Fact based stock research
Fox Factory (NasdaqGS:FOXF)

US35138V1026

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Fox Factory stock research in summary

investor.ridefox.com

ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), Fox Factory (Auto Parts & Equipment, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Fox Factory are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives) and show below-average growth (Growth Rank of 45) but are safely financed (Safety Rank of 73), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on Fox Factory's financial characteristics. As the company Fox Factory's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 26) and low growth (Obermatt Growth Rank of 45), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 73) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	26
Growth Rank	45
Safety Rank	73
Combined Rank	59

Country	USA
Industry	Auto Parts & Equipment
Index	NASDAQ, S&P MIDCAP
Size class	Large

25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Fox Factory

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	3	5	22	26
GROWTH
GROWTH	100	61	39	45
SAFETY
SAFETY	38	52	98	73
SENTIMENT
SENTIMENT	n/a	80	50	^new
360° VIEW
360° VIEW	n/a	47	49	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Jan-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Fox Factory is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	3	5	22	26
GROWTH
GROWTH	100	61	39	45
SAFETY
SAFETY	38	52	98	73
COMBINED
COMBINED	41	23	62	59

Last update of combined financial performance: 25-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Fox Factory the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 26 (worse than 74% compared with alternatives), Fox Factory shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Fox Factory. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 71, which means that the stock price is lower compared with invested capital than for 71% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 42 which means the stock price compared with what market professionals expect for future profits is higher than 58% of comparable companies, indicating a low value concerning Fox Factory's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 71 and for the dividend yields rank which is lower than for 99% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 26, is a hold recommendation based on Fox Factory's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Fox Factory, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	18	12	23	42
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	45	12	51	49
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	17	28	71
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	3	5	22	26

Last update of Value Rank: 25-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Fox Factory; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Fox Factory shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Fox Factory. Sales Growth has a rank of 77 which means that currently, professionals expect the company to grow more than 77% of its competitors. Capital Growth is also above 6% of competitors with a rank of 97. But Profit Growth only has a rank of 6, which means that currently professionals expect the company to grow its profits less than 94% of its competitors. And Stock Returns have also been below average with a rank of only 5. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	98	51	90	77
PROFIT GROWTH
PROFIT GROWTH	71	67	25	6
CAPITAL GROWTH
CAPITAL GROWTH	n/a	59	67	97
STOCK RETURNS
STOCK RETURNS	96	61	7	5
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	100	61	39	45

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Fox Factory.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 73 (better than 73% compared with alternatives), the company Fox Factory has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Fox Factory is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Fox Factory. Refinancing is at 72, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 72% of its competitors. Liquidity is also good at 56, meaning the company generates more profit to service its debt than 56% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 44, which means the company has an above-average debt-to-equity ratio. It has more debt than 56% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 73 (better than 73% compared with alternatives), Fox Factory has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Fox Factory could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Fox Factory and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	41	54	94	44
REFINANCING
REFINANCING	18	20	47	72
LIQUIDITY
LIQUIDITY	73	78	94	56
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	38	52	98	73

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Fox Factory and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	43	64	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	31	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	80	53	^new
MARKET PULSE
MARKET PULSE	n/a	82	61	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	80	50	^new

Last update of Sentiment Rank: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Fox Factory.
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