Cavco Industries (CVCO) AI Stock Analysis

• Market Cap: $4.75B
• Dividend Yield: N/A
• Average Volume (3M): 131.64K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.93
• Revenue Growth: 15.81%
• EPS Growth: 37.89%
• Country: US
• Employees: 6,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 6.55
• Shares Outstanding: 7,805,037
• 10 Day Avg. Volume: 104,803
• 30 Day Avg. Volume: 131,640
• 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: 0.88
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 8.23
• Enterprise Value/Ebitda: 15.80
• 1Y Price Target: $575.00
• Price Target Upside: -5.52% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 24.53
• Revenue Forecast (FY): $2.19B

• Rating: 80 Outperform
• Price Target: $687.00 ▲(12.88% Upside)

Cavco Industries' strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's robust balance sheet, effective cash flow management, and strategic acquisitions bolster its position. Technical indicators suggest bullish momentum, though valuation metrics indicate moderate pricing. Regional shipment challenges and tariff impacts are potential risks.

Positive Factors

Financial Services Improvement

The turnaround in the financial services segment from a loss to a profit enhances Cavco's diversified revenue streams, contributing to overall financial stability and resilience against market fluctuations.

American Homestar Acquisition

The acquisition expands Cavco's operational scale and retail presence, potentially boosting revenue and market share through increased production capacity and distribution channels.

Balance Sheet Strength

A strong balance sheet with ample cash reserves provides Cavco with financial flexibility to pursue growth opportunities and withstand economic downturns, ensuring long-term stability.

Negative Factors

Regional Shipment Disparities

Regional shipment disparities may indicate uneven demand and potential challenges in optimizing distribution, which could impact revenue growth in affected areas.

Impact of Tariffs

Increased tariffs on Canadian lumber raise production costs, potentially squeezing margins and affecting competitiveness in the market, posing a risk to profitability.

Slight Decline in Wholesale Orders

A decline in wholesale orders suggests potential market uncertainties and demand fluctuations, which could impact future revenue and operational planning.

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 financial performance with consistent revenue growth and healthy profitability margins. The balance sheet is solid with low leverage, and cash flow generation is robust, supporting 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 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: Positive
• Last Price: 608.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 608.6 is above the 20-day moving average (MA) of 557.68, above the 50-day MA of 554.54, and above the 200-day MA of 500.82, indicating a bullish trend. The MACD of 9.33 indicates Negative momentum. The RSI at 65.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.92 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	$4.75B	25.00	18.50%	―	15.81%	37.89%
SKY	76 Outperform	$4.81B	22.41	14.37%	―	12.14%	48.68%
TPH	75 Outperform	$2.94B	10.10	9.47%	―	-16.60%	-29.85%
KBH	74 Outperform	$4.20B	9.09	13.04%	1.54%	-0.95%	-9.22%
GRBK	70 Outperform	$2.97B	8.98	20.37%	―	6.62%	-1.90%
MHO	68 Neutral	$3.65B	8.19	15.76%	―	4.77%	-9.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Cavco Industries Corporate Events

Cavco Industries Appoints Lisa Daniels to Board

On October 28, 2025, Cavco Industries announced the appointment of Lisa L. Daniels to its Board of Directors, effective October 27, 2025. Ms. Daniels, a former Vice Chair of Growth and Strategy at KPMG, brings over 35 years of professional services experience to Cavco, enhancing the board’s expertise in financial, regulatory, and technology-related risks. Her appointment is expected to bolster Cavco’s strategic direction and governance, aligning with the company’s focus on addressing affordable housing challenges.

The most recent analyst rating on (CVCO) stock is a Buy with a $679.00 price target. To see the full list of analyst forecasts on Cavco Industries stock, see the CVCO Stock Forecast page.

Cavco Industries Completes Acquisition of American Homestar

On September 29, 2025, Cavco Industries completed the acquisition of American Homestar Corporation, a Texas-based factory-built housing company operating under the name Oak Creek Homes. The acquisition, valued at $190 million, was funded with cash on hand and is expected to enhance Cavco’s strategic positioning in the market. The merger, which received all necessary regulatory approvals, is anticipated to create new opportunities for growth and strengthen Cavco’s operations and market presence.

The most recent analyst rating on (CVCO) stock is a Buy with a $620.00 price target. To see the full list of analyst forecasts on Cavco Industries stock, see the CVCO Stock Forecast page.

Cavco Industries’ Earnings Call Highlights Growth and Challenges

Cavco Industries Reports Positive Earnings with Record Home Shipments