This week the Valens Securities team highlights our most interesting equity insight from across our tools and our analysis.
Markets are expecting slowing growth and weaker profitability for a management team that has consistently delivered on profitability and strategy, and even with near-term potential execution issues, longer-term upside remains
FOXF is trading at a 18x UAFRS-adjusted P/E (Fwd V/E’), and a 4.8x UAFRS-adjusted P/B (V/A’), in the middle of historical valuations. The market is expecting 20% UAFRS-adjusted Asset (Asset’) growth going forward, at the lower end of recent Asset’ growth levels. The market also expects UAFRS-adjusted ROA (ROA’) to decline to 14% levels over the next several years, even though analysts expect ROA’ to maintain at current 27%-28% levels the next several years.