NasdaqGS:CVCO

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 13.9% below its fair value

Earnings are forecast to grow 9.63% per year

Risk Analysis

No risks detected for CVCO from our risk checks.


Snowflake Analysis

Excellent balance sheet with questionable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

CVCO

4.0%

US Consumer Durables

1.7%

US Market


1 Year Return

42.8%

CVCO

36.9%

US Consumer Durables

23.6%

US Market

Return vs Industry: CVCO exceeded the US Consumer Durables industry which returned 33.1% over the past year.

Return vs Market: CVCO exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

CVCOIndustryMarket
7 Day3.9%4.0%1.7%
30 Day8.8%4.5%3.5%
90 Day7.6%5.1%11.7%
1 Year42.8%42.8%38.9%36.9%26.2%23.6%
3 Year123.7%123.7%35.3%29.1%53.2%43.3%
5 Year192.7%192.7%42.9%33.2%75.5%56.1%

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?

10.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVCO ($207.33) is trading below our estimate of fair value ($240.7)

Significantly Below Fair Value: CVCO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CVCO is poor value based on its PE Ratio (25x) compared to the Consumer Durables industry average (13.7x).

PE vs Market: CVCO is poor value based on its PE Ratio (25x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CVCO is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: CVCO is overvalued based on its PB Ratio (3.3x) compared to the US Consumer Durables industry average (1.4x).


Next Steps

Future Growth

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

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVCO's forecast earnings growth (9.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CVCO's earnings (9.6% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: CVCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: CVCO's revenue (8.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CVCO's revenue (8.7% per year) is forecast to grow slower than 20% 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?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVCO has high quality earnings.

Growing Profit Margin: CVCO's current net profit margins (7.5%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: CVCO's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: CVCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CVCO had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (-1.5%).


Return on Equity

High ROE: CVCO's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cavco Industries's financial position?


Financial Position Analysis

Short Term Liabilities: CVCO's short term assets ($486.6M) exceed its short term liabilities ($169.7M).

Long Term Liabilities: CVCO's short term assets ($486.6M) exceed its long term liabilities ($31.1M).


Debt to Equity History and Analysis

Debt Level: CVCO's debt to equity ratio (2.7%) is considered satisfactory.

Reducing Debt: CVCO's debt to equity ratio has reduced from 22.2% to 2.7% over the past 5 years.

Debt Coverage: CVCO's debt is well covered by operating cash flow (385.9%).

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 32x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of Cavco Industries's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Bill Boor (53yo)

0.8yrs

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 ...


Management Age and Tenure

1.0yrs

Average Tenure

59yo

Average Age

Experienced Management: CVCO's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

58yo

Average Age

Experienced Board: CVCO's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$9,65120 Nov 19
Associated Capital Group Inc, Asset Management Arm
EntityCompany
Shares50
Max PriceUS$196.40
SellUS$799,35020 Nov 19
GAMCO Investors, Inc.
EntityCompany
Shares4,800
Max PriceUS$206.36
SellUS$107,18020 Nov 19
Teton Advisors, Inc
EntityCompany
Shares555
Max PriceUS$193.12

Ownership Breakdown

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


Management Team

  • Larry Keener (69yo)

    President of Palm Harbor Villages Inc

    • Compensation: US$892.59k
  • Steven Like (62yo)

    Senior VP of Administration

    • Compensation: US$373.49k
  • Bill Boor (53yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$407.52k
  • Charles Lott (71yo)

    President of Fleetwood Homes Inc

    • Tenure: 10.4yrs
    • Compensation: US$872.58k
  • Dan Urness (51yo)

    Executive VP

    • Tenure: 0.8yrs
    • Compensation: US$979.68k
  • Mick Dragash (49yo)

    Executive VP

    • Tenure: 1yrs
  • Gavin Ryan (59yo)

    President of Standard Casualty Company

    • Tenure: 1yrs
  • Joshua Barsetti (39yo)

    Chief Accounting Officer

    • Tenure: 1.4yrs
    • Compensation: US$417.98k
  • Lyle Zeller (63yo)

    President of CountryPlace Mortgage

    • Tenure: 1yrs
  • Simone Reynolds

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.2yrs

Board Members

  • Steve Bunger (58yo)

    Non-Executive Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$307.45k
  • Bill Boor (53yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$407.52k
  • David Greenblatt (58yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$362.06k
  • Susan Blount (61yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$463.00k
  • Rich Kerley (69yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$475.50k
  • Julia Sze (52yo)

    Independent Director

    • Tenure: 0.7yrs

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$1.946b
  • Shares outstanding: 9.13m
  • 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 Analysis2020/01/20 23:53
End of Day Share Price2020/01/17 00:00
Earnings2019/09/28
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.