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Cavco Industries
(NASDAQ:CVCO)
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Rating:74Outperform
Price Target:
$613.00
▲(7.59% Upside)
Action:Reiterated
Date:08/03/26
CVCO’s score is driven primarily by strong financial quality (notably very low leverage and solid free cash flow) and a positive operational outlook from the latest call (orders/backlog, shipments, and ongoing repurchases). The score is held back by weaker near-term technical positioning (below key moving averages) and margin pressure/tariff-driven cost headwinds, while valuation appears moderate with no dividend support provided.
Positive Factors
Very low leverage / strong balance sheet
Debt-to-equity near 0.03 gives durable financial flexibility in a cyclical construction sector. Low leverage supports continued capital allocation to buybacks, M&A, factory buildouts and working-capital swings without raising material refinancing risk, preserving long-term optionality.
Negative Factors
Gross margin compression from cost pressures
A sustained decline in gross margins driven by higher manufacturing costs and retail pricing pressure threatens durable profitability. If tariffs and commodity inflation persist, cost recovery may lag competitive price resistance, structurally compressing returns on new volumes until input costs normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Debt-to-equity near 0.03 gives durable financial flexibility in a cyclical construction sector. Low leverage supports continued capital allocation to buybacks, M&A, factory buildouts and working-capital swings without raising material refinancing risk, preserving long-term optionality.
Read all positive factors
Cavco Industries (CVCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.22B
Dividend YieldN/A
Average Volume (3M)141.61K
Price to Earnings (P/E)23.5
Beta (1Y)0.86
Revenue Growth9.69%
EPS Growth-0.39%
CountryUS
Employees7,700
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)23.25
Shares Outstanding7,707,531
10 Day Avg. Volume128,091
30 Day Avg. Volume141,606
Financial Highlights & Ratios
PEG Ratio1.22
Price to Book (P/B)3.32
Price to Sales (P/S)1.63
P/FCF Ratio15.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$700.00Price Target Upside22.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)23.95
Revenue Forecast (FY)$2.38B
Cavco Industries Business Overview & Revenue Model
Company Description
Cavco Industries, Inc. (CVCO) is a prominent American enterprise primarily focused on the manufacturing, marketing, and retail sale of prefabricated residential dwellings. Its operations are structured into two core divisions: Factory-Built Housin...
How the Company Makes Money
Cavco makes money primarily by manufacturing and selling factory-built homes. The largest revenue stream is home sales, which are generated when Cavco sells manufactured and modular homes through a network of independent dealers, company-owned ret...
Cavco Industries Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveys strong operational momentum — record shipments, broad-based double-digit order growth across regions and channels, a >50% backlog increase, revenue growth and a pronounced improvement in Financial Services and insurance results. Management also generated significant cash and continued sizable share repurchases. Offsetting these positives were margin compression in factory-built operations (driven by higher manufacturing costs and localized retail pricing pressure), tariff-driven COGS headwinds (~$5M), and declines in pretax/net income and EPS. Management highlighted capacity to increase production (75% utilization) and long-term regulatory tailwinds (ROAD to Housing Act) that support optimism. Overall, the positive operational momentum, cash generation and strategic positioning outweigh the near-term margin and tax headwinds.Positive Updates
Record Shipments and Significant Backlog Growth
Quarterly record shipments of 5,657 units (first quarter record); sequential shipments up ~13%; backlog grew more than 50% sequentially and is ~50% higher than a year ago (backlog at ~7–9 weeks).
Negative Updates
Gross Margin Compression — Factory-Built and Consolidated
Consolidated gross margin fell to 22.1% from 23.3% year-over-year (down 120 basis points). Factory-built housing gross profit declined to 20.8% from 22.6% YoY (down ~180 basis points); factory-built gross margin also dropped ~40 basis points sequentially driven by higher manufacturing costs and lower retail pricing in company-owned stores.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Shipments and Significant Backlog Growth
Quarterly record shipments of 5,657 units (first quarter record); sequential shipments up ~13%; backlog grew more than 50% sequentially and is ~50% higher than a year ago (backlog at ~7–9 weeks).
Read all positive updates
Company Guidance
Management said strong order momentum should continue to support higher production and volume upside — backlog rose more than 50% sequentially and year‑over‑year to roughly a 7–9 week backlog, shipments hit a record 5,657 units with factory utilization at ~75% (leaving room to scale), and Q1 net revenue was $610.0M (+9.5% YoY) with factory‑built revenue $586.0M (+9.4%) and Financial Services revenue $24.0M (+13.3%); they expect continued growth in loan originations and loan sales and reiterated ongoing investments (SG&A $81.8M, 13.4% of revenue) to support the pipeline while absorbing margin headwinds (consolidated gross margin 22.1% vs 23.3% LY; factory‑built gross 20.8% vs 22.6% LY) including an estimated ~$5M quarterly COGS pressure from tariffs/inflation; Q1 pretax profit was $55.8M (‑14.6% YoY), net income $42.3M, EPS $5.43, cash from operations $74.5M, they repurchased $30M of stock in the quarter (>$600M total repurchased to date, >19% of shares; ~$188M repurchase authorization remaining) and ended the period with ~$243M unrestricted cash (~$266.2M cash and restricted cash).Cavco Industries Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.30B | 2.24B | 2.02B | 1.79B | 2.14B | 1.63B |
| Gross Profit | 531.97M | 526.89M | 465.59M | 426.90M | 554.93M | 408.75M |
| EBITDA | 257.65M | 268.28M | 230.85M | 219.35M | 324.58M | 223.71M |
| Net Income | 181.18M | 190.55M | 171.04M | 157.82M | 240.55M | 197.70M |
Balance Sheet | ||||||
| Total Assets | 1.54B | 1.49B | 1.41B | 1.35B | 1.31B | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 261.47M | 273.26M | 376.07M | 370.96M | 286.40M | 264.24M |
| Total Debt | 39.79M | 30.75M | 45.14M | 35.15M | 36.56M | 24.78M |
| Total Liabilities | 431.05M | 387.96M | 342.06M | 320.75M | 330.47M | 323.69M |
| Stockholders Equity | 1.11B | 1.10B | 1.06B | 1.03B | 976.29M | 830.46M |
Cash Flow | ||||||
| Free Cash Flow | 234.66M | 232.09M | 157.07M | 207.26M | 211.59M | 125.57M |
| Operating Cash Flow | 286.42M | 267.49M | 178.50M | 224.68M | 255.69M | 144.22M |
| Investing Cash Flow | -242.21M | -222.44M | -23.95M | -31.71M | -129.34M | -159.10M |
| Financing Cash Flow | -146.41M | -162.79M | -147.95M | -107.71M | -102.20M | -65.09M |
Cavco Industries Technical Analysis
Positive
569.77
Price Trends
574.53
Positive
535.30
Positive
558.81
Positive
Market Momentum
-0.68
Negative
52.68
Neutral
73.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVCO, the sentiment is Positive. The current price of 569.77 is above the 20-day moving average (MA) of 568.44, below the 50-day MA of 574.53, and above the 200-day MA of 558.81, indicating a bullish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVCO.
Cavco Industries Risk Analysis
Cavco Industries disclosed 36 risk factors in its most recent earnings report. Cavco Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cavco Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.22B | 23.53 | 16.51% | ― | 9.69% | -0.39% | |
73 Outperform | $3.04B | 10.60 | 15.42% | ― | -8.66% | -14.97% | |
71 Outperform | $4.37B | 21.75 | 12.11% | ― | 7.26% | 6.61% | |
70 Outperform | $3.74B | 12.04 | 9.97% | ― | -4.94% | -35.08% | |
64 Neutral | $3.37B | 13.09 | 7.04% | 1.74% | -17.52% | -45.77% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
CVCO
Cavco Industries
578.17
126.68
28.06%
KBH
KB Home
56.95
-0.80
-1.39%
MHO
M/I Homes
146.83
17.65
13.66%
SKY
Champion Homes
91.52
24.02
35.59%
GRBK
Green Brick Partners
71.44
6.96
10.79%
Cavco Industries Corporate Events
Executive/Board ChangesShareholder Meetings
Cavco Industries Shareholders Back Board and Governance Actions
Positive
Jul 31, 2026
On July 28, 2026, Cavco Industries, Inc. held its 2026 Annual Meeting of Stockholders, with approximately 90% of outstanding shares represented in person or by proxy. Shareholders elected Susan L. Blount, Bill C. Boor, and Lisa L. Daniels to three...
Business Operations and StrategyStock BuybackFinancial Disclosures
Cavco Industries Posts Strong Results, Adds New Buyback Plan
Positive
May 22, 2026
Cavco Industries reported strong results for the fourth quarter and fiscal year ended March 28, 2026, with quarterly net revenue up 8% year on year to $550 million and net income rising to $42 million, or $5.42 per diluted share. For the full year...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.