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Fox Factory Holding (FOXF)
NASDAQ:FOXF
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Fox Factory Holding
(NASDAQ:FOXF)
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Rating:51Neutral
Price Target:
$27.00
▲(21.57% Upside)
Fox Factory Holding's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and declining revenue growth. Technical analysis indicates bearish momentum, and valuation metrics are weak due to negative earnings. The earnings call provides some optimism with sales growth and operational improvements, but increased tariff costs and net income decline remain concerns.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong demand for Fox Factory's products, suggesting a robust market position and potential for continued expansion.
Operational Improvements
Improved EBITDA margins reflect successful cost management and operational efficiency, enhancing long-term profitability and financial health.
Innovation and Product Development
A strong emphasis on innovation ensures Fox Factory remains competitive, sustaining demand for its products and supporting long-term growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues, such as negative net profit margins, could hinder reinvestment and growth, impacting long-term financial stability.
Tariff Costs Impact
Rising tariff costs pressure margins and profitability, potentially affecting pricing strategies and competitive positioning over the long term.
Net Income Decline
Declining net income reflects challenges in maintaining profitability, which could limit financial flexibility and investment capacity in the future.
Fox Factory Holding (FOXF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$967.68M
Dividend YieldN/A
Average Volume (3M)477.32K
Price to Earnings (P/E)128.4
Beta (1Y)0.99
Revenue Growth7.16%
EPS Growth-720.80%
CountryUS
Employees4,100
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.40
Shares Outstanding41,800,556
10 Day Avg. Volume494,223
30 Day Avg. Volume477,320
Financial Highlights & Ratios
PEG Ratio-2.03
Price to Book (P/B)1.05
Price to Sales (P/S)0.90
P/FCF Ratio14.32
Enterprise Value/Market Cap1.87
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit4.14
Enterprise Value/Ebitda-15.59
Forecast
1Y Price Target
$30.40Price Target Upside36.88% Upside
Rating ConsensusHold
Number of Analyst Covering5
Fox Factory Holding Business Overview & Revenue Model
Company DescriptionFox 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 MoneyFox Factory generates revenue through the sale of its high-performance suspension products across several key segments, including cycling, powersports, and automotive. The company earns money primarily by selling its products directly to consumers, through retail partners, and via OEM (original equipment manufacturer) contracts with vehicle manufacturers. Significant revenue streams come from partnerships with major brands in the cycling and motorsport industries, which help expand its market reach and enhance brand visibility. Additionally, Fox Factory benefits from a strong focus on innovation and product development, allowing it to maintain premium pricing and strong demand for its advanced technology products.
Fox Factory Holding Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a strong performance in terms of net sales growth and operational improvements, particularly in cost reduction and segment performance. However, significant challenges remain, particularly with increased tariff costs impacting margins and net income. The sentiment is cautiously optimistic about future growth, supported by product innovation and strategic initiatives.Q2-2025 Updates
Positive Updates
Strong Net Sales Growth
Fox Factory reported $375 million in net sales for Q2 2025, a 7.6% increase year-over-year, with growth across Powered Vehicles Group, Aftermarket Applications Group, and Specialty Sports Group.
Improved Adjusted EBITDA Margin
The company achieved a consolidated adjusted EBITDA margin of 13.1%, the highest level in nearly two years, with a sequential increase of 190 basis points from Q1 2025.
Successful Cost Reduction Initiatives
Fox Factory's $25 million cost reduction program is on schedule, with approximately 30% of benefits realized so far, contributing to improved financial performance.
Growth in Powered Vehicles Group
The Powered Vehicles Group saw net sales increase by 4.9%, driven by the expansion of the motorized 2-wheel business, which more than offset softness in the powersports OE business.
Specialty Sports Group Performance
Net sales in the Specialty Sports Group increased by 11%, with adjusted EBITDA margin improving by 280 basis points to 22.1%, supported by strength in the bike business.
Negative Updates
Increased Tariff Costs
Tariff costs increased relative to initial expectations, with a pre-mitigated impact of approximately $50 million for 2025, affecting margins across all segments.
Net Income Decline
Net income for Q2 2025 was $2.7 million, down from $5.4 million in the same period last year, with an effective tax rate of nearly 51% due to unfavorable stock-based compensation exercises.
Aftermarket Applications Group Margin Pressure
The Aftermarket Applications Group faced adjusted EBITDA margin compression due to increased tariff rates on imported wheels and tires, as well as delayed consolidation actions.
Company Guidance
During Fox Factory's second quarter 2025 earnings call, the company provided guidance with several key metrics. Net sales for the second quarter amounted to $374.9 million, reflecting a 7.6% increase compared to the previous year. The consolidated adjusted EBITDA margin improved to 13.1%, marking the highest level in nearly two years, and adjusted EBITDA saw an 11.8% year-over-year increase to $49.3 million. Despite increased tariff pressures, the company adjusted its full-year net sales guidance upwards to a range of $1.45 billion to $1.51 billion, from the original $1.385 billion to $1.485 billion. However, the EPS guidance was narrowed to $1.60 to $2.00, down from the original range of $1.60 to $2.60, to account for the approximately $50 million pre-mitigated tariff impact anticipated for the year. The call highlighted ongoing initiatives such as footprint consolidation, portfolio optimization, and working capital management, which are aimed at supporting operational efficiency and profitability.Fox Factory Holding Financial Statement Overview
Summary
Fox Factory Holding faces significant profitability challenges, with a negative net profit margin and declining revenue growth. The balance sheet shows low leverage but a concerning negative return on equity. Cash flow generation has improved, but negative net income affects overall financial health.Income Statement
Fox Factory Holding's income statement shows a challenging period with a negative net profit margin of -17.5% and a negative EBIT margin of -14% in the TTM. Despite a slight revenue growth of 1.86% in the TTM, the company has struggled with profitability, as evidenced by negative EBIT and EBITDA margins. The annual data from 2025 shows a significant decline in revenue growth and profitability compared to previous years, indicating potential operational challenges.40
Negative
Balance Sheet
The balance sheet reflects a relatively low debt-to-equity ratio of 0.025 in the TTM, suggesting conservative leverage. However, the return on equity is negative at -23.5%, indicating inefficiencies in generating returns for shareholders. The equity ratio remains stable, but the declining ROE raises concerns about the company's ability to effectively utilize its equity base.55
Neutral
Cash Flow
The cash flow statement shows a positive free cash flow growth rate of 11.13% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio of 0.54 suggests moderate cash flow efficiency. Despite the positive cash flow trends, the overall cash flow performance is tempered by the negative net income, which impacts the free cash flow to net income ratio.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.44B | 1.39B | 1.46B | 1.60B | 1.30B | 619.23M |
| Gross Profit | 436.13M | 423.58M | 464.81M | 531.34M | 432.33M | 205.50M |
| EBITDA | -115.91M | 147.98M | 216.59M | 291.94M | 237.85M | 94.53M |
| Net Income | -252.31M | 6.55M | 120.85M | 205.28M | 163.82M | 84.04M |
Balance Sheet | ||||||
| Total Assets | 1.97B | 2.23B | 2.24B | 1.62B | 1.52B | 485.25M |
| Cash, Cash Equivalents and Short-Term Investments | 81.45M | 71.67M | 83.64M | 145.25M | 179.69M | 27.96M |
| Total Debt | 24.29M | 721.74M | 757.64M | 210.31M | 387.55M | 59.43M |
| Total Liabilities | 1.01B | 1.03B | 1.02B | 496.95M | 621.65M | 164.05M |
| Stockholders Equity | 958.72M | 1.20B | 1.22B | 1.12B | 894.08M | 321.20M |
Cash Flow | ||||||
| Free Cash Flow | 91.35M | 87.79M | 131.89M | 143.39M | 10.44M | 35.19M |
| Operating Cash Flow | 133.26M | 131.83M | 178.74M | 187.09M | 65.29M | 65.39M |
| Investing Cash Flow | -69.12M | -76.29M | -750.40M | -44.73M | -106.73M | -30.20M |
| Financing Cash Flow | -66.03M | -67.33M | 508.98M | -179.14M | -24.10M | -43.43M |
Fox Factory Holding Technical Analysis
Negative
22.21
Price Trends
27.43
Negative
27.11
Negative
26.16
Negative
Market Momentum
-1.22
Positive
28.14
Positive
8.33
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 22.21 is below the 20-day moving average (MA) of 25.01, below the 50-day MA of 27.43, and below the 200-day MA of 26.16, indicating a bearish trend. The MACD of -1.22 indicates Positive momentum. The RSI at 28.14 is Positive, neither overbought nor oversold. The STOCH value of 8.33 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 64 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $870.49M | 13.42 | 9.90% | 3.20% | 17.98% | 9.41% | |
75 Outperform | $941.98M | 19.30 | 21.27% | ― | 9.96% | 2.74% | |
72 Outperform | $4.37B | 19.28 | 17.38% | ― | 6.76% | 34.97% | |
70 Outperform | $7.64B | 10.91 | 11.20% | 4.18% | -3.02% | -1.02% | |
67 Neutral | $1.04B | 33.02 | 4.72% | ― | -0.78% | -51.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $967.68M | 128.36 | -23.42% | ― | 7.16% | -720.80% |
* Consumer Cyclical Sector Average
FOXF
Fox Factory Holding
22.21
-18.07
-44.86%
DORM
Dorman Products
141.68
27.76
24.37%
LKQ
LKQ
28.68
-9.15
-24.19%
SMP
Standard Motor Products
38.12
8.34
28.01%
THRM
Gentherm
33.48
-9.19
-21.54%
XPEL
XPEL
33.89
-9.38
-21.68%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.