Is NASDAQ:CVCO suited for quality investing?

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.

A Deep Dive into CAVCO INDUSTRIES INC's Quality Metrics.

• CAVCO INDUSTRIES INC has achieved substantial revenue growth over the past 5 years, with a 13.27% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 23.73%, CAVCO INDUSTRIES INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a Debt/Free Cash Flow Ratio of 0.05, CAVCO INDUSTRIES INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• 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 superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

CVCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making CVCO a very profitable company, without any liquidiy or solvency issues. CVCO is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of CVCO for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.