FOXF - Embedded Expectations Analysis - 2021 02 01
Fox Factory Holding Corp. (FOXF:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 36.5x Uniform P/E. Even at these levels, the market has expectations for profitability to remain stable, but management may have concerns about the Powered Vehicles Group, organic revenue growth, and product pricingSpecifically, management may be overstating their performance finding new products lines, the strength of the outlook for their Powered Vehicles Group, and the demand tailwinds for their e-bike products. Furthermore, they may lack confidence in their ability to fulfill demand for power sports customers, maintain flat organic revenue growth, and sustain price increases for their products. Finally, they may have concerns about their liquidity position and increases in their prepaids and other current assets
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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