CAVCO INDUSTRIES INC (CVCO) Stock Fundamental Analysis
NASDAQ:CVCO - Nasdaq - US1495681074 - Common Stock - Currency: USD
Taking everything into account, CVCO scores 6 out of 10 in our fundamental rating. CVCO was compared to 67 industry peers in the Household Durables industry. CVCO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CVCO is quite expensive at the moment. It does show a decent growth rate. With these ratings, CVCO could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year CVCO was profitable.
CVCO had a positive operating cash flow in the past year.
CVCO had positive earnings in each of the past 5 years.
Each year in the past 5 years CVCO had a positive operating cash flow.
1.2 Ratios
CVCO has a Return On Assets of 12.17%. This is amongst the best in the industry. CVCO outperforms 87.69% of its industry peers.
The Return On Equity of CVCO (15.95%) is better than 70.77% of its industry peers.
With a decent Return On Invested Capital value of 13.57%, CVCO is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVCO is significantly above the industry average of 12.03%.
The last Return On Invested Capital (13.57%) for CVCO is well below the 3 year average (18.23%), which needs to be investigated, but indicates that CVCO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.17% | ||
| ROE | 15.95% | ||
| ROIC | 13.57% |
ROA(3y)15.72%
ROA(5y)12.9%
ROE(3y)21.24%
ROE(5y)17.46%
ROIC(3y)18.23%
ROIC(5y)15.07%
1.3 Margins
With a decent Profit Margin value of 8.75%, CVCO is doing good in the industry, outperforming 70.77% of the companies in the same industry.
CVCO's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 9.82%, CVCO perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
CVCO's Operating Margin has improved in the last couple of years.
CVCO has a Gross Margin of 23.27%. This is in the lower half of the industry: CVCO underperforms 63.08% of its industry peers.
In the last couple of years the Gross Margin of CVCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.82% | ||
| PM (TTM) | 8.75% | ||
| GM | 23.27% |
OM growth 3Y7.56%
OM growth 5Y2.18%
PM growth 3Y8.35%
PM growth 5Y4.29%
GM growth 3Y3.32%
GM growth 5Y2.17%
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.
The debt/assets ratio for CVCO has been reduced compared to a year ago.
2.2 Solvency
CVCO has an Altman-Z score of 11.28. This indicates that CVCO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.28, CVCO belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
CVCO has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
The Debt to FCF ratio of CVCO (0.06) is better than 87.69% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that CVCO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.01, CVCO is doing good in the industry, outperforming 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 11.28 |
ROIC/WACC1.48
WACC9.18%
2.3 Liquidity
A Current Ratio of 3.08 indicates that CVCO has no problem at all paying its short term obligations.
CVCO has a Current ratio (3.08) which is in line with its industry peers.
CVCO has a Quick Ratio of 2.23. This indicates that CVCO is financially healthy and has no problem in meeting its short term obligations.
CVCO has a Quick ratio of 2.23. This is amongst the best in the industry. CVCO outperforms 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
CVCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.09%.
The Earnings Per Share has been growing by 19.92% on average over the past years. This is quite good.
CVCO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.11%.
CVCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.27% yearly.
EPS 1Y (TTM)3.09%
EPS 3Y30.54%
EPS 5Y19.92%
EPS Q2Q%61.59%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y17.44%
Revenue growth 5Y13.27%
Sales Q2Q%16.85%
3.2 Future
Based on estimates for the next years, CVCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.54% on average per year.
Based on estimates for the next years, CVCO will show a quite strong growth in Revenue. The Revenue will grow by 8.63% on average per year.
EPS Next Y23.04%
EPS Next 2Y19.57%
EPS Next 3Y15.54%
EPS Next 5YN/A
Revenue Next Year10.06%
Revenue Next 2Y9.43%
Revenue Next 3Y8.63%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.63, the valuation of CVCO can be described as expensive.
Based on the Price/Earnings ratio, CVCO is valued a bit more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. CVCO is around the same levels.
Based on the Price/Forward Earnings ratio of 19.85, the valuation of CVCO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVCO indicates a slightly more expensive valuation: CVCO is more expensive than 64.62% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CVCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 19.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVCO is valued a bit more expensive than 63.08% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.02 | ||
| EV/EBITDA | 18.54 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CVCO may justify a higher PE ratio.
CVCO's earnings are expected to grow with 15.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)1.29
EPS Next 2Y19.57%
EPS Next 3Y15.54%
5. Dividend
5.1 Amount
CVCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
520.73
-9.45 (-1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners96.8%
Inst Owner Change-0.73%
Ins Owners0.9%
Ins Owner Change0.09%
Market Cap4.17B
Analysts80
Price Target501.5 (-3.69%)
Short Float %2.06%
Short Ratio2.63
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)23.55%
Min EPS beat(2)8.67%
Max EPS beat(2)38.43%
EPS beat(4)2
Avg EPS beat(4)5.11%
Min EPS beat(4)-14.33%
Max EPS beat(4)38.43%
EPS beat(8)3
Avg EPS beat(8)-0.04%
EPS beat(12)7
Avg EPS beat(12)7.92%
EPS beat(16)11
Avg EPS beat(16)16.52%
Revenue beat(2)2
Avg Revenue beat(2)5.13%
Min Revenue beat(2)3.69%
Max Revenue beat(2)6.56%
Revenue beat(4)3
Avg Revenue beat(4)1.81%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)6.56%
Revenue beat(8)4
Avg Revenue beat(8)-1.4%
Revenue beat(12)7
Avg Revenue beat(12)2.12%
Revenue beat(16)11
Avg Revenue beat(16)2.74%
PT rev (1m)0%
PT rev (3m)11.15%
EPS NQ rev (1m)14.81%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)10.79%
EPS NY rev (3m)19.24%
Revenue NQ rev (1m)5.47%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)2.81%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 19.85 | ||
| P/S | 2.16 | ||
| P/FCF | 30.02 | ||
| P/OCF | 26.33 | ||
| P/B | 3.95 | ||
| P/tB | 4.59 | ||
| EV/EBITDA | 18.54 |
EPS(TTM)20.32
EY3.9%
EPS(NY)26.23
Fwd EY5.04%
FCF(TTM)17.35
FCFY3.33%
OCF(TTM)19.78
OCFY3.8%
SpS240.6
BVpS131.99
TBVpS113.38
PEG (NY)1.11
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.17% | ||
| ROE | 15.95% | ||
| ROCE | 17.2% | ||
| ROIC | 13.57% | ||
| ROICexc | 20.69% | ||
| ROICexgc | 26.08% | ||
| OM | 9.82% | ||
| PM (TTM) | 8.75% | ||
| GM | 23.27% | ||
| FCFM | 7.21% |
ROA(3y)15.72%
ROA(5y)12.9%
ROE(3y)21.24%
ROE(5y)17.46%
ROIC(3y)18.23%
ROIC(5y)15.07%
ROICexc(3y)26.27%
ROICexc(5y)23.15%
ROICexgc(3y)33.17%
ROICexgc(5y)29.6%
ROCE(3y)23.11%
ROCE(5y)19.1%
ROICexcg growth 3Y0.68%
ROICexcg growth 5Y-0.08%
ROICexc growth 3Y1.92%
ROICexc growth 5Y0.54%
OM growth 3Y7.56%
OM growth 5Y2.18%
PM growth 3Y8.35%
PM growth 5Y4.29%
GM growth 3Y3.32%
GM growth 5Y2.17%
F-Score5
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 102.62% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 864.11 | ||
| Cash Conversion | 76.09% | ||
| Profit Quality | 82.4% | ||
| Current Ratio | 3.08 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 11.28 |
F-Score5
WACC9.18%
ROIC/WACC1.48
Cap/Depr(3y)175%
Cap/Depr(5y)235.26%
Cap/Sales(3y)1.39%
Cap/Sales(5y)1.57%
Profit Quality(3y)94.25%
Profit Quality(5y)102.93%
High Growth Momentum
Growth
EPS 1Y (TTM)3.09%
EPS 3Y30.54%
EPS 5Y19.92%
EPS Q2Q%61.59%
EPS Next Y23.04%
EPS Next 2Y19.57%
EPS Next 3Y15.54%
EPS Next 5YN/A
Revenue 1Y (TTM)4.11%
Revenue growth 3Y17.44%
Revenue growth 5Y13.27%
Sales Q2Q%16.85%
Revenue Next Year10.06%
Revenue Next 2Y9.43%
Revenue Next 3Y8.63%
Revenue Next 5YN/A
EBIT growth 1Y-3.32%
EBIT growth 3Y26.32%
EBIT growth 5Y15.73%
EBIT Next Year21.97%
EBIT Next 3Y15.44%
EBIT Next 5YN/A
FCF growth 1Y-29.68%
FCF growth 3Y32.8%
FCF growth 5Y52.41%
OCF growth 1Y-36.19%
OCF growth 3Y25.38%
OCF growth 5Y46.94%