Fox Factory Return On Equity vs. Cash And Equivalents

FOXF Stock  USD 29.30  2.00  6.39%   
Based on the key profitability measurements obtained from Fox Factory's financial statements, Fox Factory's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Fox Factory's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.1832248
Current Value
0.23
Quarterly Volatility
0.09445012
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Fox Factory's Operating Cash Flow Sales Ratio is most likely to slightly decrease in the upcoming years. The Fox Factory's current Price Sales Ratio is estimated to increase to 5.78, while Sales General And Administrative To Revenue is projected to decrease to 0.05. At this time, Fox Factory's Net Income Per Share is most likely to increase slightly in the upcoming years.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.250.3328
Way Down
Pretty Stable
Net Profit Margin0.07520.1261
Way Down
Slightly volatile
Operating Profit Margin0.10.1516
Way Down
Pretty Stable
Pretax Profit Margin0.0960.145
Way Down
Pretty Stable
Return On Assets0.120.1081
Significantly Up
Pretty Stable
Return On Equity0.230.1832
Significantly Up
Slightly volatile
For Fox Factory profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fox Factory to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fox Factory Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fox Factory's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fox Factory Holding over time as well as its relative position and ranking within its peers.
  
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Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fox Factory. If investors know Fox will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fox Factory listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.87)
Earnings Share
0.26
Revenue Per Share
32.862
Quarterly Revenue Growth
0.085
Return On Assets
0.0219
The market value of Fox Factory Holding is measured differently than its book value, which is the value of Fox that is recorded on the company's balance sheet. Investors also form their own opinion of Fox Factory's value that differs from its market value or its book value, called intrinsic value, which is Fox Factory's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fox Factory's market value can be influenced by many factors that don't directly affect Fox Factory's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fox Factory's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fox Factory is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fox Factory's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Fox Factory Holding Cash And Equivalents vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fox Factory's current stock value. Our valuation model uses many indicators to compare Fox Factory value to that of its competitors to determine the firm's financial worth.
Fox Factory Holding is rated # 5 in return on equity category among its peers. It is one of the top stocks in cash and equivalents category among its peers creating about  12,345,454,545  of Cash And Equivalents per Return On Equity. At this time, Fox Factory's Return On Equity is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Fox Factory by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Fox Cash And Equivalents vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Fox Factory

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0088
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Fox Factory

Cash

 = 

Bank Deposits

+

Liquidities

 = 
108.64 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Fox Cash And Equivalents Comparison

Fox Factory is currently under evaluation in cash and equivalents category among its peers.

Fox Factory Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fox Factory, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fox Factory will eventually generate negative long term returns. The profitability progress is the general direction of Fox Factory's change in net profit over the period of time. It can combine multiple indicators of Fox Factory, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive IncomeM9.5 M
Operating Income160.1 M95.5 M
Income Before Tax138.7 M89.2 M
Total Other Income Expense Net-21.4 M-20.4 M
Net Income120.8 M75.1 M
Income Tax Expense17.8 M14.1 M
Net Income Applicable To Common Shares236.1 M247.9 M
Net Income From Continuing Ops120.8 M91.7 M
Non Operating Income Net Other-292.5 K-307.1 K
Interest Income1.4 M1.2 M
Net Interest Income-19.3 M-18.4 M
Change To Netincome-6.3 M-6 M
Net Income Per Share 3.90  4.09 
Income Quality 0.40  0.38 
Net Income Per E B T 0.87  0.62 

Fox Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Fox Factory. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fox Factory position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fox Factory's important profitability drivers and their relationship over time.

Use Fox Factory in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fox Factory position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fox Factory will appreciate offsetting losses from the drop in the long position's value.

Fox Factory Pair Trading

Fox Factory Holding Pair Trading Analysis

The ability to find closely correlated positions to Fox Factory could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fox Factory when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fox Factory - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fox Factory Holding to buy it.
The correlation of Fox Factory is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fox Factory moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fox Factory Holding moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fox Factory can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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When determining whether Fox Factory Holding is a strong investment it is important to analyze Fox Factory's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Fox Factory's future performance. For an informed investment choice regarding Fox Stock, refer to the following important reports:
To fully project Fox Factory's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fox Factory Holding at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Fox Factory's income statement, its balance sheet, and the statement of cash flows.
Potential Fox Factory investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Fox Factory investors may work on each financial statement separately, they are all related. The changes in Fox Factory's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Fox Factory's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.