One-glance verdict
Within fair range
$545.39 our estimate vs market $548.04
Wall Street consensus: $646.67 (18.6% higher than our fair-value estimate)
0% above our estimate
Fundamentals snapshot
Cavco Industries, Inc.
CVCO · NMS · Consumer Cyclical · Residential Construction
Current price
$548.04
52-week range
$443.34 - $713.01
Market cap
$4.21B
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 21.2% 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 builds and sells homes that are made in a factory, such as modular houses and vacation cabins, mainly in the United States. The company makes most of its money from selling these homes, but it also earns income by providing mortgages (home loans) and insurance to the people who buy them. This business model is important because it allows Cavco to profit from the initial sale and also earn money over the long term by financing and insuring those same homes.
How the company got here
Cavco started in 1965 in Phoenix, Arizona, originally making truck campers. In the 1970s, due to rising gas prices affecting camper sales, the company shifted its focus entirely to producing manufactured homes, which are sometimes called mobile homes. A key growth strategy for Cavco has been acquiring other companies in the industry, such as Fleetwood Homes and Palm Harbor Homes, which helped it expand its size and the number of brands it owns. This series of acquisitions has made Cavco one of the largest builders of factory-built homes in the United States.
What it actually does
Cavco builds homes in a factory setting, which is different from traditional homes built on-site from the ground up. Think of it like how cars are made on an assembly line; this controlled environment can lead to faster construction and potentially lower costs. Their products range from manufactured homes and modular homes (homes built in sections and assembled on-site) to smaller park model RVs and vacation cabins. The company sells these homes through a network of independent dealers and its own retail stores, and also offers financing and insurance to homebuyers.
Factory-Built Housing
This is Cavco's main business and generates the vast majority of its revenue (the total money it brings in from sales). In this segment, the company designs and builds different types of factory-made homes, including manufactured homes, modular homes, and smaller cabins. The customers for these homes are typically individuals and families looking for affordable housing options, as well as residential developers and planned community operators. Cavco sells these homes through both independent retailers and its own network of company-owned stores.
Financial Services
This is a smaller but important part of Cavco's business that supports the sale of its homes. Through its subsidiaries, like CountryPlace Mortgage and Standard Casualty, Cavco offers loans and insurance to people buying its factory-built homes. This makes it easier for customers to purchase a home by providing a one-stop-shop experience for both the house and the financing (a loan to pay for the home over time). This segment earns money through interest on loans and from insurance premiums (the regular payments customers make for insurance coverage).
What management is betting on now
Cavco's leadership is focused on the significant shortage of affordable housing in the U.S., believing their factory-built homes are a key solution. They are investing in expanding their production capacity (the number of homes they can build), including constructing new, modern manufacturing facilities. The company also continues to acquire other homebuilders to grow its market share (its portion of total industry sales) and regional presence. Additionally, management is unifying its many different brands under the single Cavco name to strengthen its national identity and make it easier for customers to find the right home.
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 $545.39 vs current price $548.04
Wall Street consensus is the average analyst price target: $646.67 (18.6% higher than our fair-value estimate).
Our most-likely fair value is $545.39 a share — about 0.5% away from today's price of $548.04, 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 $1.00B 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 21.2% 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)
23.87x
Forward P/E
19.01x
P/B
3.80x
P/S
1.83x
EV/EBITDA
15.80x
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
22.96
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
—
Payout ratio
0.0%
Last ex-div date
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