Why CAVCO INDUSTRIES INC (NASDAQ:CVCO) qualifies as a quality stock.

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.

Looking into the quality metrics of CAVCO INDUSTRIES INC

• 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 notable ROIC excluding cash and goodwill at 26.08%, CAVCO INDUSTRIES INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• CAVCO INDUSTRIES INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.06, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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 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.
• CAVCO INDUSTRIES INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

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 66 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make CVCO suitable for quality investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.