Cavco Industries, Inc. (CVCO)
NASDAQ:CVCO
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Cavco Industries
(NASDAQ:CVCO)
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Rating:78Outperform
Price Target:
$580.00
▲(7.59% Upside)
Action:Upgraded
Date:05/23/26
The score is led by strong financial performance—especially a very low-leverage balance sheet and solid, improving free cash flow—supported by a generally positive earnings-call read-through (record shipments, synergy capture, and ongoing buybacks). The rating is tempered by mixed technicals (below longer-term moving averages with negative MACD) and a mid-range valuation (P/E ~19) with no dividend yield provided.
Positive Factors
Conservative balance sheet
Cavco's exceptionally low leverage and steadily increasing equity provide durable financial flexibility. That capital strength supports plant investments, acquisitions, and buybacks without heavy borrowing, reduces refinancing risk during downturns, and preserves strategic optionality across housing cycles.
Negative Factors
Input cost and tariff pressure
Rising lumber, OSB and steel costs and tariff uncertainty represent structural margin risk for factory-built housing. With cost pass-through lag and competitive pricing constraints, sustained commodity inflation can materially compress gross margins unless offset by productivity, pricing power, or sourcing changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Cavco's exceptionally low leverage and steadily increasing equity provide durable financial flexibility. That capital strength supports plant investments, acquisitions, and buybacks without heavy borrowing, reduces refinancing risk during downturns, and preserves strategic optionality across housing cycles.
Read all positive factors
Cavco Industries (CVCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.12B
Dividend YieldN/A
Average Volume (3M)141.88K
Price to Earnings (P/E)21.8
Beta (1Y)0.88
Revenue Growth11.36%
EPS Growth15.51%
CountryUS
Employees6,500
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)24.26
Shares Outstanding7,683,979
10 Day Avg. Volume177,626
30 Day Avg. Volume141,882
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 Cap0.95
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit7.39
Enterprise Value/Ebitda15.65
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)24.48
Revenue Forecast (FY)$2.44B
Cavco Industries Business Overview & Revenue Model
Company Description
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, Fleetwo...
How the Company Makes Money
Cavco makes money primarily by manufacturing and selling factory-built homes. The core revenue stream is home sales: Cavco builds manufactured and modular homes in its facilities and sells them at wholesale to independent dealers, builders/develop...
Cavco Industries Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented several strong fundamental positives: record annual shipments (20.8k), double-digit YoY revenue and EPS growth, improving consolidated gross margin, meaningful financial services momentum (including a forward-flow investor agreement), tangible synergies from the American HomeStar acquisition (> $10M annual run-rate), disciplined capital deployment (>$360M deployed, $160M buybacks), and a strategic new plant to expand Southwest capacity. Offsetting these positives were near-term operational headwinds: sequential revenue and operating income declines, factory-built margin compression due to higher input costs and mix shifts, weather-related production losses, tariff/commodity cost risk, and a higher effective tax rate going forward. Overall, the balance of material performance metrics, strategic actions, cash generation, and realized synergies outweigh the near-term challenges and risks discussed on the call.Positive Updates
Record Annual Shipments
Achieved an all-time high of 20.8 thousand homes shipped for fiscal year 2026, reflecting improved peak-to-peak delivery capacity driven by plant modernizations and the American HomeStar acquisition.
Negative Updates
Sequential Revenue and Operating Income Decline
Sequentially, Q4 net revenue decreased ~5% and operating income declined ~6% quarter-over-quarter, driven by fewer units sold and lower average selling price sequentially.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual Shipments
Achieved an all-time high of 20.8 thousand homes shipped for fiscal year 2026, reflecting improved peak-to-peak delivery capacity driven by plant modernizations and the American HomeStar acquisition.
Read all positive updates
Company Guidance
Management's forward look emphasized operational and capital deployment guidance: capacity utilization was ~70% in Q4 and the company finished the quarter with ~25% more floors in backlog and roughly 5–7 weeks of backlog (backlogs improved through April), giving Cavco the ability to push additional production (aiming to increase shipments from Q4 levels); the new Cavco El Mirage plant is expected to be operational mid‑calendar 2027; American HomeStar synergies are expected to exceed $10 million annually (mostly SG&A and purchasing) and the CountryPlace investor agreement includes a minimum commitment of about $25 million of originated loans per quarter over two years to ramp originations and loan sales; management cautioned that tariffs and rising lumber/OSB/steel costs will pressure factory COGS (with ~60‑day lag), ENERGY STAR tax credits end 6/30/2026, and capital priorities remain plant investment/acquisitions/lending with continued share repurchases (Q4 repurchases $30M; $160M repurchased for the year; Board added $150M authorization, ~ $218M remaining), while FY cash deployment was >$360M (including $173M acquisition and $35M plant spend) and year‑end cash balances were healthy (unrestricted cash cited at $237M; cash+restricted $257.6M).Cavco Industries Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.24B | 2.02B | 1.79B | 2.14B | 1.63B |
| Gross Profit | 526.89M | 465.59M | 426.90M | 554.93M | 408.75M |
| EBITDA | 251.61M | 230.85M | 219.35M | 324.58M | 223.71M |
| Net Income | 190.55M | 171.04M | 157.82M | 240.55M | 197.70M |
Balance Sheet | |||||
| Total Assets | 1.49B | 1.41B | 1.35B | 1.31B | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 273.26M | 376.07M | 370.96M | 286.40M | 264.24M |
| Total Debt | 30.75M | 45.14M | 35.15M | 36.56M | 24.78M |
| Total Liabilities | 387.96M | 342.06M | 320.75M | 330.47M | 323.69M |
| Stockholders Equity | 1.10B | 1.06B | 1.03B | 976.29M | 830.46M |
Cash Flow | |||||
| Free Cash Flow | 232.09M | 157.07M | 207.26M | 211.59M | 125.57M |
| Operating Cash Flow | 267.49M | 178.50M | 224.68M | 255.69M | 144.22M |
| Investing Cash Flow | -222.44M | -23.95M | -31.71M | -129.34M | -159.10M |
| Financing Cash Flow | -162.79M | -147.95M | -107.71M | -102.20M | -65.09M |
Cavco Industries Technical Analysis
Positive
539.06
Price Trends
498.51
Positive
541.14
Negative
548.85
Negative
Market Momentum
6.85
Negative
60.81
Neutral
83.14
Negative
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 539.06 is above the 20-day moving average (MA) of 493.08, above the 50-day MA of 498.51, and below the 200-day MA of 548.85, indicating a neutral trend. The MACD of 6.85 indicates Negative momentum. The RSI at 60.81 is Neutral, neither overbought nor oversold. The STOCH value of 83.14 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.12B | 21.82 | 17.55% | ― | 11.36% | 15.51% | |
76 Outperform | $2.90B | 9.77 | 16.38% | ― | -6.58% | -18.09% | |
70 Outperform | $3.37B | 9.52 | 11.42% | ― | -1.83% | -30.18% | |
70 Outperform | $4.04B | 19.42 | 13.56% | ― | 7.26% | 6.61% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $3.06B | 8.68 | 9.01% | 1.76% | -13.61% | -37.18% |
* Consumer Cyclical Sector Average
CVCO
Cavco Industries
536.52
113.01
26.68%
KBH
KB Home
48.86
-1.24
-2.48%
MHO
M/I Homes
131.62
26.57
25.29%
SKY
Champion Homes
73.63
10.13
15.95%
GRBK
Green Brick Partners
67.26
9.44
16.33%
Cavco Industries Corporate Events
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.