Cavco Industries, Inc. (CVCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Cavco Industries, Inc.

Toll Brothers, Inc.

Frontdoor, Inc.

Skyline Champion Corp.

M/I Homes, Inc.

KB Home

Taylor Morrison Home Corp.

Meritage Homes Corp.

Tri Pointe Homes, Inc.

LGI Homes, Inc.

Why is Cavco Industries, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.06%

Healthy long term growth as Net Sales has grown by an annual rate of 15.80% and Operating profit at 22.76%
The company is Net-Debt Free

Flat results in Mar 26

CASH AND EQV(HY) Lowest at USD 532.42 MM
DEBT-EQUITY RATIO (HY) Highest at -20.89 %

With ROE of 16.82%, it has a fair valuation with a 3.36 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 46.17%, its profits have risen by 7.5% ; the PEG ratio of the company is 1.7

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 46.17% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cavco Industries, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cavco Industries, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Cavco Industries, Inc.

46.17%

1.45

47.24%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.80%

EBIT Growth (5y)

22.76%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.85

Tax Ratio

18.97%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

32.12%

ROE (avg)

18.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.36

EV to EBIT

15.79

EV to EBITDA

14.35

EV to Capital Employed

4.10

EV to Sales

1.55

PEG Ratio

1.71

Dividend Yield

ROCE (Latest)

25.94%

ROE (Latest)

16.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 267.48 MM

RAW MATERIAL COST(Y)

Fallen by -1.19% (YoY

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 532.42 MM

DEBT-EQUITY RATIO (HY)

Highest at -20.89 %

Here's what is working for Cavco Industries, Inc.

Operating Cash Flow

Highest at USD 267.48 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -1.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 6.38 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Cavco Industries, Inc.

Cash and Eqv

Lowest at USD 532.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -20.89 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio