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CVCO

Cavco Industries NasdaqGS:CVCO Stock Report

Last Price

US$214.31

Market Cap

US$1.9b

7D

0.5%

1Y

-12.5%

Updated

28 Sep, 2022

Data

Company Financials +
CVCO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends0/6

CVCO Stock Overview

Cavco Industries, Inc. designs, produces, and retails manufactured homes primarily in the United States.

Cavco Industries, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cavco Industries
Historical stock prices
Current Share PriceUS$214.31
52 Week HighUS$327.24
52 Week LowUS$179.47
Beta1.16
1 Month Change-13.01%
3 Month Change9.35%
1 Year Change-12.53%
3 Year Change13.24%
5 Year Change41.55%
Change since IPO2,757.47%

Recent News & Updates

Sep 19
Here's Why Cavco Industries (NASDAQ:CVCO) Has Caught The Eye Of Investors

Here's Why Cavco Industries (NASDAQ:CVCO) Has Caught The Eye Of Investors

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Sep 18

Cavco Industries: A Change In Opinion

Summary Recently, financial performance achieved by Cavco Industries has been incredibly robust and the company has so far shown little in the way of weakness in this market. It's also true that there is risk of a downturn in housing that could affect the enterprise and that could hurt shareholders in the near to intermediate term. Until this picture clears up, there might be better places to allocate capital to. Housing markets seem to be in a very interesting position. On one hand, it's well known that there is a national housing shortage in the US. On the other hand, it's also true that inflationary pressures and rising interest rates are damaging to the demand for housing. In the long run, the shortage will win out. But that doesn't change the fact that, in the near term, we could still see some additional pain in the space. Despite the prospect of pain, one company that seems to be holding up pretty well in this current environment is Cavco Industries (CVCO), an enterprise that generates revenue by producing and selling factory-built homes to customers that are often lower income than those who would buy more traditional homes. Due in part to an acquisition, but also because of strong pricing power and strong demand, revenue has been rising significantly and profits have followed suit. If this trend continues, shares could experience a tremendous amount of upside. But with the prospect of the housing market weakening, there is some risk of financial performance reverting back to what it was in prior years. I truly have a hard time believing that the firm would experience a significant amount of downside should the market deteriorate further, but it's also likely the case that upside is limited until current economic considerations clear up. Great performance so far The last time I wrote an article about Cavco Industries was back in June of this year. In that article, I talked about how the company had been hit hard by the general market downturn in the months leading up to the release of the article. I also warned that if financial performance were to revert back to the levels that we experienced during the company's 2021 fiscal year, there could be some pain for investors. But any scenario shy of that would likely result in shares trading at attractive enough levels to offer either some upside or limited downside if things don't go well. Since the publication of that article where I rated the company a 'buy', it has outperformed the broader market nicely, generating a return for investors of 8.8%. That compares to the 2.3% increase seen by the S&P 500 over the same time frame. Author - SEC EDGAR Data This return disparity was not without cause. In fact, I'm a little surprised that shares haven't risen even more significantly. When I last wrote about the company, we only had data covering through the final quarter of the firm's 2022 fiscal year. Fast forward to today, and we now have data covering through the first quarter of 2023 as well. What management has presented looks incredibly bullish in and of itself. As an example, we need only to look at revenue. Sales for the latest quarter came in strong at $588.3 million. That represents an increase of 78.1% over the $330.4 million in revenue generated the same time one year earlier. To be clear, about $101 million of this increase came from the company's acquisition of rival Commodore. However, there were other contributors to the increase. For instance, the net factory-built housing revenue per home sold that the company generated came in at $107,108. That's 26.9% above the $84,401 generated just one year earlier. In terms of overall product volume, the company saw the number of homes sold rise from 3,700 in the first quarter of its 2022 fiscal year to 5,346 the same time this year, while the number of modules grew from 6,318 to 9,242. Author - SEC EDGAR Data This rise in revenue brought with it a significant improvement in profitability. Net income for the quarter came in at $59.6 million. That's more than double the $27 million generated the same time one year earlier. Although the company was hit by a decline in revenue associated with its financial services and a corresponding margin decrease in financial services activities, the gross profit margin associated with its factory-built housing rose from 21.2% to 24.4%. This was due, management said, mostly to higher average sales prices, increased home sales volume, and a few other items. This increase in profits also brought with it a rise in cash flow. Operating cash flow, for instance, rose from $24.3 million in the first quarter of 2022 to $58.2 million the same time this year. If we adjust for changes in working capital, the increase year over year would have been greater, with the metric climbing from $22.7 million to $61.7 million. Meanwhile, EBITDA for the company also increased, rising from $34.6 million to $82.4 million. It is worth noting that there are some other items that warrant discussion. For instance, management was very active in buying back stock. During the first quarter alone, they allocated $39 million to buy back shares. Clearly, they are bullish about their own business. On top of that, the company has no debt and has cash and cash equivalents of $268.8 million. So the firm could buy a significant amount of stock back still or it can make sure it has a proper cash cushion to weather any pain that might be around the corner. The only bad thing that I saw recently was a decrease in backlog. The metric dropped from around $1.1 billion to $998 million. Admittedly, this is still higher than the $792 million seen just one year earlier. This is important because it's a sign of future revenue. And in subsequent quarters, investors would be wise to keep a close eye on this to see just how the outlook for the space will look moving forward. Author - SEC EDGAR Data Management has not, unfortunately, provided any real guidance for the current fiscal year. But if we were to annualize results seen during the first quarter alone, we would anticipate net income of $436.4 million, adjusted operating cash flow of $520.5 million, and EBITDA of roughly $520.6 million. This would translate to a forward price to earnings multiple of 4.2, a forward price to adjusted operating cash flow multiple of 3.5, and a forward EV to EBITDA multiple of 3. Of course, it would be unwise to assume that market conditions will allow that trend to continue. If, instead, the company were to revert back to the levels of profitability seen in the 2022 fiscal year, these multiples would be 9.3, 9.6, and 7.1, respectively. Investors would be right to point out that the acquisition of Commodore made a complete turn back to 2022 levels unlikely. But it's worth noting, as the chart above illustrates, that the difference in financial performance, particularly on the bottom line, that would have been seen had Commodore been incorporated for the entirety of the 2022 fiscal year, it's not all that different than what the company did ultimately experience.

Sep 05
We Think Cavco Industries (NASDAQ:CVCO) Might Have The DNA Of A Multi-Bagger

We Think Cavco Industries (NASDAQ:CVCO) Might Have The DNA Of A Multi-Bagger

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...

Aug 08
Need To Know: Analysts Are Much More Bullish On Cavco Industries, Inc. (NASDAQ:CVCO)

Need To Know: Analysts Are Much More Bullish On Cavco Industries, Inc. (NASDAQ:CVCO)

Shareholders in Cavco Industries, Inc. ( NASDAQ:CVCO ) may be thrilled to learn that the analysts have just delivered a...

Shareholder Returns

CVCOUS Consumer DurablesUS Market
7D0.5%-0.3%-2.0%
1Y-12.5%-32.7%-20.3%

Return vs Industry: CVCO exceeded the US Consumer Durables industry which returned -35.6% over the past year.

Return vs Market: CVCO exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is CVCO's price volatile compared to industry and market?
CVCO volatility
CVCO Average Weekly Movement5.6%
Consumer Durables Industry Average Movement6.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: CVCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CVCO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19656,300Bill Boorhttps://www.cavco.com

Cavco Industries, Inc. designs, produces, and retails manufactured homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its manufactured homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, and MidCountry brands.

Cavco Industries, Inc. Fundamentals Summary

How do Cavco Industries's earnings and revenue compare to its market cap?
CVCO fundamental statistics
Market CapUS$1.91b
Earnings (TTM)US$230.26m
Revenue (TTM)US$1.89b

8.3x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVCO income statement (TTM)
RevenueUS$1.89b
Cost of RevenueUS$1.41b
Gross ProfitUS$458.91m
Other ExpensesUS$228.65m
EarningsUS$230.26m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)25.89
Gross Margin24.34%
Net Profit Margin12.21%
Debt/Equity Ratio1.3%

How did CVCO perform over the long term?

See historical performance and comparison