CAVCO INDUSTRIES INC (CVCO) Stock Fundamental Analysis
NASDAQ:CVCO - Nasdaq - US1495681074 - Common Stock - Currency: USD
Overall CVCO gets a fundamental rating of 7 out of 10. We evaluated CVCO against 63 industry peers in the Household Durables industry. CVCO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CVCO has a correct valuation and a medium growth rate. These ratings would make CVCO suitable for quality investing!
1. Profitability
1.1 Basic Checks
CVCO had positive earnings in the past year.
CVCO had a positive operating cash flow in the past year.
In the past 5 years CVCO has always been profitable.
Each year in the past 5 years CVCO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.16%, CVCO belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
CVCO's Return On Equity of 16.07% is fine compared to the rest of the industry. CVCO outperforms 73.02% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.55%, CVCO belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CVCO is significantly above the industry average of 10.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | 16.07% | ||
| ROIC | 14.55% |
ROA(3y)14.07%
ROA(5y)13.47%
ROE(3y)18.66%
ROE(5y)18.2%
ROIC(3y)17.08%
ROIC(5y)16.01%
1.3 Margins
The Profit Margin of CVCO (8.49%) is better than 71.43% of its industry peers.
In the last couple of years the Profit Margin of CVCO has grown nicely.
Looking at the Operating Margin, with a value of 9.94%, CVCO is in line with its industry, outperforming 58.73% of the companies in the same industry.
CVCO's Operating Margin has improved in the last couple of years.
CVCO's Gross Margin of 23.10% is on the low side compared to the rest of the industry. CVCO is outperformed by 61.90% of its industry peers.
In the last couple of years the Gross Margin of CVCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | 8.49% | ||
| GM | 23.1% |
OM growth 3Y-7.23%
OM growth 5Y3.74%
PM growth 3Y-11.27%
PM growth 5Y3.71%
GM growth 3Y-2.75%
GM growth 5Y1.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CVCO is creating value.
Compared to 1 year ago, CVCO has less shares outstanding
The number of shares outstanding for CVCO has been reduced compared to 5 years ago.
Compared to 1 year ago, CVCO has an improved debt to assets ratio.
2.2 Solvency
CVCO has an Altman-Z score of 9.95. This indicates that CVCO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.95, CVCO belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
The Debt to FCF ratio of CVCO is 0.05, which is an excellent value as it means it would take CVCO, only 0.05 years of fcf income to pay off all of its debts.
CVCO has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. CVCO outperforms 87.30% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that CVCO is not too dependend on debt financing.
The Debt to Equity ratio of CVCO (0.01) is better than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 9.95 |
ROIC/WACC1.64
WACC8.89%
2.3 Liquidity
CVCO has a Current Ratio of 3.00. This indicates that CVCO is financially healthy and has no problem in meeting its short term obligations.
CVCO has a Current ratio of 3.00. This is in the better half of the industry: CVCO outperforms 61.90% of its industry peers.
A Quick Ratio of 2.17 indicates that CVCO has no problem at all paying its short term obligations.
CVCO's Quick ratio of 2.17 is amongst the best of the industry. CVCO outperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.78% over the past year.
CVCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.77% yearly.
The Revenue has grown by 16.60% in the past year. This is quite good.
Measured over the past years, CVCO shows a quite strong growth in Revenue. The Revenue has been growing by 13.68% on average per year.
EPS 1Y (TTM)39.78%
EPS 3Y6.18%
EPS 5Y21.77%
EPS Q2Q%56.2%
Revenue 1Y (TTM)16.6%
Revenue growth 3Y7.39%
Revenue growth 5Y13.68%
Sales Q2Q%16.6%
3.2 Future
CVCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.86% yearly.
Based on estimates for the next years, CVCO will show a small growth in Revenue. The Revenue will grow by 6.38% on average per year.
EPS Next Y12.83%
EPS Next 2Y12.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.68%
Revenue Next 2Y6.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.93 indicates a rather expensive valuation of CVCO.
CVCO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CVCO to the average of the S&P500 Index (26.48), we can say CVCO is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.44 indicates a correct valuation of CVCO.
CVCO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.04. CVCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 16.44 |
4.2 Price Multiples
61.90% of the companies in the same industry are cheaper than CVCO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVCO indicates a somewhat cheap valuation: CVCO is cheaper than 60.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.13 | ||
| EV/EBITDA | 14.68 |
4.3 Compensation for Growth
CVCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CVCO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CVCO's earnings are expected to grow with 12.86% in the coming years.
PEG (NY)1.48
PEG (5Y)0.87
EPS Next 2Y12.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
454.21
+2.72 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.55%
Inst Owner Change-3.45%
Ins Owners1.06%
Ins Owner Change1.77%
Market Cap3.63B
Analysts80
Price Target559.3 (23.14%)
Short Float %3.66%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.61%
Min EPS beat(2)8.78%
Max EPS beat(2)38.43%
EPS beat(4)3
Avg EPS beat(4)10.39%
Min EPS beat(4)-14.33%
Max EPS beat(4)38.43%
EPS beat(8)3
Avg EPS beat(8)0.61%
EPS beat(12)7
Avg EPS beat(12)7.14%
EPS beat(16)11
Avg EPS beat(16)14.66%
Revenue beat(2)1
Avg Revenue beat(2)2.71%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)6.56%
Revenue beat(4)3
Avg Revenue beat(4)2.6%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)6.56%
Revenue beat(8)4
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)0.88%
Revenue beat(16)10
Avg Revenue beat(16)2.53%
PT rev (1m)0%
PT rev (3m)0.61%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-14.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 16.44 | ||
| P/S | 1.8 | ||
| P/FCF | 23.13 | ||
| P/OCF | 20.36 | ||
| P/B | 3.41 | ||
| P/tB | 3.92 | ||
| EV/EBITDA | 14.68 |
EPS(TTM)24
EY5.28%
EPS(NY)27.63
Fwd EY6.08%
FCF(TTM)19.63
FCFY4.32%
OCF(TTM)22.31
OCFY4.91%
SpS251.93
BVpS133.07
TBVpS115.74
PEG (NY)1.48
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | 16.07% | ||
| ROCE | 18.15% | ||
| ROIC | 14.55% | ||
| ROICexc | 22.07% | ||
| ROICexgc | 27.27% | ||
| OM | 9.94% | ||
| PM (TTM) | 8.49% | ||
| GM | 23.1% | ||
| FCFM | 7.79% |
ROA(3y)14.07%
ROA(5y)13.47%
ROE(3y)18.66%
ROE(5y)18.2%
ROIC(3y)17.08%
ROIC(5y)16.01%
ROICexc(3y)24.97%
ROICexc(5y)24.24%
ROICexgc(3y)31.2%
ROICexgc(5y)30.7%
ROCE(3y)21.31%
ROCE(5y)19.98%
ROICexcg growth 3Y-7.77%
ROICexcg growth 5Y2.48%
ROICexc growth 3Y-6.74%
ROICexc growth 5Y3.67%
OM growth 3Y-7.23%
OM growth 5Y3.74%
PM growth 3Y-11.27%
PM growth 5Y3.71%
GM growth 3Y-2.75%
GM growth 5Y1.25%
F-Score7
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 111.26% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 18206.9 | ||
| Cash Conversion | 81.31% | ||
| Profit Quality | 91.83% | ||
| Current Ratio | 3 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 9.95 |
F-Score7
WACC8.89%
ROIC/WACC1.64
Cap/Depr(3y)155.42%
Cap/Depr(5y)208.2%
Cap/Sales(3y)1.36%
Cap/Sales(5y)1.51%
Profit Quality(3y)103.7%
Profit Quality(5y)98.03%
High Growth Momentum
Growth
EPS 1Y (TTM)39.78%
EPS 3Y6.18%
EPS 5Y21.77%
EPS Q2Q%56.2%
EPS Next Y12.83%
EPS Next 2Y12.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.6%
Revenue growth 3Y7.39%
Revenue growth 5Y13.68%
Sales Q2Q%16.6%
Revenue Next Year6.68%
Revenue Next 2Y6.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.87%
EBIT growth 3Y-0.37%
EBIT growth 5Y17.93%
EBIT Next Year17.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.22%
FCF growth 3Y7.77%
FCF growth 5Y12.44%
OCF growth 1Y-20.56%
OCF growth 3Y7.37%
OCF growth 5Y11.91%