2024-02-08 08:24:56 ET
Summary
- Fox Factory’s revenue and EBITDA have grown at a CAGR of +19% during the last decade, with impressive consistency in its upward trajectory.
- FOXF has an extremely attractive business model, owing to its deep expertise, innovation, and relationships with leading OEMs. This positions the business for long-term success regardless of competition.
- The organic trajectory of the business, in conjunction with M&A and industry tailwinds, should ensure healthy growth in the coming years.
- FOXF is completely outperforming its peers, contributing to enhanced shareholder value. We attribute this to the company’s wide moat and growth strategy.
- FOXF’s valuation appears attractive as an entry point, falling below its historical average and trajectory.
Investment thesis
Our current investment thesis is:...
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Fox Factory: Wide Moat And Strong Margins In A Niche Industry