Fox Factory Holding (FOXF) AI Stock Analysis

• Market Cap: $683.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 6.23%
• EPS Growth: -2508.93%
• Country: US
• Employees: 4,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.20
• Shares Outstanding: 41,802,280
• 10 Day Avg. Volume: 1,054,660
• 30 Day Avg. Volume: 1,090,514
• PEG Ratio: <0.01
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 27.03
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: -3.26
• 1Y Price Target: $22.50
• Price Target Upside: 37.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): $1.42B

• Rating: 47 Neutral
• Price Target: $16.50 ▲(0.79% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held down primarily by deteriorated financial performance (large recent loss and weaker free cash flow) and a clearly bearish technical trend (price below key moving averages with negative MACD). Guidance and governance initiatives provide some support via targeted cost savings and expected margin improvement, but near-term revenue headwinds and loss-making results keep the overall profile below average.

Positive Factors

Product & OEM Wins

Securing OEM programs across motorcycles, RVs, EVs and a second Ford program builds durable, contracted OE revenue and deepens strategic customer relationships. Strong aftermarket product launches (Live Valve) support higher-margin recurring parts and service revenue, strengthening long-term revenue mix and brand leadership.

Cost Savings & Margin Plan

Realized Phase 1 savings and a clear Phase 2 target create a concrete roadmap to restore margins and cash flow. Combined with lower guided CapEx (~2% of revenue) and targeted SG&A reductions, these structural cost programs can sustainably improve operating leverage if executed, boosting free cash flow over multiple quarters.

Improved Leverage & Cash Cushion

Dramatically lower leverage provides balance-sheet flexibility to pursue transformation without immediate financing pressure. Positive operating and free cash flow, even if diminished, offer a cushion to fund restructuring, accelerate debt paydown and support targeted capital allocation, reducing long-term financial risk.

Negative Factors

Large Goodwill Impairment

A $295M goodwill write-down is a persistent signal that past acquisitions or goodwill assumptions underperformed; it permanently reduces equity and future GAAP earnings comparability. This can constrain strategic flexibility, worsen reported returns and erode investor confidence until core earnings sustainably recover.

Sharp Profitability Decline

A swing to a deep net loss despite revenue growth highlights structural cost, operating or non-operating issues that impair earnings power. Persistently negative ROE and volatile free cash flow conversion raise concerns about management's ability to translate top-line demand into durable profitability without material structural changes.

Portfolio Rationalization Risk

Divesting operations to boost margins reduces revenue base and concentrates the business, increasing dependency on remaining segments. Realizing targeted debt reduction and margin gains depends on execution; missteps could shrink scale, reduce diversification and prolong recovery of absolute revenue and cash-flow growth.

Fox Factory Holding Business Overview & Revenue Model

Company Description

Fox Factory Holding Corp. designs, engineers, manufactures, and markets ride dynamics products worldwide. The company offers mid-end and high-end front fork and rear suspension products for mountain bikes, road bikes, and e-bikes; and powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks. It also provides mountain and road bike wheels, and other performance cycling components, including cranks, chain rings, pedals, bars, stems, and seat posts, as well as sells aftermarket products to dealers and distributors. The company offers powered vehicles under the FOX, BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Tuscany, Outside Van, and SCA brands; and mountain bikes and road bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is headquartered in Duluth, Georgia.

How the Company Makes Money

Fox Factory generates revenue through multiple channels, primarily by selling its suspension products to OEMs and the aftermarket. The company has established strong relationships with leading bicycle and off-road vehicle manufacturers, allowing it to secure contracts for supplying custom-designed products. Additionally, Fox Factory benefits from a robust aftermarket segment, where it sells directly to consumers and retailers. Key revenue streams include sales of suspension systems, components, and accessories. The company's focus on innovation and performance has led to partnerships with prominent brands, enhancing its market presence and contributing to its revenue growth. Seasonal demand in the cycling and powersports industries also plays a significant role in its earnings, as sales tend to peak during specific times of the year.

Fox Factory Holding Financial Statement Overview

Summary

Overall fundamentals are pressured by a sharp profitability collapse culminating in a large 2026 loss (income statement weakness), despite steadier gross margins. Offsetting factors include positive operating/free cash flow (though down sharply) and reduced leverage in 2026, which helps liquidity and financial risk, but negative ROE and declining FCF signal elevated execution risk.

Income Statement

Profitability has deteriorated sharply. After solid margins in 2020–2023 (net profit margin peaking around ~13% in 2021–2022), 2025 slipped to near break-even, and 2026 turned into a large loss (net profit margin about -37%) despite revenue rebounding strongly (+56% in 2026 annual data). Gross margin has been relatively steady (~30–33%), suggesting the pressure is coming from operating costs and/or non-operating items rather than core product profitability.

Balance Sheet

Leverage looks very manageable in 2026 (debt-to-equity ~0.04) versus materially higher levels in 2023–2025 (~0.60+), which reduces financial risk. However, the large 2026 loss drove deeply negative return on equity, signaling weak current earnings power and raising questions about asset utilization and the sustainability of equity returns even with lower debt.

Cash Flow

Cash generation remains positive with operating cash flow and free cash flow still positive in 2026, which helps cushion the earnings downturn. That said, free cash flow fell significantly in 2026 (down ~68% year over year), and cash conversion versus profits is not strong as results swung to a loss; overall cash flow quality is mixed and volatility has increased compared with 2022–2023.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.47B	1.39B	1.46B	1.60B	1.30B
Gross Profit	443.25M	423.58M	464.81M	531.34M	432.33M
EBITDA	-430.31M	139.52M	216.59M	291.94M	239.97M
Net Income	-544.58M	6.55M	120.85M	205.28M	163.82M
Balance Sheet
Total Assets	1.67B	2.23B	2.24B	1.62B	1.52B
Cash, Cash Equivalents and Short-Term Investments	58.01M	71.67M	83.64M	145.25M	179.69M
Total Debt	779.55M	721.74M	757.64M	210.31M	387.55M
Total Liabilities	1.00B	1.03B	1.02B	496.95M	621.65M
Stockholders Equity	670.18M	1.20B	1.22B	1.12B	894.08M
Cash Flow
Free Cash Flow	26.95M	87.79M	131.89M	143.39M	10.44M
Operating Cash Flow	60.92M	131.83M	178.74M	187.09M	65.29M
Investing Cash Flow	-33.97M	-76.29M	-750.40M	-44.73M	-106.73M
Financing Cash Flow	-40.01M	-67.33M	508.98M	-179.14M	-24.10M

Fox Factory Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 16.37 is below the 20-day moving average (MA) of 18.54, below the 50-day MA of 18.53, and below the 200-day MA of 22.76, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 34.59 is Neutral, neither overbought nor oversold. The STOCH value of 26.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FOXF.

Fox Factory Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPEL	71 Outperform	$1.07B	26.95	19.69%	―	10.29%	-3.90%
LKQ	68 Neutral	$7.82B	12.73	9.42%	4.00%	-3.71%	-0.27%
DORM	65 Neutral	$3.23B	18.56	14.34%	―	7.94%	34.84%
THRM	62 Neutral	$882.52M	60.64	4.44%	―	-0.10%	-53.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SMP	53 Neutral	$804.78M	10.25	11.76%	3.32%	23.96%	11.01%
FOXF	47 Neutral	$683.47M	-1.34	-23.94%	―	6.23%	-2508.93%

Fox Factory Holding Corporate Events

Fox Factory Adds Director, Forms Transformation Oversight Committee

Fox Factory Holding Corp. disclosed that, pursuant to a cooperation agreement with Engine Capital L.P. and its affiliates dated February 8, 2026, its board of directors voted on February 13, 2026, to expand the board from seven to eight members and appointed Alan L. Bazaar as a Class II director with a term running until the 2027 annual meeting. The board also created a Transformation Committee to oversee management’s initiatives on profitability, cost-cutting, and margin improvement, with Bazaar joining this body as well as the Compensation and Nominating and Corporate Governance committees, signaling intensified governance focus on operational efficiency.

The company noted that Bazaar’s appointment was not driven by any undisclosed arrangements beyond the cooperation agreement and that there are currently no related-party transactions requiring disclosure under regulatory standards. He will receive standard, pro-rated compensation and benefits afforded to non-employee directors, including equity-based awards, expense reimbursement, and indemnification protections, aligning his incentives with existing board members while the new committee structure aims to enhance financial performance oversight.

The most recent analyst rating on (FOXF) stock is a Sell with a $17.50 price target. To see the full list of analyst forecasts on Fox Factory Holding stock, see the FOXF Stock Forecast page.

Fox Factory, Engine Capital Strike Governance and Oversight Pact

On February 9, 2026, Fox Factory announced a strategic board refresh and a cooperation agreement with activist investor Engine Capital, following discussions aimed at boosting operational performance and profitability. The company will appoint two new independent directors, including investor Alan L. Bazaar, and create a Board-level Transformation Committee to oversee initiatives targeting operational excellence, margin improvement, working capital efficiency and disciplined capital allocation, while long-serving directors including Chairman Dudley Mendenhall and Ted Waitman plan to retire at the 2026 annual meeting, signaling a governance shift that could materially influence execution and long-term shareholder value.

The Transformation Committee, chaired by Sidney Johnson and comprising the two new directors plus another independent member, is intended to add oversight and accountability as management carries out a comprehensive operational review. The cooperation agreement with Engine Capital includes customary standstill, voting and committee rights and underscores a collaborative stance between the board and the activist investor as Fox Factory seeks to sharpen execution, manage costs more tightly and translate its brand strength into improved financial performance for stakeholders.

The most recent analyst rating on (FOXF) stock is a Sell with a $17.50 price target. To see the full list of analyst forecasts on Fox Factory Holding stock, see the FOXF Stock Forecast page.