Cavco Industries (CVCO) AI Stock Analysis

• Market Cap: $4.68B
• Dividend Yield: N/A
• Average Volume (3M): 129.87K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.89
• Revenue Growth: 15.81%
• EPS Growth: 37.89%
• Country: US
• Employees: 6,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 6.55
• Shares Outstanding: 7,805,037
• 10 Day Avg. Volume: 154,695
• 30 Day Avg. Volume: 129,865
• PEG Ratio: 1.88
• Price to Book (P/B): 3.94
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 26.69
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 8.23
• Enterprise Value/Ebitda: 15.80
• 1Y Price Target: $575.00
• Price Target Upside: -6.36% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 24.53
• Revenue Forecast (FY): $2.19B

• Rating: 81 Outperform
• Price Target: $647.00 ▲(5.37% Upside)

Cavco Industries exhibits strong financial performance with robust profitability and a solid balance sheet. The recent earnings call was positive, highlighting revenue growth and strategic acquisitions. Technical indicators suggest stable price action, while valuation is moderate. Corporate events further bolster strategic positioning.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Strength

A robust balance sheet with increased cash reserves enhances financial stability and provides flexibility for future investments.

Strategic Acquisition

The acquisition expands Cavco's market presence and operational scale, positioning it for enhanced growth and competitive advantage.

Negative Factors

Regional Shipment Disparities

Regional shipment declines may indicate market saturation or competitive pressures, potentially impacting revenue in key areas.

Impact of Tariffs

Higher tariffs on materials can increase production costs, squeezing margins and affecting profitability in the long term.

Slight Decline in Wholesale Orders

A decline in wholesale orders suggests potential weakening demand or market uncertainties, which could affect future sales growth.

Cavco Industries Business Overview & Revenue Model

Company Description

Cavco Industries, Inc. (CVCO) is a leading manufacturer of manufactured and modular homes, offering a diverse range of housing products through its various subsidiaries. Established in 1965, the company operates primarily in the home building sector and is involved in the design, construction, and sale of factory-built homes. Cavco also provides services related to the development of land for residential use, including the sale of vacation and recreational homes. The company is committed to delivering high-quality affordable housing solutions across the United States.

How the Company Makes Money

Cavco Industries generates revenue primarily through the sale of manufactured and modular homes, which includes both single-section and multi-section homes. The company has several key revenue streams, including home sales, the sale of related products such as home accessories and components, and the production of park model RVs. Additionally, Cavco earns income from its financial services segment, which offers retail and wholesale financing for home purchases. Significant partnerships with land developers and retailers also contribute to its earnings by expanding its market reach and facilitating the sale of homes. The company's focus on affordable housing solutions positions it well to capitalize on market demand, particularly in areas with growing populations and housing shortages.

Cavco Industries Financial Statement Overview

Summary

Cavco Industries demonstrates strong financial performance with consistent revenue growth and healthy profitability margins. The balance sheet is solid with low leverage, and cash flow generation is robust, supporting operational and strategic initiatives. However, the high equity ratio suggests potential limitations in financial flexibility.

Income Statement

Cavco Industries demonstrates strong financial performance with consistent revenue growth, highlighted by a 3.93% increase in TTM. The company maintains healthy profitability margins, including a gross profit margin of 23.47% and a net profit margin of 8.99%. The EBIT and EBITDA margins are also robust at 11.13% and 12.07% respectively, indicating efficient operational management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.03, suggesting minimal leverage risk. The return on equity is strong at 17.81%, indicating effective use of equity capital. However, the equity ratio of 75.01% suggests a high reliance on equity financing, which could limit financial flexibility.

Cash Flow

Cavco Industries shows a positive cash flow trajectory with a 2.53% growth in free cash flow. The operating cash flow to net income ratio is 0.59, and the free cash flow to net income ratio is 0.86, indicating good cash conversion efficiency. The company effectively generates cash from operations, supporting its financial stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.14B	2.02B	1.79B	2.14B	1.63B	1.11B
Gross Profit	509.98M	465.59M	426.90M	554.93M	408.75M	238.98M
EBITDA	265.63M	230.85M	219.35M	324.58M	223.71M	103.97M
Net Income	196.81M	171.04M	157.82M	240.55M	197.70M	76.65M
Balance Sheet
Total Assets	1.45B	1.41B	1.35B	1.31B	1.15B	1.15B
Cash, Cash Equivalents and Short-Term Investments	391.84M	376.07M	370.96M	286.40M	264.24M	264.24M
Total Debt	30.36M	45.14M	35.15M	36.56M	24.78M	24.78M
Total Liabilities	362.93M	342.06M	320.75M	330.47M	323.69M	323.69M
Stockholders Equity	1.09B	1.06B	1.03B	976.29M	830.46M	830.46M
Cash Flow
Free Cash Flow	179.97M	157.07M	207.26M	211.59M	125.57M	125.57M
Operating Cash Flow	210.42M	178.50M	224.68M	255.69M	144.22M	144.22M
Investing Cash Flow	-33.08M	-23.95M	-31.71M	-129.34M	-159.10M	-159.10M
Financing Cash Flow	-163.60M	-147.95M	-107.71M	-102.20M	-65.09M	-65.09M

Cavco Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 614.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 614.03 is above the 20-day moving average (MA) of 586.78, above the 50-day MA of 563.68, and above the 200-day MA of 505.41, indicating a bullish trend. The MACD of 11.02 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVCO.

Cavco Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVCO	81 Outperform	$4.68B	25.22	18.50%	―	15.81%	37.89%
SKY	78 Outperform	$4.81B	22.62	14.37%	―	12.14%	48.68%
KBH	75 Outperform	$4.08B	8.83	13.04%	1.59%	-0.95%	-9.22%
MHO	75 Outperform	$3.49B	7.81	15.76%	―	4.77%	-9.30%
GRBK	73 Outperform	$2.85B	8.60	20.37%	―	6.62%	-1.90%
TPH	73 Outperform	$2.82B	9.74	9.47%	―	-16.60%	-29.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Cavco Industries Corporate Events

Cavco Industries Appoints Lisa Daniels to Board

On October 28, 2025, Cavco Industries announced the appointment of Lisa L. Daniels to its Board of Directors, effective October 27, 2025. Ms. Daniels, a former Vice Chair of Growth and Strategy at KPMG, brings over 35 years of professional services experience to Cavco, enhancing the board’s expertise in financial, regulatory, and technology-related risks. Her appointment is expected to bolster Cavco’s strategic direction and governance, aligning with the company’s focus on addressing affordable housing challenges.

Cavco Industries Completes Acquisition of American Homestar

On September 29, 2025, Cavco Industries completed the acquisition of American Homestar Corporation, a Texas-based factory-built housing company operating under the name Oak Creek Homes. The acquisition, valued at $190 million, was funded with cash on hand and is expected to enhance Cavco’s strategic positioning in the market. The merger, which received all necessary regulatory approvals, is anticipated to create new opportunities for growth and strengthen Cavco’s operations and market presence.