One-glance verdict
Within fair range
$643.58 our estimate vs market $534.25
Wall Street consensus: $665.00 (3.3% higher than our fair-value estimate)
17% below our estimate
Fundamentals snapshot
Cavco Industries, Inc.
CVCO · NMS · Consumer Cyclical · Residential Construction
Current price
$534.25
52-week range
$443.34 - $713.01
Market cap
$4.11B
Balance sheet
Healthy
422.49x Strong cushion
Net cash $220.36M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 2.4% last year.
- Reward Returns 16.7% on equity, ahead of 83% of its peers.
- Risk Stock trades 18.0% above its 5-year average P/E.
- Risk Operating margin compressed from 13.8% to 9.8% over 3 years.
What this company does
Cavco Industries, Inc.
Cavco Industries (CVCO) builds and sells factory-made homes, from park models to larger modular residences, and also offers financing and insurance for these homes through its various sales channels. The money mainly comes from selling these homes and providing related financial services, which is important because it shows how they make money from both the houses themselves and the services that help people buy them.
How the company got here
Cavco Industries began in 1965 as Roadrunner Manufacturing Company, initially producing truck campers. After the 1973 oil crisis impacted the recreational vehicle market, the company shifted its focus entirely to factory-built housing, rebranding as Cavco Industries in 1974. Over the years, Cavco has grown significantly through strategic acquisitions of other housing manufacturers, consolidating many brands under the unified Cavco Homes identity in 2025. This growth strategy has expanded its manufacturing capabilities and market presence across the United States.
What it actually does
Cavco Industries designs, builds, and sells factory-built homes. These homes are constructed in a controlled factory environment, which allows for consistent quality and efficiency. Cavco offers a variety of housing types, including manufactured homes (built to federal HUD standards) and modular homes (built to local building codes). They also produce park model RVs, vacation cabins, and commercial structures. These homes are sold through a network of company-owned retail locations and independent retailers.
Factory-Built Housing
This is Cavco's largest business segment, encompassing the design, production, and sale of various types of factory-built homes. This includes manufactured homes, which are built in a factory to federal HUD (Housing and Urban Development) standards and are built on a steel frame for transportability. They also produce modular homes, which are built in sections in a factory and then assembled on-site according to local building codes. Additionally, this segment includes park model RVs, vacation cabins, and factory-built commercial structures used for various purposes like schools or military housing. This segment is the primary revenue driver for Cavco.
Financial Services
This segment provides financial products and services to support the purchase of Cavco's factory-built homes. It includes mortgage lending through subsidiaries like CountryPlace Mortgage and American Homestar Mortgage, offering both conforming (meeting certain standards set by government-sponsored enterprises like Fannie Mae and Freddie Mac) and non-conforming loans. The segment also offers property and casualty insurance for manufactured homes through companies like Standard Casualty. This business line complements the housing segment by making it easier for customers to finance and insure their homes.
What management is betting on now
Cavco's management is focused on leveraging innovation and market trends to drive growth. A key development is the introduction of chassis-free manufactured homes, enabled by recent legislation, which allows for more flexible designs and ground-set installations. The company is also emphasizing its multi-brand strategy, unifying legacy brands under the Cavco Homes identity while preserving regional strengths, to create clearer consumer messaging. Furthermore, Cavco continues to expand its manufacturing capacity and retail network through strategic acquisitions, aiming to meet the growing demand for affordable housing solutions.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$49.80M
FY2025 Q3
$32.34M
FY2025 Q4
$32.51M
FY2026 Q1
$46.38M
FY2026 Q2
$68.74M
FY2026 Q3
$57.63M
FY2026 Q4
$59.33M
FY2027 Q1
$48.96M
Revenue
$609.96M
Net income
$42.27M
Diluted EPS
5.43
Operating cash flow
$74.45M
Free cash flow
$48.96M
Fetching…
Sources
Revenue
$550.13M
Net income
$42.46M
Diluted EPS
5.43
Operating cash flow
$67.37M
Free cash flow
$59.33M
Fetching…
Sources
Revenue
$580.99M
Net income
$44.07M
Diluted EPS
5.58
Operating cash flow
$66.12M
Free cash flow
$57.63M
Fetching…
Sources
Revenue
$556.53M
Net income
$52.38M
Diluted EPS
6.55
Operating cash flow
$78.47M
Free cash flow
$68.74M
Fetching…
Sources
Revenue
$556.86M
Net income
$51.64M
Diluted EPS
6.42
Operating cash flow
$55.52M
Free cash flow
$46.38M
Fetching…
Sources
Revenue
$508.36M
Net income
$36.33M
Diluted EPS
4.42
Operating cash flow
$38.65M
Free cash flow
$32.51M
Fetching…
Sources
Revenue
$522.04M
Net income
$56.46M
Diluted EPS
6.90
Operating cash flow
$37.78M
Free cash flow
$32.34M
Fetching…
Sources
Revenue
$507.46M
Net income
$43.81M
Diluted EPS
5.28
Operating cash flow
$54.68M
Free cash flow
$49.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value $643.58 vs current price $534.25
Wall Street consensus is the average analyst price target: $665.00 (3.3% higher than our fair-value estimate).
Our most-likely fair value is $643.58 a share — about 20.5% away from today's price of $534.25, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $220.4M - more cash than debt. Interest coverage 422.5x.
Net debt
$-220.36M
Interest coverage
422.49x
Cavco Industries, Inc.'s profit covers its interest bill about 422.5 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
CVCO
BASELINE
Cavco Industries, Inc.
Total debt $41.11M Interest coverage 422.49x This is the baseline the peer rows are being compared against.
Total debt $123.17M Interest coverage 33.36x -92% vs CVCO Carries about 12.7x less debt cushion than CVCO.
Total debt $1.11M Interest coverage 1,728.82x +309% vs CVCO Carries about 4.1x more debt cushion than CVCO.
Total debt $408.40M Interest coverage 33.62x -92% vs CVCO Carries about 12.6x less debt cushion than CVCO.
Total debt $979.32M Interest coverage 246.32x -42% vs CVCO Carries about 1.7x less debt cushion than CVCO.
What you should know
The case for and against CVCO
3 Rewards
3 Risks
Rewards
-
Revenue grew 2.4% last year.
-
Returns 16.7% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 18.0% above its 5-year average P/E.
-
Operating margin compressed from 13.8% to 9.8% over 3 years.
-
Insider ownership is only 1.6% (peer median: 2.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.24x
Forward P/E
18.54x
P/B
3.71x
P/S
1.79x
EV/EBITDA
15.38x
PEG ratio
45.77x
Profitability
How much profit each dollar creates
Gross margin
21.9%
Operating margin
9.8%
Net margin
7.9%
ROE
16.7%
ROA
9.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
2.23x
Quick ratio
1.05x
Total debt
$41.11M
Total cash
$261.47M
Growth
How the business has been compounding
Revenue TTM
$2.30B
Revenue 5Y CAGR
8.4%
EPS TTM
22.99
EPS 5Y CAGR
-3.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$286.42M
Free CF TTM
$232.09M
FCF margin
10.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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