Cavco Industries (CVCO) AI Stock Analysis

• Market Cap: $3.53B
• Dividend Yield: N/A
• Average Volume (3M): 154.56K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.97
• Revenue Growth: 16.66%
• EPS Growth: 34.61%
• Country: US
• Employees: 6,500
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Residential Construction
• EPS (TTM): 6.42
• Shares Outstanding: 7,917,647
• 10 Day Avg. Volume: 108,312
• 30 Day Avg. Volume: 154,562
• 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: 0.88
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 6.69
• Enterprise Value/Ebitda: 13.81
• 1Y Price Target: $537.50
• Price Target Upside: 20.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: $504.00 ▲(12.93% Upside)

Cavco Industries shows strong financial health with significant growth in revenue and net income, bolstered by a solid balance sheet. Positive corporate events, such as strategic acquisitions and share buybacks, support a favorable outlook. However, technical indicators suggest potential short-term weaknesses, and challenges in gross margin and SG&A expenses impact the overall score.

Cavco Industries Business Overview & Revenue Model

Company Description

Cavco Industries, Inc. is a leading producer of manufactured homes and modular homes in the United States. The company operates within the factory-built housing industry, providing a wide range of products such as manufactured homes, modular homes, park model RVs, and vacation cabins. Cavco's operations are divided into two segments: factory-built housing and financial services. The company also offers a variety of insurance and home loan products, primarily to its customers.

How the Company Makes Money

Cavco Industries generates revenue primarily through the sale of manufactured and modular homes. The company operates multiple manufacturing facilities across the United States, producing a variety of home models and designs tailored to different customer needs and preferences. In addition to home sales, Cavco earns revenue from its financial services segment, which includes offering insurance products and home loans. This segment provides an additional revenue stream by facilitating transactions for customers purchasing Cavco's homes. Key factors contributing to Cavco's earnings include its extensive distribution network, which consists of independent retailers and company-owned sales centers, as well as strategic partnerships with financial institutions to support its home loan offerings.

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: 446.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 446.28 is above the 20-day moving average (MA) of 427.08, above the 50-day MA of 428.23, and below the 200-day MA of 473.48, indicating a neutral trend. The MACD of -2.85 indicates Negative momentum. The RSI at 59.20 is Neutral, neither overbought nor oversold. The STOCH value of 84.49 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	79 Outperform	$3.53B	19.35	17.90%	―	16.66%	34.61%
TPH	79 Outperform	$2.92B	8.50	11.38%	―	-3.59%	-10.82%
MHO	78 Outperform	$3.42B	7.12	17.56%	―	7.39%	-1.37%
SKY	74 Outperform	$3.71B	18.98	14.42%	―	16.87%	54.47%
MTH	74 Outperform	$5.22B	8.28	12.58%	2.26%	-3.72%	-23.00%
Sector *	67 Neutral	¥265.25B	13.27	6.55%	2.53%	5.21%	-14.18%
KBH	67 Neutral	$4.03B	7.85	14.07%	1.75%	3.65%	-0.61%

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.

The most recent analyst rating on (CVCO) stock is a Hold with a $480.00 price target. To see the full list of analyst forecasts on Cavco Industries stock, see the CVCO Stock Forecast page.

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.

The most recent analyst rating on (CVCO) stock is a Hold with a $480.00 price target. To see the full list of analyst forecasts on Cavco Industries stock, see the CVCO Stock Forecast page.