Cavco Industries, Inc.
Cavco Industries, Inc. Fundamental Analysis
Cavco Industries, Inc. (CVCO) shows moderate financial fundamentals with a PE ratio of 21.20, profit margin of 8.37%, and ROE of 17.14%. The company generates $2.2B in annual revenue with strong year-over-year growth of 12.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CVCO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCVCO demonstrates superior asset utilization.
Valuation Score
ExcellentCVCO trades at attractive valuation levels.
Growth Score
ExcellentCVCO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCVCO maintains a strong and stable balance sheet.
Profitability Score
ModerateCVCO maintains healthy but balanced margins.
Key Financial Metrics
Is CVCO Expensive or Cheap?
P/E Ratio
CVCO trades at 21.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CVCO's PEG of -4.01 indicates potential undervaluation.
Price to Book
The market values Cavco Industries, Inc. at 3.59 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.90 times EBITDA. This signals the market has high growth expectations.
How Well Does CVCO Make Money?
Net Profit Margin
For every $100 in sales, Cavco Industries, Inc. keeps $8.37 as profit after all expenses.
Operating Margin
Core operations generate 9.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.14 in profit for every $100 of shareholder equity.
ROA
Cavco Industries, Inc. generates $12.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cavco Industries, Inc. produces operating cash flow of $236.26M, showing steady but balanced cash generation.
Free Cash Flow
Cavco Industries, Inc. produces free cash flow of $203.12M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $26.02 in free cash annually.
FCF Yield
CVCO converts 5.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How CVCO Stacks Against Its Sector Peers
| Metric | CVCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.20 | 23.52 | Neutral |
| ROE | 17.14% | 1156.00% | Weak |
| Net Margin | 8.37% | 670.00% | Weak |
| Debt/Equity | 0.06 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.49 | 2.56 | Strong Liquidity |
| ROA | 12.53% | -8289.00% (disorted) | Strong |
CVCO outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cavco Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
112.43%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
154.98%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
96.34%
Industry Style: Cyclical, Growth, Discretionary
High Growth