
Average Volume (3M)607.78K
Price to Earnings (P/E)158.1
Beta (1Y)0.91
Revenue Growth-4.80%
EPS Growth-94.50%
CountryUS
Employees4,300
SectorConsumer Cyclical
Sector Strength51
IndustryVehicles
Share Statistics
EPS (TTM)0.16
Shares Outstanding41,683,907
10 Day Avg. Volume672,863
30 Day Avg. Volume607,778
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.74
Price to Cash Flow (P/CF)3.20
P/FCF Ratio3.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.20Price Target Upside37.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Fox Factory Holding Business Overview & Revenue Model
Company DescriptionFox Factory Holding Corp (FOXF) is a leading designer, manufacturer, and marketer of high-performance suspension products and systems for bicycles, on-road vehicles with off-road capabilities, off-road vehicles, and specialty vehicles. The company primarily operates in two segments: Powered Vehicles and Specialty Sports. The Powered Vehicles Group (PVG) focuses on products for off-road vehicles, motorcycles, all-terrain vehicles (ATVs) and utility terrain vehicles (UTVs), while the Specialty Sports Group (SSG) is dedicated to the design and manufacture of suspension products for mountain bikes. Fox Factory Holding is recognized for its premium brands, including FOX, Marzocchi, Race Face, and Easton Cycling, which are esteemed in their respective markets for innovation and quality.
How the Company Makes MoneyFox Factory Holding Corp generates revenue through the design, manufacture, and sale of its high-performance suspension products and systems. The company's primary revenue streams are the sale of suspension products for bicycles and powered vehicles. These sales occur through a combination of original equipment manufacturer (OEM) partnerships and aftermarket channels. OEM partnerships with leading vehicle manufacturers allow Fox Factory to provide customized suspension solutions that are integrated into new vehicles. Aftermarket sales target consumers looking to upgrade or replace their current suspension systems. The company also benefits from its strong brand presence and reputation for quality, which drive demand and enable premium pricing. In addition, strategic acquisitions have expanded its product offerings and market reach, contributing further to its revenue growth.
Fox Factory Holding Financial Statement Overview
Summary
Fox Factory Holding demonstrates a mixed financial performance. While the income statement reflects challenges in revenue growth and profit margins, the balance sheet shows a stable equity position with manageable debt levels. The cash flow statement underscores strong operating cash generation. The company should focus on improving revenue growth and profitability to strengthen its financial position further.Income Statement
Fox Factory Holding experienced fluctuating revenue with recent declines, showing a negative revenue growth rate. Gross and net profit margins have decreased over time, indicating pressure on profitability. However, the company maintains a reasonable EBIT and EBITDA margin, suggesting that operational efficiency remains relatively robust.65
Positive
Balance Sheet
The balance sheet reflects moderate financial stability, with a decreasing debt-to-equity ratio and a consistent equity ratio. The return on equity has declined, pointing to reduced profitability for shareholders. Overall, the company has maintained a stable equity position, despite some fluctuations in total assets and liabilities.70
Positive
Cash Flow
Fox Factory Holding shows strong operating cash flow relative to net income, indicating effective cash generation from its operations. Free cash flow has shown volatility, but the company has managed to maintain a positive free cash flow to net income ratio. Despite fluctuations in investing and financing activities, the cash flow position remains relatively stable.75
Positive
| Breakdown | ||||
| Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.39B | 1.46B | 1.60B | 1.30B | 890.55M | Gross Profit |
| 423.58M | 464.81M | 531.34M | 432.33M | 289.55M | EBIT |
| 57.67M | 160.09M | 246.70M | 196.91M | 114.15M | EBITDA |
| 57.67M | 216.59M | 291.94M | 196.91M | 147.75M | Net Income Common Stockholders |
| 6.55M | 120.85M | 205.28M | 163.82M | 90.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 71.67M | 83.64M | 145.25M | 179.69M | 245.76M | Total Assets |
| 2.23B | 2.24B | 1.62B | 1.52B | 1.29B | Total Debt |
| 24.29M | 757.64M | 210.31M | 378.45M | 389.59M | Net Debt |
| -47.39M | 674.00M | 65.06M | 198.77M | 143.82M | Total Liabilities |
| 1.03B | 1.02B | 496.95M | 621.65M | 567.39M | Stockholders Equity |
| 1.20B | 1.22B | 1.12B | 894.08M | 719.17M |
| Cash Flow | Free Cash Flow | |||
| 87.79M | 131.89M | 143.39M | 10.44M | 25.97M | Operating Cash Flow |
| 131.83M | 178.74M | 187.09M | 65.29M | 82.72M | Investing Cash Flow |
| -76.29M | -750.40M | -44.73M | -106.73M | -388.52M | Financing Cash Flow |
| -67.33M | 508.98M | -179.14M | -24.10M | 506.72M |
Fox Factory Holding Technical Analysis
Negative
24.80
Price Trends
27.21
Negative
30.16
Negative
36.95
Negative
Market Momentum
-0.60
Positive
41.09
Neutral
17.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOXF, the sentiment is Negative. The current price of 24.8 is below the 20-day moving average (MA) of 26.08, below the 50-day MA of 27.21, and below the 200-day MA of 36.95, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 41.09 is Neutral, neither overbought nor oversold. The STOCH value of 17.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FOXF.
Fox Factory Holding Risk Analysis
Fox Factory Holding disclosed 63 risk factors in its most recent earnings report. Fox Factory Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fox Factory Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.29B | 16.03 | 10.42% | 4.79% | -1.15% | 121.43% | |
72 Outperform | $25.73B | 30.36 | -680.23% | ― | 2.22% | 12.78% | |
68 Neutral | $3.06B | 7.03 | 14.19% | 2.88% | -11.13% | -31.78% | |
65 Neutral | $1.03B | 158.06 | 0.54% | ― | -4.80% | -94.50% | |
62 Neutral | $4.29B | 21.39 | 5.13% | 2.43% | -8.45% | -25.41% | |
59 Neutral | $12.44B | 10.63 | 2.89% | 3.66% | 1.52% | -17.39% | |
53 Neutral | $2.37B | 21.70 | 8.18% | 6.24% | -19.69% | -77.72% |
* Consumer Cyclical Sector Average
Performance Comparison
FOXF
Fox Factory Holding
24.80
-22.80
-47.90%
LCII
LCI Industries
89.79
-15.80
-14.96%
HOG
Harley-Davidson
24.56
-15.30
-38.38%
MTD
Mettler-Toledo
1,230.25
-75.92
-5.81%
PII
Polaris
42.33
-44.21
-51.09%
THO
Thor Industries
80.59
-20.57
-20.33%
Fox Factory Holding Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -2.67% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in cost reduction, new customer wins, and segment growth. However, challenges in the automotive and power sports sectors, along with potential tariff impacts, weigh on the outlook. Despite positive strategic initiatives, the decline in net income and adjusted net income reflects ongoing challenges.Highlights
Cost Reduction Initiatives and Debt Paydown
Fox Factory implemented a $25 million cost reduction initiative and successfully drove improvements in working capital, resulting in a $63 million debt paydown during the fourth quarter.
New OEM Customer Wins
The company expanded its customer base by winning new OEM customers such as BMW, Ducati, and Triumph, contributing to potential offsetting declines in other areas of power sports.
Improved Adjusted EBITDA Margins
Both the Aftermarket Applications Group (AAG) and the Powered Vehicle Group (PVG) demonstrated sequential adjusted EBITDA margin improvements of 250 basis points and 310 basis points, respectively.
Marucci Segment Growth and MLB Partnership
The SSG segment showed a 31.3% increase in net sales driven by Marucci, and the company began its role as MLB's official bat partner, signaling potential for future growth.
Strong Performance in Aftermarket Components
Fox Factory's aftermarket components business experienced sustained growth, particularly in wheels and lift kits, with record sales in several product lines during the holidays.
Lowlights
Challenges in the Automotive Sector
The automotive sector faced headwinds from ongoing OEM production issues, with growth more subdued in the premium truck category as consumers remained conservative.
Power Sports Sector Headwinds
The power sports sector continued to experience challenging conditions, with OEMs aggressively managing production levels due to dealer inventory and sell-through issues.
Impact of Tariffs and Inflationary Pressures
The new administration's regulatory changes, including tariffs, create potential inflationary pressures that could affect consumers and OEM partners, posing headwinds for the industry.
Decline in Net Income and Adjusted Net Income
Net income for fiscal 2024 decreased to $6.6 million from $120.8 million the previous year, and adjusted net income dropped to $55.4 million from $167.5 million.
Company Guidance
In the call, Fox Factory Holding Corp. provided guidance for fiscal 2025, anticipating net sales in the range of $1.385 billion to $1.485 billion and adjusted earnings per diluted share between $1.60 and $2.60. The company is focusing on a $25 million cost reduction initiative, expected to significantly impact the second half of 2025. Key metrics highlighted include a 6.1% increase in fourth-quarter net sales to $352.8 million, a gross margin increase of 120 basis points to 28.9%, and a $63 million debt paydown. Segment performance varied, with growth anticipated in the Aftermarket Applications Group (AAG) and the Marucci brand, while the Powered Vehicle Group (PVG) is expected to remain flat or slightly down. The company continues to navigate challenging market conditions, with strategic initiatives aimed at improving profitability and operational efficiency.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.