Start here if you're new
what it is
It builds factory-made homes, then sells financing and insurance to the same buyers.
how it gets paid
Last year Cavco Industries made $2.0B in revenue. Manufactured homes was the main engine at $1.1B, or 55% of sales.
why it's growing
Revenue grew 12.3% last year. Revenue was up 192% from a year ago.
what just happened
Cavco's latest quarter posted $1.7B of revenue, with EPS at $18.55 and gross margin at 23.6%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
55/100 earnings predictability — expect surprises
25.3x trailing p/e — priced about right
16.1% return on capital — nothing to write home about
$20.71 fy2024 eps est
xvary composite: 60/100 — average
What they do
It builds factory-made homes, then sells financing and insurance to the same buyers.
You are not buying one factory. You are buying 99 company-owned stores, 62 in Texas, and a finance arm that lends to the same customers. Backlog was $160M versus $224M a year earlier, so the order book is thinner by 28.6%.
How they make money
$2.0B
annual revenue · their business grew +12.3% last year
Manufactured homes
$1.1B
Modular homes
$0.5B
Park model RVs and cabins
$0.2B
Commercial structures
$0.1B
Financial services and insurance
$0.1B
The products that matter
factory-built single-family housing
manufactured homes
$1.8B · ~90% of revenue
it's the core business at roughly $1.8B of the company's $2B revenue base, and average pricing declined in 2026. when this segment gets cheaper, the whole story gets harder.
core engine
insurance and lending
financial services
$200M · +75% growth
this $200M segment is only 10% of revenue, but gross profit margin reached 65.2% versus 55.5% a year ago. smaller business. better economics.
margin driver
acquired housing capacity
american homestar
closed in q3 2026
management closed the american homestar acquisition in q3 2026. the number to watch now is not deal count — it's whether added volume helps margins that just fell to 21.7%.
execution test
Key numbers
$2.0B
annual revenue
That is the size of the pie. One bad quarter matters less than the full year.
10.4%
op margin
For every $100 sold, $10.40 stayed after operating costs. That is solid for homebuilding.
16.1%
return on capital
For every $100 tied up in the business, Cavco earned $16.10. That is why the model keeps paying back.
25.3x
trailing p/e
P/E means price divided by earnings. You are paying 25.3 times profit, which is rich for a cyclical builder.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $41M (1% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CVCO right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Cavco's latest quarter posted $1.7B of revenue, with EPS at $18.55 and gross margin at 23.6%.
Revenue was up 192% from a year ago. EPS was up 232%. Gross margin held at 23.6%.
$1.7B
revenue
$18.55
eps
23.6%
gross margin
top line
Revenue was $1.7B. That is 192% above last year.
source: company earnings report, 2026
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What could go wrong
the #1 risk is tariff-driven cost pressure in manufactured housing.
high
tariff cost pressure
tariffs added about $2M to costs last quarter. that's not theoretical. it already showed up in the numbers.
direct hit to a housing gross margin that already fell from 23.6% to 21.7%.
med
weak home pricing
average pricing for single-section homes declined in 2026. when the core product gets cheaper, scale does less for you.
pressures revenue per unit in the segment that generates roughly $1.8B of the company's $2B revenue.
med
american homestar execution risk
the acquisition closed in q3 2026, right as the core business was seeing margin pressure. more volume is only helpful if it comes with decent economics.
if integration adds complexity without restoring profitability, pretax profit can stay under pressure after a 16.9% decline.
tariffs, softer pricing, and acquisition execution all hit the same place: the housing business that still accounts for roughly 90% of revenue. that's why a 190-basis-point gross margin decline matters so much.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
housing gross margin
21.7% is the key number now. if that keeps sliding from the 23.6% level seen a year ago, the stock will have a harder time holding a premium multiple.
risk
tariff pass-through
management flagged about $2M of tariff costs last quarter. watch whether cavco can push those costs into pricing or whether they stay trapped in margin.
calendar
q4 2026 earnings and full-year readout
the next report should show whether q3 was a one-quarter squeeze or the start of a more durable reset in profitability.
trend
financial services mix
financial services is only about 10% of revenue, but it grew +75% and posted a 65.2% margin. if that mix keeps rising, it can cushion a weaker housing cycle.
Analyst rankings
earnings predictability
55 / 100
in human-speak: analysts see a business where quarter-to-quarter results can move around more than you'd like.
balance sheet strength
B++
above average financial health with just $41M of long-term debt. solid support, not a thesis by itself.
source: institutional data
Institutional activity
institutional ownership data for CVCO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$581
current price
n/a
target midpoint · n/a from current
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