NasdaqGS:CVCO

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Cavco Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CVCO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

CVCO

6.5%

US Consumer Durables

5.3%

US Market


1 Year Return

14.6%

CVCO

-20.6%

US Consumer Durables

-10.7%

US Market

Return vs Industry: CVCO exceeded the US Consumer Durables industry which returned -20.6% over the past year.

Return vs Market: CVCO exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

CVCOIndustryMarket
7 Day1.0%6.5%5.3%
30 Day-30.1%-30.3%-13.6%
90 Day-26.9%-33.9%-19.8%
1 Year14.6%14.6%-19.5%-20.6%-8.9%-10.7%
3 Year24.7%24.7%-20.6%-24.2%15.5%8.0%
5 Year95.7%95.7%-15.7%-21.4%35.2%20.4%

Price Volatility Vs. Market

How volatile is Cavco Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cavco Industries undervalued compared to its fair value and its price relative to the market?

33.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVCO ($143.65) is trading below our estimate of fair value ($215.02)

Significantly Below Fair Value: CVCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CVCO is poor value based on its PE Ratio (15.8x) compared to the Consumer Durables industry average (7.6x).

PE vs Market: CVCO is poor value based on its PE Ratio (15.8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CVCO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CVCO is overvalued based on its PB Ratio (2.2x) compared to the US Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Cavco Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVCO's earnings are forecast to decline over the next 3 years (-5.8% per year).

Earnings vs Market: CVCO's earnings are forecast to decline over the next 3 years (-5.8% per year).

High Growth Earnings: CVCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CVCO's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: CVCO's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CVCO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cavco Industries performed over the past 5 years?

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVCO has high quality earnings.

Growing Profit Margin: CVCO's current net profit margins (7.9%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: CVCO's earnings have grown significantly by 27.9% per year over the past 5 years.

Accelerating Growth: CVCO's earnings growth over the past year (17.2%) is below its 5-year average (27.9% per year).

Earnings vs Industry: CVCO earnings growth over the past year (17.2%) exceeded the Consumer Durables industry 10%.


Return on Equity

High ROE: CVCO's Return on Equity (13.9%) is considered low.


Next Steps

Financial Health

How is Cavco Industries's financial position?


Financial Position Analysis

Short Term Liabilities: CVCO's short term assets ($502.0M) exceed its short term liabilities ($161.8M).

Long Term Liabilities: CVCO's short term assets ($502.0M) exceed its long term liabilities ($30.4M).


Debt to Equity History and Analysis

Debt Level: CVCO's debt to equity ratio (2.5%) is considered satisfactory.

Reducing Debt: CVCO's debt to equity ratio has reduced from 21.5% to 2.5% over the past 5 years.

Debt Coverage: CVCO's debt is well covered by operating cash flow (566.6%).

Interest Coverage: Insufficient data to determine if CVCO's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: CVCO has a high level of physical assets or inventory.

Debt Coverage by Assets: CVCO's debt is covered by short term assets (assets are 33.5x debt).


Next Steps

Dividend

What is Cavco Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CVCO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CVCO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CVCO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CVCO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CVCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Bill Boor (53yo)

1

Tenure

US$407,520

Compensation

Mr. William C. Boor, also known as Bill, has been the Chief Executive Officer of Great Lakes Brewing Company since September 2015. From December 2014 to September 2015, Mr. Boor was Principal of MIB Holdin ...


Leadership Team

NamePositionTenureCompensationOwnership
William Boor
President1yrUS$407.52k0.041% $547.4k
Daniel Urness
Executive VP1yrUS$979.68k0.24% $3.1m
Steven Like
Senior VP of Administrationno dataUS$373.49k0.019% $252.8k
Charles Lott
President of Fleetwood Homes Inc10.67yrsUS$872.58kno data
Mark Fusler
Director of Financial Reporting & Investor Relationsno datano datano data
Mickey Dragash
Executive VP1.25yrsno datano data
Simone Reynolds
Senior VP & Chief Human Resources Officer0.42yrno datano data
Gavin Ryan
President of Standard Casualty Company1.25yrsno data0.00045% $6.0k
Lyle Zeller
President of CountryPlace Mortgage1.25yrsno datano data

1.3yrs

Average Tenure

59yo

Average Age

Experienced Management: CVCO's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Boor
President1yrUS$407.52k0.041% $547.4k
Steven Bunger
Non-Executive Chairman of the Board1yrUS$307.45k0.0027% $36.2k
David Greenblatt
Independent Director11.5yrsUS$362.06k0.14% $1.8m
Susan Blount
Independent Director1.25yrsUS$463.00kno data
Steven Moster
Independent Director0.25yrno datano data
Richard Kerley
Independent Director1.17yrsUS$475.50kno data
Julia Sze
Independent Director0.92yrno data0.0016% $21.7k

1.2yrs

Average Tenure

58yo

Average Age

Experienced Board: CVCO's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cavco Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cavco Industries, Inc.
  • Ticker: CVCO
  • Exchange: NasdaqGS
  • Founded: 1965
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$1.325b
  • Shares outstanding: 9.14m
  • Website: https://www.cavco.com

Number of Employees


Location

  • Cavco Industries, Inc.
  • 3636 North Central Avenue
  • Suite 1200
  • Phoenix
  • Arizona
  • 85012
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVCONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2003

Biography

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, Fairmont, Friendship, Chariot Eagle, and Lexington brands. It also builds park model RVs; vacation cabins; and systems-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces modular homes, such as single and multi-module ranch, split-level, and Cape Cod style homes, as well as two and three story homes and multi-family units primarily under the Nationwide Homes brand. Further, it provides conforming mortgages, non-conforming mortgages, and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail sales centers, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. As of March 30, 2019, it operated 38 retail centers in Oregon, Arizona, New Mexico, Texas, Oklahoma, and Florida, Texas. The company also distributes its homes through a network of independent distribution points in 44 states and Canada; and through planned community operators and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 04:19
End of Day Share Price2020/03/31 00:00
Earnings2019/12/28
Annual Earnings2019/03/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.