Cavco Industries (CVCO) AI Stock Analysis

• Market Cap: $4.11B
• Dividend Yield: N/A
• Average Volume (3M): 127.84K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.98
• Revenue Growth: 16.66%
• EPS Growth: 34.61%
• Country: US
• Employees: 6,500
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Residential Construction
• EPS (TTM): 6.42
• Shares Outstanding: 7,917,647
• 10 Day Avg. Volume: 151,905
• 30 Day Avg. Volume: 127,838
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 6.69
• Enterprise Value/Ebitda: 13.81
• 1Y Price Target: $544.33
• Price Target Upside: 4.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: $558.00 ▲(7.18% Upside)

Cavco Industries' strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. The company's robust balance sheet and strategic initiatives, such as acquisitions and share buybacks, further enhance its outlook. While technical indicators suggest caution due to potential overbought conditions, the overall positive momentum and reasonable valuation support a favorable stock assessment.

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, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, and MidCountry brands. It also builds park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, 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 April 3, 2022, it operated 45 company-owned retail stores in Oregon, Arizona, Nevada, New Mexico, Texas, Indiana, Oklahoma, Florida, and New York. The company also distributes its homes through a network of independent distribution points in 48 states and Canada; and through planned community operators and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

How the Company Makes Money

Cavco Industries generates revenue primarily through the sale of manufactured and modular homes. The company has a diversified revenue model that includes several key streams: the direct sales of homes to consumers and retail dealers, the provision of insurance services via its subsidiary, and financing solutions for home buyers. Additionally, Cavco earns income from the sale of components used in its homes and from the development of land for home sites. Significant partnerships with dealers and retailers enhance its distribution network, while the company's ability to tap into various housing markets allows it to capitalize on demand fluctuations and regional housing trends.

Cavco Industries Financial Statement Overview

Summary

Cavco Industries displays strong financial performance with substantial revenue growth and profitability. The balance sheet is notably strong with minimal leverage and high equity ratios. While cash flow remains positive, there is room for improvement in free cash flow management moving forward.

Income Statement

Cavco Industries shows a strong revenue growth trajectory, with a notable increase from $1.79 billion to $2.02 billion year-over-year (2024 to 2025). Gross profit margin is healthy at approximately 23.1%, and net profit margin is strong at 8.5%. Although EBIT margin is consistent, EBITDA margin is slightly lower compared to previous years, indicating potential areas of cost efficiency improvement.

Balance Sheet

The company maintains a robust balance sheet with a very low debt-to-equity ratio of 0.03, suggesting minimal leverage and strong equity position. Return on equity (ROE) is solid at 16.1%, reflecting efficient use of shareholder capital. The equity ratio stands at 75.7%, indicating a stable financial structure with significant assets funded through equity rather than debt.

Cash Flow

Cavco Industries demonstrates a healthy cash flow position with a strong free cash flow to net income ratio of 0.92, underscoring effective cash management. However, the free cash flow has decreased compared to the previous year, highlighting a need for attention to cash flow optimization. The operating cash flow to net income ratio is high at 1.04, signifying robust cash generation relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.02B	2.02B	1.79B	2.14B	1.63B	1.11B
Gross Profit	465.59M	465.59M	426.90M	554.93M	408.75M	238.98M
EBITDA	225.36M	230.85M	219.35M	315.00M	212.81M	94.41M
Net Income	171.04M	171.04M	157.82M	240.55M	197.70M	76.65M
Balance Sheet
Total Assets	1.41B	1.41B	1.35B	1.31B	1.15B	951.83M
Cash, Cash Equivalents and Short-Term Investments	376.07M	376.07M	370.96M	286.40M	264.24M	341.77M
Total Debt	31.54M	31.54M	35.15M	21.68M	24.78M	25.55M
Total Liabilities	342.06M	342.06M	320.75M	330.47M	323.69M	268.19M
Stockholders Equity	1.06B	1.06B	1.03B	976.29M	830.46M	683.64M
Cash Flow
Free Cash Flow	157.07M	157.07M	207.26M	211.59M	125.57M	88.49M
Operating Cash Flow	178.50M	178.50M	224.68M	255.69M	144.22M	114.03M
Investing Cash Flow	-23.95M	-23.95M	-31.71M	-129.34M	-159.10M	-23.35M
Financing Cash Flow	-147.95M	-147.95M	-107.71M	-102.20M	-65.09M	-6.98M

Cavco Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 520.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 520.62 is above the 20-day moving average (MA) of 468.08, above the 50-day MA of 443.97, and above the 200-day MA of 477.56, indicating a bullish trend. The MACD of 21.04 indicates Negative momentum. The RSI at 74.95 is Negative, neither overbought nor oversold. The STOCH value of 90.22 is Negative, 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	80 Outperform	$4.11B	22.52	17.90%	―	16.66%	34.61%
MHO	80 Outperform	$3.84B	7.98	17.56%	―	7.39%	-1.37%
TPH	79 Outperform	$3.07B	8.94	11.38%	―	-3.59%	-10.82%
MTH	76 Outperform	$5.57B	9.13	12.58%	2.09%	-3.72%	-23.00%
SKY	74 Outperform	$4.21B	19.83	14.39%	―	16.87%	54.47%
KBH	73 Outperform	$4.30B	8.44	14.07%	1.58%	3.65%	-0.61%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%

Cavco Industries Corporate Events

Cavco Industries Announces Acquisition of American Homestar

On July 14, 2025, Cavco Industries announced its plan to acquire American Homestar Corporation, a Houston-based manufacturer and retailer of factory-built homes, for $190 million in cash. The acquisition, expected to close in the third quarter of fiscal year 2026, aims to strengthen Cavco’s presence in the South-Central U.S. and is anticipated to be accretive to earnings and cash flow, with potential operational and cost synergies.

Cavco Industries Approves $150 Million Stock Buyback

On May 20, 2025, Cavco Industries‘ Board of Directors approved a $150 million stock repurchase program. This initiative allows for stock purchases in the open market or through privately negotiated transactions, with the company financing the program from existing cash resources. The plan offers flexibility as it does not obligate Cavco to buy a specific amount of stock and can be adjusted based on market conditions and strategic needs.