This is a step-by-step stock review to answer the question, is Fox Factory Holding Corp (FOXF) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Fox Factory Holding Corp (FOXF) stock a good buy?
- Fox Factory Holding Corp Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Fox Factory Holding Corp (FOXF) stock a good buy?
1. Fox Factory Holding Corp Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 2003: Established as a private equity firm focused on consumer brands.
- Initial Investments: Began with strategic investments in small to mid-sized consumer product companies.
- Growth Strategy: Focuses on acquiring and growing consumer brands through operational improvements and strategic guidance.
- Diverse Portfolio: Invests in a variety of sectors, including food and beverage, health and wellness, and personal care.
- Expertise in Scaling: Known for helping brands scale rapidly by providing capital, expertise, and resources.
- Operational Excellence: Implements best practices in marketing, supply chain management, and product innovation.
- Long-Term Partnerships: Builds long-term relationships with portfolio companies, emphasizing sustainable growth and profitability.
- Experienced Team: Led by seasoned professionals with extensive experience in consumer products and private equity.
- Industry Recognition: Recognized for successful turnarounds and growth stories in the consumer sector.
- Future Vision: Continues to seek out promising consumer brands with strong growth potential, aiming to expand its portfolio and enhance value for stakeholders.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: overpriced
- Score: 44
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Fox Factory Holding Corp makes money:
- Suspension Products: Designs, manufactures, and sells high-performance suspension products for bikes, motorcycles, and off-road vehicles.
- OEM Sales: Supplies suspension components to vehicle and bicycle manufacturers.
- Aftermarket Sales: Sells suspension products and accessories through distributors, dealerships, and online.
- Powered Vehicle Products: Offers shock absorbers and suspension systems for side-by-sides, ATVs, and trucks.
- Performance Series: Markets premium suspension systems under the Performance Series brand.
- Powered Vehicles OEM: Supplies suspension systems directly to powered vehicle manufacturers.
- Sales Channels: Distributes products globally through distributors, dealers, retailers, and direct sales.
- Ride Dynamics Solutions: Provides technology-driven ride dynamics solutions to enhance vehicle and bicycle performance.
- Brand Portfolio: Owns and operates multiple recognized brands including FOX, Marzocchi, and Race Face.
- Innovation and Development: Focuses on continuous innovation and research to introduce new products.
- Corporate Sustainability: Emphasizes environmentally responsible practices in manufacturing and operations.
Fox Factory Holding Corp utilizes these revenue streams to maximize earnings and offer diverse services in the suspension industry.
Here are a few of the other companies that Fox Factory Holding Corp (FOXF) has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- RideTech
- SCA Performance
- Outside Van
- Marucci Sports
- Race Face/Easton Cycling
- Sport Truck USA
- Tuscany Motor Company
- Sola Sport Pty Ltd
- Shock Therapy
- Custom Wheel House
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Fox Factory Holding Corp (FOXF) stacks up against other companies.
- Dorman Products, Inc. (DORM) – 84
- Gentex Corporation. (GNTX) – 84
- Visteon Corporation. (VC) – 83
- XPEL, Inc. (XPEL) – 67
- Gentherm Incorporated. (THRM) – 61
- Fox Factory Holding Corp. (FOXF) – 44
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Revenue Growth: Michael Dennison significantly boosted Fox Factory’s revenue, achieving record financial performance.
- Product Innovation: Led the development and introduction of innovative products, enhancing the company’s product lineup.
- Market Expansion: Successfully expanded Fox Factory’s market presence into new segments and regions.
- Operational Efficiency: Improved operational efficiencies, leading to better profit margins and cost savings.
- Strategic Acquisitions: Executed strategic acquisitions, strengthening Fox Factory’s portfolio and capabilities.
- Brand Strengthening: Enhanced the brand’s reputation and visibility in the high-performance suspension and outdoor products markets.
- Sustainability Initiatives: Implemented sustainability practices and introduced eco-friendly products.
- Customer Engagement: Increased focus on customer engagement and satisfaction, improving overall customer experience.
- Technology Integration: Integrated advanced technologies to improve product performance and manufacturing processes.
- Employee Development: Fostered a strong company culture, emphasizing employee growth and development.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Fox Factory Holding Corp (FOXF) is 53/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Fox Factory Holding Corp (FOXF) stock a good buy?
Some of the top questions investors can have is Fox Factory Holding Corp (FOXF) stock a good buy or should I buy Fox Factory Holding Corp (FOXF) stock?
Fox Factory Holding Corp is a solid investment opportunity due to its leadership in high-performance suspension systems and related products for bicycles, off-road vehicles, and trucks. The company benefits from a strong brand reputation and a loyal customer base among enthusiasts and professionals in various segments. Its consistent revenue growth and profitability are driven by innovation and quality in its product offerings.
Key strengths include its focus on advanced technology, strategic acquisitions that broaden its product range and market reach, and expansion into new markets. Fox Factory’s commitment to R&D ensures it remains at the forefront of performance improvement and product development. However, potential investors should consider risks such as economic cycles affecting discretionary spending, competition, and supply chain disruptions.
Overall, Fox Factory’s robust market position, continuous innovation, and financial performance make it an attractive choice for investors seeking exposure to the recreational and performance vehicle markets.
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To truly know if Fox Factory Holding Corp is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.