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Fundamental analysis: Cavco Industries, Inc. (CVCO)

Awarener score: 7.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Lacking) and growth (Very good), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

  • Business has been growing at a very good pace. It's been great when measured against peer companies.
  • Cavco Industries, Inc. business shows some variation, there's some risk. It looks worse than most rivals.

Margins score: 6.5

  • CVCO profit margins -on goods and services sold- are usually meagre. They stand somewhat better than rival companies.
  • Business profit on sales tends to be very good. It's below average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still slightly worse than similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain almost average when measured against rivals.
  • Total net profit tends to be good when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 8.1

  • Cavco Industries, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been in good shape compared to competitors.
  • In recent years, earnings -on operations- have been growing at a very good step, which has been well ranked against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares more than average in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be in good shape compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very good speed. It was well ranked against rivals.
  • In the previous years, growth trend on total net profit has been very good, and encouraging in relation to peer companies.
  • Earnings per share have grown at a very good rhythm in past years. It's been a slight improvement compared to industry peers.

Miscellaneous score: 7.0

  • CVCO had hardly to pay income taxes in relation to profits made in the past years. It's been top-notch against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.5

  • Cavco Industries, Inc. usually gets huge returns on the resources it controls. It proves encouraging in relation to peer firms.
  • The company normally gets huge proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
  • In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 6.3

  • CVCO usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands encouraging in relation to rival firms.
  • The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
  • The company uses a low portion of genuine fund generation to reward investors, which can most likely be sustained. It still looks below average when measured against competitors.

Balance Sheet score: 6.6

  • Cavco Industries, Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
  • The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be in a weak position compared to similar firms.
  • Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly better than rival firms.
  • Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks below average when measured against rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
  • For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are on a month credit. It still ranks last-in-rank when measured against peers.
  • Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as in good shape compared to competitors.
  • On average, it takes higher than three months from the purchase to charging customers. It happens to be well ranked against peers.
  • On average pays suppliers during the first couple of weeks from the purchase. It ranks substantially worse when measured against industry peers.
  • The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's in good shape compared to similar companies.
  • Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands slightly better than rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks similar to comparable enterprises.
  • Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks a disappointment compared to similar firms.
  • Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 7.6

  • Cavco Industries, Inc. looks very cheap in relation to profits and financial position. It happens to be substantially worse when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands somewhat better than similar companies.
  • The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still almost average when measured against industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in a weak position compared to peer ventures.
  • The company has substantial more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a weak position compared to rival firms.
  • The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be substantially worse when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 7.2


CVCO logos

Company at a glance: Cavco Industries, Inc. (CVCO)

Sector, industry: Consumer Cyclical, Residential Construction

Market Cap: 2.45 billions

Revenues TTM: 2.10 billions

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.

Awarener score: 7.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Lacking) and growth (Very good), and the company's inclination to return cash to the stockholders (Good).