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 64 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. These ratings would make CVCO suitable for quality investing!
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.
CVCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.17%, CVCO belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
CVCO has a Return On Equity of 15.95%. This is in the better half of the industry: CVCO outperforms 68.75% of its industry peers.
CVCO has a better Return On Invested Capital (13.57%) than 76.56% of its industry peers.
CVCO had an Average Return On Invested Capital over the past 3 years of 18.23%. This is significantly above the industry average of 12.30%.
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
CVCO's Profit Margin of 8.75% is fine compared to the rest of the industry. CVCO outperforms 68.75% of its industry peers.
CVCO's Profit Margin has improved in the last couple of years.
The Operating Margin of CVCO (9.82%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CVCO has grown nicely.
The Gross Margin of CVCO (23.27%) is worse than 62.50% 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.
CVCO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.52 indicates that CVCO is not in any danger for bankruptcy at the moment.
CVCO has a better Altman-Z score (10.52) than 96.88% of its industry peers.
The Debt to FCF ratio of CVCO is 0.06, which is an excellent value as it means it would take CVCO, only 0.06 years of fcf income to pay off all of its debts.
CVCO has a better Debt to FCF ratio (0.06) than 84.38% 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 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 10.52 |
ROIC/WACC1.51
WACC8.97%
2.3 Liquidity
A Current Ratio of 3.08 indicates that CVCO has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.08, CVCO is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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.
The Quick ratio of CVCO (2.23) is better than 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.09% over the past year.
The Earnings Per Share has been growing by 19.92% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.11% in the past year.
The Revenue has been growing by 13.27% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 7.90% on average over the next years.
EPS Next Y23.04%
EPS Next 2Y19.57%
EPS Next 3Y15.54%
EPS Next 5YN/A
Revenue Next Year10.33%
Revenue Next 2Y8.64%
Revenue Next 3Y7.9%
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
With a Price/Earnings ratio of 23.51, CVCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CVCO indicates a slightly more expensive valuation: CVCO is more expensive than 62.50% of the companies listed in the same industry.
CVCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.21 indicates a rather expensive valuation of CVCO.
CVCO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CVCO is more expensive than 65.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVCO to the average of the S&P500 Index (21.08), we can say CVCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVCO is valued a bit more expensive than 65.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVCO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.54 | ||
| EV/EBITDA | 16.52 |
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)1.02
PEG (5Y)1.18
EPS Next 2Y19.57%
EPS Next 3Y15.54%
5. Dividend
5.1 Amount
No dividends for CVCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
477.75
+8.3 (+1.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.49%
Inst Owner Change0%
Ins Owners0.94%
Ins Owner Change0.09%
Market Cap3.83B
Analysts80
Price Target559.3 (17.07%)
Short Float %2.03%
Short Ratio2.59
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)11.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.81%
EPS NY rev (1m)0%
EPS NY rev (3m)10.79%
Revenue NQ rev (1m)-1.63%
Revenue NQ rev (3m)3.76%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)3.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 18.21 | ||
| P/S | 1.99 | ||
| P/FCF | 27.54 | ||
| P/OCF | 24.15 | ||
| P/B | 3.62 | ||
| P/tB | 4.21 | ||
| EV/EBITDA | 16.52 |
EPS(TTM)20.32
EY4.25%
EPS(NY)26.23
Fwd EY5.49%
FCF(TTM)17.35
FCFY3.63%
OCF(TTM)19.78
OCFY4.14%
SpS240.6
BVpS131.99
TBVpS113.38
PEG (NY)1.02
PEG (5Y)1.18
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 | 10.52 |
F-Score5
WACC8.97%
ROIC/WACC1.51
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 Year10.33%
Revenue Next 2Y8.64%
Revenue Next 3Y7.9%
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%