Cavco Industries Inc.

CVCO

Mobile Homes

Mkt Cap

$2.97B

PE

18.82

Debt

Cash

$368.8M

EV

FCF

$207.3M

Market Cap

$2.97B

P/E Ratio

18.82

Debt

Cash

$368.8M

EV

FCF

$207.3M

Charts data: {"Earnings":[{"time":"2015-03-27","value":23817000},{"time":"2016-04-01","value":28541000},{"time":"2017-03-31","value":37955000},{"time":"2018-03-30","value":61502000},{"time":"2019-03-29","value":68622000},{"time":"2020-03-27","value":75066000},{"time":"2021-04-02","value":76646000},{"time":"2022-04-01","value":197699000},{"time":"2023-03-31","value":240554000},{"time":"2024-03-29","value":157817000}],"Sales":[{"time":"2015-03-27","value":566659000},{"time":"2016-04-01","value":712352000},{"time":"2017-03-31","value":773797000},{"time":"2018-03-30","value":871235000},{"time":"2019-03-29","value":962746000},{"time":"2020-03-27","value":1061774000},{"time":"2021-04-02","value":1108051000},{"time":"2022-04-01","value":1627158000},{"time":"2023-03-31","value":2142713000},{"time":"2024-03-29","value":1794792000}],"Net Margins":[{"time":"2015-03-27","value":0.042030568648869955},{"time":"2016-04-01","value":0.04006586631328332},{"time":"2017-03-31","value":0.04905033232230158},{"time":"2018-03-30","value":0.07059174619936068},{"time":"2019-03-29","value":0.0712773670313873},{"time":"2020-03-27","value":0.07069866092030884},{"time":"2021-04-02","value":0.06917190634727102},{"time":"2022-04-01","value":0.12149957164577749},{"time":"2023-03-31","value":0.11226608509865764},{"time":"2024-03-29","value":0.08793052342555571}],"Assets":[{"time":"2015-03-27","value":502582000},{"time":"2016-04-01","value":553835000},{"time":"2017-03-31","value":607316000},{"time":"2018-03-30","value":674780000},{"time":"2019-03-29","value":725216000},{"time":"2020-03-27","value":810431000},{"time":"2021-04-02","value":951833000},{"time":"2022-04-01","value":1154972000},{"time":"2023-03-31","value":1307975000},{"time":"2024-03-29","value":1354160000}],"Stockholders Equity":[{"time":"2015-03-27","value":320154000},{"time":"2016-04-01","value":353226000},{"time":"2017-03-31","value":394408000},{"time":"2018-03-30","value":457106000},{"time":"2019-03-29","value":529588000},{"time":"2020-03-27","value":607586000},{"time":"2021-04-02","value":683640000},{"time":"2022-04-01","value":830455000},{"time":"2023-03-31","value":976286000},{"time":"2024-03-29","value":1033411000}],"ROE":[{"time":"2015-03-27","value":0.07439232369422216},{"time":"2016-04-01","value":0.08080096029171126},{"time":"2017-03-31","value":0.09623283503377214},{"time":"2018-03-30","value":0.13454647280937027},{"time":"2019-03-29","value":0.12957619885646957},{"time":"2020-03-27","value":0.12354794218431629},{"time":"2021-04-02","value":0.1121145632204084},{"time":"2022-04-01","value":0.2380610629112956},{"time":"2023-03-31","value":0.2463970598779456},{"time":"2024-03-29","value":0.15271465080205263}],"ROA":[{"time":"2015-03-27","value":0.08339733615608995},{"time":"2016-04-01","value":0.08737439851219225},{"time":"2017-03-31","value":0.09834089666664471},{"time":"2018-03-30","value":0.12288449568748333},{"time":"2019-03-29","value":0.12426642545117593},{"time":"2020-03-27","value":0.11657253979672545},{"time":"2021-04-02","value":0.10259152603450396},{"time":"2022-04-01","value":0.18354470930897027},{"time":"2023-03-31","value":0.23453277012175308},{"time":"2024-03-29","value":0.14708749335381344}]}

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It also produces 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. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

Sector

LEGH

10-Q
9/30/23
10-Q
7/1/23
10-K
4/1/23
10-Q
12/31/22
10-Q
10/1/22
10-Q
7/2/22
10-K
4/2/22
10-Q
1/1/22
10-Q
10/2/21
10-Q
7/3/21
10-K
4/3/21
10-Q
12/26/20
10-Q
9/26/20
10-Q
6/27/20
10-K
3/28/20
10-Q
12/28/19
10-Q
9/28/19
10-Q
6/29/19
10-K
3/30/19
10-Q
12/29/18
10-Q
9/29/18
10-Q
6/30/18
10-K
3/31/18
10-Q
12/30/17

DCF

Discounted Cash Flow Valuation of Cavco Industries Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$207.3M	$267.3M	$337.6M	$417.5M	$505.1M	$597.6M	$691.2M	$781M	$861.6M	$927.6M	$974M	$9.74B
DCF		$232.4M	$255.3M	$274.5M	$288.8M	$297.1M	$298.8M	$293.6M	$281.7M	$263.7M	$240.8M	$2.408B
Value	$5.134B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 30%

Earnings Stability 89%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	04-2016	03-2017	03-2018	03-2019	03-2020	04-2021	04-2022	03-2023	03-2024	TTM
Net Margin	4%	4.9%	7.1%	7.1%	7.1%	6.9%	12%	11%	8.8%	8.8%
ROA	8.7%	9.8%	12%	12%	12%	10%	18%	23%	15%	15%
ROE	8.1%	9.6%	13%	13%	12%	11%	24%	25%	15%	15%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.88%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.74%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +15.14%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.57%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +16.71%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.74%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	04-2016	03-2017	03-2018	03-2019	03-2020	04-2021	04-2022	03-2023	03-2024	TTM
Debt FCF	1.37	1.31	0.67	0.58	0.15	0.12	0.09	-	-	-
Debt Equity	0.16	0.13	0.07	0.03	0.02	0.02	0.01	-	-	-
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	92%	92%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.15.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.92.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	03-2017	03-2019	04-2021	03-2023	Trend
Revenue	13%	13%	17%	-16%	-0.6%
Net Income	23%	18%	27%	-34%	-1.1%
Stockholders Equity	15%	14%	15%	5.9%	0.13%
FCF	27%	52%	33%	-2%	-0.0073%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +13.27%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.6%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +18.12%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.14%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +14.31%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.13%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +52.41%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.01%.