FOXF - Embedded Expectations Analysis - 2020 10 05
Fox Factory Holding Corp. (FOXF:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 25.9x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may have concerns about end-customer demand, operating efficiencies, and their supply chainSpecifically, management may be exaggerating expectations for accelerated end-customer demand. Furthermore, they may be overstating the capabilities of their Specialty Sports and powered vehicle products, the strength of their competitive advantages going forward, and the operating efficiencies in California and Georgia. Additionally, they may lack confidence in their ability to make the supply chain responsive to the increased demand and sustain vehicle chassis deposits. Finally, they may be concerned about headwinds associated with the lack of new product launches, and the financial capabilities of their customers
Fox Factory Holding is a holding company. Through its subsidiaries, the company is a designer, manufacturer and marketer of products and systems used on bicycles, side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. In its powered vehicle product categories, the company provides products under the FOX, BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, and Tuscany brands. The company's bike product offerings are used on a range of mountain bikes and road bikes under the FOX, Race Face, Easton Cycling and Marzocchi brands.
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