Bedrijfsoverzicht
Cavco Industries, Inc. is a manufacturer and retailer of factory-built homes that operates primarily within the United States market. The company functions within the Consumer Cyclical sector and specifically targets the Residential Construction industry, which positions it as a provider of housing solutions that are sensitive to broader economic cycles and consumer spending power. Cavco manages a significant operational scale with a total market capitalization of $4.04 billion and an annual revenue of $2.20 billion across its two main segments: Factory-Built Housing and Financial Services. This substantial market cap and revenue volume indicate that the company holds a leading position in its niche, leveraging its production capabilities for park model RVs, vacation cabins, and factory-built commercial structures, including apartment buildings, to serve a large customer base. With an employee count of 7000, the firm demonstrates the human capital required to sustain such manufacturing and retail operations while maintaining a diversified product portfolio that spans residential and commercial real estate applications.
Financiële gezondheid
Cavco Industries generated a total revenue of $2.20 billion over the trailing twelve months, resulting in a net income of $184.42 million and an EBITDA of $251.74 million. The significant gap between the $2.20 billion in revenue and the $184.42 million in net income reveals a cost structure where operating expenses and taxes consume approximately 91.6% of top-line earnings before interest, which is typical for capital-intensive manufacturing and retail businesses with high overheads. The company maintains a free cash flow of $111.74 million, which provides a robust level of financial flexibility to fund operations, manage working capital cycles, and potentially return capital to shareholders or invest in manufacturing upgrades without relying solely on external financing. Analyzing the profit margins shows a gross margin of 22.3%, an operating margin of 9.9%, and a profit margin of 8.4%; the gross margin indicates the efficiency of production and pricing relative to the cost of goods sold, while the operating and profit margins reflect the effectiveness of controlling administrative and selling expenses to convert revenue into actual profit. On the balance sheet, the company holds $241.89 million in cash against $41.57 million in debt, supported by a debt-to-equity ratio of 3.82, suggesting a leveraged capital structure where the firm utilizes significant debt financing relative to its equity base, though the high cash reserve offers a substantial buffer against interest obligations. Liquidity is further supported by a current ratio of 2.48, indicating that the company possesses more than double the current assets necessary to cover its short-term liabilities, which points to a strong ability to meet immediate financial obligations. Return on Equity stands at 17.2% and Return on Assets is 10.1%, metrics that reveal management's effectiveness in generating profits from shareholders' investments and utilizing the total asset base to drive earnings, respectively.
Waarderingsbeoordeling
Valuation metrics for Cavco Industries show a trailing P/E ratio of 22.47 and a forward P/E of 20.69. The difference between these two figures implies that the market expects earnings growth in the future, as investors are willing to accept a lower multiple for anticipated future profitability compared to the current earnings base. The price-to-book ratio is 3.70, which indicates that the stock trades at a premium of 270% over its book value, suggesting that the market assigns a higher valuation to the company's intangible assets, brand strength, or growth prospects than the accounting value of its net assets. Alternative valuation measures include a price-to-sales ratio of 1.83 and an EV/EBITDA of 15.15; these metrics suggest that the company is valued at a premium relative to its sales volume and earnings before interest, taxes, depreciation, and amortization, reflecting confidence in its revenue generation capabilities and cash flow stability. Regarding price volatility, Cavco trades within a 52-week range with a high of $713.01 and a low of $393.53. While the exact current price is not explicitly stated in the provided data, the valuation metrics imply a position that requires analysis relative to this $319.48 spread between the high and low. The stock has a beta of 1.33, meaning its price volatility is expected to be 33% higher than the broader market, indicating that the stock tends to amplify market movements and is more sensitive to systemic economic shifts than the average equity.
Growth & Income
The company reports a revenue growth rate of 11.3% year-over-year, while earnings growth stands at -19.1% year-over-year. This divergence indicates that earnings are currently growing significantly slower than revenue, which implies that rising costs, potential margin compression, or one-time charges are impacting the bottom line despite strong top-line expansion. As a non-dividend payer, Cavco Industries does not distribute a dividend yield or maintain a payout ratio, as indicated by the 0.0% figure in the available data. Consequently, the company reinvests its entire earnings back into the business to fund manufacturing capacity, expand its housing portfolio, or optimize its financial services segment rather than distributing cash to shareholders. This strategy prioritizes internal capital allocation for growth initiatives over immediate income generation for investors. The overall growth and income profile is characterized by robust top-line expansion in the residential construction sector, coupled with a temporary earnings contraction and a disciplined capital allocation approach that forgoes dividends in favor of reinvestment.