Fox Factory Holding Corp (FOXF, Financial), with a current market capitalization of $1.99 billion and a stock price of $47.79, has experienced notable fluctuations in its stock price recently. Over the past week, the stock has declined by 1.62%, yet it has gained an impressive 11.51% over the last three months. This performance is particularly interesting when considering the GF Value of $98.02, which suggests that the stock is significantly undervalued. This valuation is consistent with the assessment from three months ago, indicating a persistent undervaluation relative to its intrinsic value.
Overview of Fox Factory Holding Corp
Fox Factory Holding Corp, operating in the Vehicles & Parts industry, is a prominent designer, manufacturer, and marketer of performance-defining products and systems. These are primarily used in a variety of vehicles including bikes, Side-by-Sides, on-road and off-road vehicles, trucks, ATVs, snowmobiles, specialty vehicles, motorcycles, and commercial trucks. The company markets its products under the FOX, FOX RACING SHOX, and RACE FACE brands. With a major revenue share coming from North America, FOXF also has a significant presence in Asia, Europe, and other regions.
Robust Profitability
FOXF boasts a Profitability Rank of 10/10, reflecting its strong performance in generating profits compared to its peers. The company's operating margin stands at 8.18%, which is better than 69.39% of 1,284 companies in the industry. Additionally, its Return on Equity (ROE) of 6.27% and Return on Assets (ROA) of 3.86% are also commendable, surpassing 43.35% and 53.23% of industry counterparts, respectively. The Return on Invested Capital (ROIC) at 6.19% further underscores its efficient use of capital. Remarkably, FOXF has maintained profitability for the past 10 years, a feat better than 99.92% of its peers.
Consistent Growth Trajectory
The company's Growth Rank of 9/10 mirrors its strong historical growth in revenue and earnings. Over the past three years, FOXF's revenue per share grew by 16.50%, outperforming 68.18% of 1,232 companies in the same sector. The five-year revenue growth rate per share stands even higher at 19.60%, surpassing 90.15% of 1,137 companies. Earnings per Share (EPS) growth rates for the past three and five years are 8.70% and 12.30%, respectively, further highlighting its growth stability.
Significant Shareholders
Notable investors in FOXF include Ron Baron (Trades, Portfolio), holding 900,000 shares, Chuck Royce (Trades, Portfolio) with 188,000 shares, and Steven Cohen (Trades, Portfolio) who owns 79,495 shares. These holdings reflect the confidence major investors have in the company's future prospects.
Competitive Landscape
When compared to its competitors, FOXF holds a unique position. Goodyear Tire & Rubber Co (GT, Financial) with a market cap of $3.28 billion, Visteon Corp (VC, Financial) valued at $3 billion, and Adient PLC (ADNT, Financial) at $2.19 billion are among its closest competitors. Each of these companies shares a similar market space in the Vehicles & Parts industry, yet FOXF's unique product offerings and strong market presence in North America provide it with a competitive edge.
Conclusion
In conclusion, Fox Factory Holding Corp's financial health and market position are robust, underscored by its high profitability and consistent growth. The stock's current valuation, as indicated by its GF Value, suggests significant undervaluation, presenting a potentially attractive opportunity for investors. With strong historical performance and positive growth prospects, FOXF appears well-positioned to maintain its market leadership and deliver value to its shareholders.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
