FOXF Stock Forecast: Performance-Defining Products Company With Potential Growth

Yuwei ZhouThis FOXF Stock Forecast article was written by Yuwei Zhou – Financial Analyst at I Know First.


  • Sales increased by 17.8% to $409.2 million.
  • Net income attributed to FOXF’s stockholders grew by 80.7% compared to the prior year.
  • Fox Factory invests $1 million in the first year of Trail Trust.


Fox Factory Holding Corp., ( NASDAQ: FOXF) designs, engineers, manufactures, and markets performance-defining products and systems for customers worldwide. Fox Factory Holding Corp. is the holding company of Fox Factory, Inc. Some of its products are specifically designed and marketed to some of the leading cycling and powered vehicle original equipment manufacturers (“OEMs”), while others are distributed to consumers through a global network of dealers and distributors. Fox Factory, Inc., its operating subsidiary, was incorporated in California in 1978. Fox Factory Holding Corp. was incorporated in Delaware on December 28, 2007. In June 2021, FOXF established a principal executive office in Duluth, Georgia.

FOXF is a designer, manufacturer, and marketer of performance-defining products and systems used primarily on bikes, side-by-sides, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, ATVs, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. The brand is associated with high-performance and technologically advanced products. In addition, consumers select its products in the aftermarket channel through a global network of dealers and distributors.

Overachieved Profit Supports FOXF To Take More Social Responsibilities  

According to the Third Quarter Fiscal report of 2022, Sales increased 17.8% to $409.2 million, compared to $347.4 million in the same period last fiscal year. Gross profit increased by 18.3% to $137.3 million, compared to $116.0 million in the same period last fiscal year. Gross margin percentage increased 10 basis points to 33.5%, compared to 33.4% in the same period last fiscal year; non-GAAP adjusted gross margin percentage increased by 10 basis points to 33.9% compared to 33.8% in the same period last fiscal year. Net income was $50.8 million, or 12.4% of sales and $1.20 of earnings per diluted share, compared to $43.8 million, or 12.6% of sales and $1.03 of earnings per diluted share in the same period last fiscal year. On a year-to-year basis, net income attributed to FOXF’s stockholders grew by 80.7%, and especially sports group sales increased by 57.8%.

For the fourth quarter of fiscal 2022, FOXF expects sales in the range of $370 million to $390 million and non-GAAP adjusted earnings per diluted share in the range of $1.10 to $1.30. For the fiscal year 2022, the Company expects sales in the range of $1,565 million to $1,585 million and non-GAAP adjusted earnings per diluted share in the range of $5.15 to $5.35


On Oct. 18, 2022, Fox Factory is proud to announce a partnership with the Society of Women Engineers (SWE). In addition to the annual partnership, the company participated the SWE National Conference held in Houston, Texas, Oct. 20-22nd. This is a fantastic opportunity to recruit talented professionals for Fox’s summer internship program, interview and hire experienced engineers to help FOXF develop next-level performance products, and provide stellar professional development for current employees. Moreover, Fox Factory invests $1 million in the first year of Trail Trust and aims to invest $10 million globally through Trail Trust by 2030.

Well-Positioned in a Growing Industry with a Healthy Financial Condition

The actual EPS has beaten the market estimation 4 times from Q4 2021, and two of them are 16% and 13% higher than the market estimation. In the meanwhile, the revenues and earnings have increased continuously for 3 years. The high-end segments in which FOXF participates are well-positioned for growth due to the increasing consumer appetite for performance-defining products and increasing average retail sales prices.


According to Gurufocus, the ROE of FOXF is 20%, ranked better than 86.35% of 1216 companies in the Vehicles & Parts industry. Meanwhile, the Net Margin of FOXF is 12.37%, outperforming 89.62% of companies in the same industry. The Altman Z-Score is 6.67 as of today, and the medium of FOXF’s Altman Z-Score range over the past 10 years is 6.07, so the Z-Score is continuously strong. Z is an important indicator to measure whether an enterprise is about to face a financial crisis, so it can be seen that FOXF’s financial situation is stable and safe. As for the Equity-to-Asset ratio, 0.63, is ranked better than 75.02% of companies in the same industry. These indicators above ensure strong profitability and financial strength.

Next, let’s take Valeo SE (VLEEY), Visteon Corporation (VC), and Adient plc (ADNT) as comparable companies to evaluate FOXF’s financial competitiveness. As the chart shows below, FOXF’s ROE is 19.95%, While the average of the peers is 10.88%, and FOXF’s performance is almost twice the average. The gross profit margin is also very outstanding to see, which is as high as 33.05%, twice the peers’ average too. The profitability competitiveness ensures future liquidity and indicates FOXF is dynamic in the demanding industry.

As for the valuation comparison, FOXF’s P/E ratio of 21.7 is below the average of 22.35. The P/B ratio is 4.11, almost the same as the peers’ average. Combined with the profitable performance discussed above, this stock is still in a low-valued range. The recommendation rating is 1.9, which is a buy signal. The analyst price target is 116.33, and the price today is still 9.6% lower than the target price.


I take a buy-side on FOXF’s stock. The company’s growth potential is obvious to the market. At the same time, the Vehicles & Parts industry is a promising sunrise industry. I believe FOXF will surprise the market again with not only the profitability but also the social responsibility it takes.

It is worth paying attention that the stock-picking AI of I Know First has a high signal on the one-year market trend forecasts, supporting my position for the FOXF stock forecast. The light green for the short-term forecasts is mildly bullish, while the darker green is a strong bullish signal for the one-year forecast.

Past Success with FOXF Stock Forecast

I Know First has been bullish on the FOXF stock forecast in the past. On October 11th, 2022 the I Know First algorithm issued a forecast for FOXF stock price and recommended FOXF as one of the best stocks to buy. The AI-driven FOXF stock prediction was successful on a 1-month time horizon resulting in more than 25.34%.

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