Cavco Industries (CVCO) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: N/A
• Average Volume (3M): 186.25K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.92
• Revenue Growth: 16.66%
• EPS Growth: 34.61%
• Country: US
• Employees: 6,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 6.42
• Shares Outstanding: 7,917,647
• 10 Day Avg. Volume: 175,737
• 30 Day Avg. Volume: 186,252
• 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: 0.79
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 6.33
• Enterprise Value/Ebitda: 12.31
• 1Y Price Target: $555.50
• Price Target Upside: 10.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $561.00 ▲(11.49% Upside)

Cavco Industries' strong financial performance and positive earnings call are the most significant factors driving its overall score. The company's robust revenue growth and operational efficiency are complemented by a solid balance sheet. However, technical indicators suggest short-term bearish momentum, and the valuation is moderate, which tempers the overall score.

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 demonstrates strong financial health with consistent revenue growth, efficient operational management, and a solid balance sheet with low leverage. The company's cash flow generation is robust, supporting its 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 2025	Dec 2024	Dec 2024	Dec 2023
Income Statement
Total Revenue	2.09B	2.02B	2.02B	1.79B	1.79B	2.14B
Gross Profit	491.69M	465.59M	465.59M	426.90M	426.90M	554.93M
EBITDA	252.76M	230.85M	230.85M	219.35M	219.35M	315.00M
Net Income	188.25M	171.04M	171.04M	157.82M	157.82M	240.55M
Balance Sheet
Total Assets	1.42B	1.41B	1.41B	1.35B	1.35B	1.31B
Cash, Cash Equivalents and Short-Term Investments	385.66M	376.07M	376.07M	370.96M	370.96M	286.40M
Total Debt	30.19M	31.54M	31.54M	35.15M	35.15M	21.68M
Total Liabilities	354.78M	342.06M	342.06M	320.75M	320.75M	330.47M
Stockholders Equity	1.06B	1.06B	1.06B	1.03B	1.03B	976.29M
Cash Flow
Free Cash Flow	161.04M	157.07M	157.07M	207.26M	207.26M	211.59M
Operating Cash Flow	186.63M	178.50M	178.50M	224.68M	224.68M	255.69M
Investing Cash Flow	-26.32M	-23.95M	-23.95M	-31.71M	-31.71M	-129.34M
Financing Cash Flow	-170.81M	-147.95M	-147.95M	-107.71M	-107.71M	-102.20M

Cavco Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 503.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVCO, the sentiment is Neutral. The current price of 503.19 is below the 20-day moving average (MA) of 557.80, below the 50-day MA of 515.35, and above the 200-day MA of 486.43, indicating a neutral trend. The MACD of 5.89 indicates Positive momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 17.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVCO.

Cavco Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHO	80 Outperform	$3.78B	7.85	17.56%	―	7.39%	-1.37%
GRBK	77 Outperform	$3.24B	9.50	22.12%	―	13.87%	6.54%
TPH	76 Outperform	$2.96B	8.63	11.38%	―	-3.59%	-10.82%
CVCO	75 Outperform	$3.95B	21.61	17.90%	―	16.66%	34.61%
SKY	74 Outperform	$3.93B	18.50	14.39%	―	16.87%	54.47%
KBH	70 Outperform	$4.47B	9.23	13.06%	1.63%	-0.95%	-9.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.