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 focused on growth, and confident on profitability and their strategic initiatives, spelling potential for equity upside
FOXF is trading at a 17x UAFRS-adjusted P/E (Fwd V/E’), and a 5.8x UAFRS-adjusted P/B (V/A’), in the middle of historic 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 18% levels over the next several years, even though analysts expect ROA’ to maintain at current 31%-33% levels the next several years.