Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Fox Factory Holding's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.63%.
As of today (2026-07-15), Fox Factory Holding's WACC % is 8.61%. Fox Factory Holding's ROC % is 2.43% (calculated using TTM income statement data).
Fox Factory Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Fox Factory Holding (FRA:FF0) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Fox Factory Holding's WACC % is 8.61%. Fox Factory Holding's ROC % is 2.43% (calculated using TTM income statement data).
Fox Factory Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Fox Factory Holding ROC % Related Terms
Fox Factory Holding ROC % Historical Data
* Premium members only.
The historical data trend for Fox Factory Holding's ROC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Fox Factory Holding (FRA:FF0) has a ROC % of 1.63% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Fox Factory Holding and its competitors.
Is Fox Factory Holding's ROC % too high?
Fox Factory Holding's current ROC % is 1.63%. The Vehicles & Parts industry median ROC % is 5.05. Fox Factory Holding's value of 1.63% is 67.7% below this industry median. Overall, Fox Factory Holding has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Fox Factory Holding's ROC % compare to HYLN and SMP?
Fox Factory Holding's ROC % of 1.63% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.05. Fox Factory Holding's value of 1.63% is 67.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.05, based on 1,311 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fox Factory Holding's current ROC % of 1.63% is 67.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Fox Factory Holding and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fox Factory Holding's current ROC % is 1.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fox Factory Holding stock overvalued right now?
Based on GuruFocus' analysis, Fox Factory Holding (FRA:FF0) is currently considered Possible Value Trap. The stock's GF Value™ is €30.00, compared to a current price of €15.22 — trading 49.3% below its estimated fair value. The current ROC % is 1.63% and 67.7% below the Vehicles & Parts industry median of 5.05. Fox Factory Holding's overall GF Score™ is 66/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Fox Factory Holding (FRA:FF0), the current ROC % is 1.63% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fox Factory Holding (FRA:FF0) Overvalued in 2026?
Based on GuruFocus' analysis, Fox Factory Holding stock appears to be undervalued.
The current stock price of €15.22 is trading 49.3% below its estimated GF Value™ of €30.00.
GuruFocus considers Fox Factory Holding to be Possible Value Trap.
Key valuation signals for FRA:FF0:
ROC %: 1.63%
GF Value™: €30.00 vs. price of €15.22 (49.3% below fair value)
Industry Position: 67.7% below the Vehicles & Parts median
No single metric tells the full story. See the FRA:FF0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fox Factory Holding Corp is a designer, manufacturer, and marketer of performance-defining products and systems used predominantly on bikes, Side-by-Sides, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, ATVs, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. Its business operates under the FOX, FOX RACING SHOX, and RACE FACE brands. Geographically, it derives a majority of revenue from North America and also has a presence in Asia, Europe, and the Rest of the World. The company operates in three segments: Powered Vehicles Group, Aftermarket Applications Group, and Specialty Sports Group, of which it derives maximum revenue from Specialty Sports Group segment.
66GF Score
Get the complete analysis for FRA:FF0
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:FF0 has been successfully added to your 
