Cavco Industries (CVCO) AI Stock Analysis

• Market Cap: $4.81B
• Dividend Yield: N/A
• Average Volume (3M): 164.09K
• Price to Earnings (P/E): 25.4
• 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): 5.58
• Shares Outstanding: 7,805,037
• 10 Day Avg. Volume: 160,991
• 30 Day Avg. Volume: 164,095
• 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: 0.74
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 6.96
• Enterprise Value/Ebitda: 13.37
• 1Y Price Target: $550.00
• Price Target Upside: -10.93% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 25.02
• Revenue Forecast (FY): $2.29B

• Rating: 81 Outperform
• Price Target: $730.00 ▲(18.22% 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

Balance Sheet Strength

A very low debt-to-equity ratio (0.028) and strong TTM ROE (18.43%) indicate minimal leverage and efficient capital use. This financial flexibility supports capex, M&A, and buybacks and provides a durable buffer through housing-cycle volatility over the coming months.

Cash Generation

Robust free cash flow metrics—11.76% FCF growth and a high FCF-to-net-income ratio (0.86)—demonstrate strong cash conversion. This supports sustained investments in plants, dealer networks, and strategic M&A while enabling shareholder returns without stressing the balance sheet.

Scale via Acquisition & Utilization

The American Homestar acquisition plus higher factory utilization (~75%) expands manufacturing scale and retail distribution. That structural lift to capacity and footprint should improve per-unit economics, dealer reach, and revenue resilience over the next several quarters.

Negative Factors

Regional Demand Disparity

Material Southeast shipment weakness (≈4% YTD; ≈10% in recent months) reflects uneven geographic demand that can persist due to local market cycles. Geographic concentration risk increases revenue volatility and may force reallocation of production or retail resources.

Input-Cost Exposure (Tariffs)

Significantly higher Canadian lumber tariffs and additional duties create structural input-cost pressure. Unless offset by pricing, sourcing changes, or efficiency gains, these trade-driven cost increases can compress margins and challenge profitability over the medium term.

Wholesale Order Weakness

A slight decline in wholesale orders signals softer demand through dealer channels. Continued weakness could reduce backlog and factory utilization, pressuring volumes and fixed-cost absorption and limiting margin recovery despite retail strength.

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, 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 profitability with consistent margins and a robust balance sheet. The company has a low debt-to-equity ratio and strong returns on equity, indicating effective financial management. Cash flow is also strong, with efficient cash generation relative to profits.

Income Statement

Cavco Industries demonstrates strong profitability with a consistent gross profit margin around 23-25% and a net profit margin improving to 9.18% in the TTM. Revenue growth is positive, albeit modest at 2.34% in the TTM, indicating stable demand. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.028, indicating minimal leverage risk. Return on equity is strong at 18.43% in the TTM, showcasing effective use of equity. The equity ratio is solid, reflecting a stable financial structure.

Cash Flow

Cavco's cash flow is strong, with a free cash flow growth rate of 11.76% in the TTM, indicating effective cash management. The operating cash flow to net income ratio is 0.66, suggesting good cash conversion. The free cash flow to net income ratio is high at 0.86, highlighting efficient cash generation relative to profits.

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: Neutral
• Last Price: 617.50
• 50DMA: Positive
• 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 617.5 is below the 20-day moving average (MA) of 649.76, above the 50-day MA of 611.49, and above the 200-day MA of 523.19, indicating a neutral trend. The MACD of 9.30 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 3.95 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
CVCO	81 Outperform	$4.81B	25.36	18.50%	―	15.81%	37.89%
SKY	78 Outperform	$4.70B	21.98	14.37%	―	12.14%	48.68%
GRBK	73 Outperform	$3.02B	9.21	20.37%	―	6.62%	-1.90%
TPH	73 Outperform	$2.86B	9.96	9.47%	―	-16.60%	-29.85%
MHO	71 Outperform	$3.46B	9.27	13.20%	―	4.77%	-9.30%
KBH	66 Neutral	$3.66B	9.42	10.70%	1.76%	-10.01%	-27.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%