FOXF

Fox Factory Holding Corp

Industrial/Transportation


Presented:12/18/2019
Price:$68.22
Cap:$2.63B
Current Price:$39.59
Cap:$1.65B

Presented

Date12/18/2019
Price$68.22
Market Cap$2.63B
Ent Value$2.49B
P/E Ratio29.46x
Book Value$10.30
Div Yield0%
Shares O/S38.52M
Ave Daily Vol209,163
Short Int6.42%

Current

Price$39.59
Market Cap$1.65B
Fox Factory Holding Corp. engages in designing, engineering, manufacturing, and marketing performance ride dynamics products. Its product categories include bicycles; side-by-sides; on-road vehicles with off-road capabilities; off-road vehicles and trucks; all-terrain vehicles; snowmobiles; specialty vehicles and applications; and motorcycles. It operates through the following geographic segments: North America, Asia, Europe, and Rest of the World. The company was founded on December 28, 2007 and is headquartered in Braselton, GA.

Publicly traded companies mentioned herein: Fiat Chrysler Automobiles NV (FCAU), Ford Motor Company (F), Fox Factory Holding Corp (FOXF), Polaris Inc. (PII), Toyota Motor Corp (TM)

Highlights

The presenter is short shares of Fox Factory Holding Corp (FOXF), the manufacturer of suspension products for mountain bikes, side-by-side vehicles, and autos. Fox’s largest segment and end market is the automotive market, and the presenter believes there will be a slowdown in growth driven by reduced truck production. Shares of Fox currently trade in the mid-$60s at 18x EBITDA, and have ~6% short interest. Given a slowdown in automotive growth and a normalizing tax rate, the presenter sees a 30% - 40% downside and the stock trading down to the $40s in the next year. 

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Idea Discussion

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