We assign a fundamental rating of 7 out of 10 to CVCO. CVCO was compared to 60 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 valued quite expensively, but it does show have an excellent growth rating. This makes CVCO very considerable for growth and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CVCO had positive earnings in the past year.
CVCO had a positive operating cash flow in the past year.
Each year in the past 5 years CVCO has been profitable.
In the past 5 years CVCO always reported a positive cash flow from operatings.

1.2 Ratios

CVCO has a better Return On Assets (13.58%) than 93.33% of its industry peers.
With a decent Return On Equity value of 18.12%, CVCO is doing good in the industry, outperforming 78.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.66%, CVCO belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
CVCO had an Average Return On Invested Capital over the past 3 years of 17.08%. This is significantly above the industry average of 9.70%.

		Industry Rank	Sector Rank
ROA	13.58%
ROE	18.12%
ROIC	16.66%

ROA(3y)14.07%

ROA(5y)13.47%

ROE(3y)18.66%

ROE(5y)18.2%

ROIC(3y)17.08%

ROIC(5y)16.01%

1.3 Margins

With a decent Profit Margin value of 9.18%, CVCO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
CVCO's Profit Margin has improved in the last couple of years.
CVCO has a better Operating Margin (10.97%) than 71.67% of its industry peers.
CVCO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.79%, CVCO perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
CVCO's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	10.97%
PM (TTM)	9.18%
GM	23.79%

OM growth 3Y-7.23%

OM growth 5Y3.74%

PM growth 3Y-11.27%

PM growth 5Y3.71%

GM growth 3Y-2.75%

GM growth 5Y1.25%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CVCO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CVCO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVCO has less shares outstanding
Compared to 1 year ago, CVCO has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 11.96 indicates that CVCO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.96, CVCO belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
The Debt to FCF ratio of CVCO is 0.04, which is an excellent value as it means it would take CVCO, only 0.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.04, CVCO belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that CVCO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, CVCO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.01
Debt/FCF	0.04
Altman-Z	11.96

ROIC/WACC1.8

WACC9.26%

2.3 Liquidity

A Current Ratio of 2.94 indicates that CVCO has no problem at all paying its short term obligations.
CVCO's Current ratio of 2.94 is in line compared to the rest of the industry. CVCO outperforms 55.00% of its industry peers.
A Quick Ratio of 2.13 indicates that CVCO has no problem at all paying its short term obligations.
CVCO has a Quick ratio of 2.13. This is amongst the best in the industry. CVCO outperforms 86.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.94
Quick Ratio	2.13

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CVCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.85%, which is quite impressive.
CVCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.77% yearly.
CVCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.76%.
Measured over the past years, CVCO shows a quite strong growth in Revenue. The Revenue has been growing by 13.68% on average per year.

EPS 1Y (TTM)42.85%

EPS 3Y6.18%

EPS 5Y21.77%

EPS Q2Q%24.05%

Revenue 1Y (TTM)15.76%

Revenue growth 3Y7.39%

Revenue growth 5Y13.68%

Sales Q2Q%9.67%

3.2 Future

CVCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.61% yearly.
CVCO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.53% yearly.

EPS Next Y17.64%

EPS Next 2Y15.61%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year13.9%

Revenue Next 2Y11.53%

Revenue Next 3YN/A

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 stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 24.38, CVCO is valued on the expensive side.
65.00% of the companies in the same industry are cheaper than CVCO, based on the Price/Earnings ratio.
CVCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
A Price/Forward Earnings ratio of 21.25 indicates a rather expensive valuation of CVCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVCO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, CVCO is valued at the same level.

		Industry Rank	Sector Rank
PE	24.38
Fwd PE	21.25

4.2 Price Multiples

CVCO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CVCO is more expensive than 66.67% of the companies in the same industry.
CVCO's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	26.74
EV/EBITDA	17.78

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.
A more expensive valuation may be justified as CVCO's earnings are expected to grow with 15.61% in the coming years.