Reasonable Growth, Debt Levels, and a High ROIC Make CAVCO INDUSTRIES INC (NASDAQ:CVCO) Appealing to Quality Investors.

In this article we will dive into CAVCO INDUSTRIES INC (NASDAQ:CVCO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CAVCO INDUSTRIES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NASDAQ:CVCO may be interesting for quality investors.

• CAVCO INDUSTRIES INC has shown strong performance in revenue growth over the past 5 years, with a 13.27% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of CAVCO INDUSTRIES INC stands at 22.95%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• CAVCO INDUSTRIES INC maintains a healthy Debt/Free Cash Flow Ratio of 0.05, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• CAVCO INDUSTRIES INC demonstrates consistent Profit Quality over the past 5 years, with a strong 103.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• CAVCO INDUSTRIES INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 15.73%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• CAVCO INDUSTRIES INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NASDAQ:CVCO

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to CVCO. CVCO was compared to 67 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. While showing a medium growth rate, CVCO is valued expensive at the moment.

Our latest full fundamental report of CVCO contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.