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Reasonable growth and debt and a high ROIC for CAVCO INDUSTRIES INC (NASDAQ:CVCO).

By Mill Chart

Last update: Dec 10, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CAVCO INDUSTRIES INC (NASDAQ:CVCO) is suited for quality investing. Investors should of course do their own research, but we spotted CAVCO INDUSTRIES INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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What matters for quality investors.

  • The 5-year revenue growth of CAVCO INDUSTRIES INC has been remarkable, with 13.27% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • The ROIC excluding cash and goodwill of CAVCO INDUSTRIES INC stands at 23.73%, 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 exhibits impressive Profit Quality (5-year) with a 103.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • CAVCO INDUSTRIES INC has experienced impressive EBIT growth over the past 5 years, with 15.73% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • The EBIT 5-year growth of CAVCO INDUSTRIES INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NASDAQ:CVCO

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of 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. CVCO is valied quite expensively at the moment, while it does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of CVCO

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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