FOXF - Embedded Expectations Analysis - 202104 16
Fox Factory Holding Corp. (FOXF:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 32.6x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about SSG business growth, Georgia facility costs, and pandemic-related production headwindsSpecifically, management may lack confidence in their ability to sustain SSG business growth, maintain their design and innovation standards for new products, and improve margins in H2 2021. They may also lack confidence in their ability to meet their sales targets and they may be concerned about the duplicative costs in their Georgia facility. Finally, they may have concerns about potential supply chain constraints, the sustainability of European e-bike category demand, and pandemic-related production headwinds
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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