| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | 23.0x | 17.8x | Around median | |
Growth | 43 | 9.7% | 7.1% | Around median | |
Quality | 71 | 14.9% | 4.5% | Top tier | |
Safety | 93 | — | 2.6x | Top tier | |
Capital Return | 54 | — | 2.12% | Around median | |
Momentum | 43 | 13.1% | 2.9% | Around median | |
Sentiment | 23 | 2 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Cavco Industries produces factory-built homes and sells them through company-owned stores, as well as independent retailers, residential communities, builders, and developers. The factory-built housing segment is the primary revenue driver, while the financial services segment adds revenue from loan origination and sales and insurance activities. In Q1 fiscal 2027, factory-built housing revenue was $586 million, or approximately 96.1% of total revenue, compared with $24 million for financial services, or approximately 3.9%.
The company reported record revenue of $610 million in Q1 fiscal 2027, up 9.5% from $556.9 million in the comparable quarter, as shipments rose to a quarterly record of 5,657 homes. Gross profit was $134.6 million, with a consolidated gross margin of 22.1% versus 23.3% a year earlier, while net income declined to $42.3 million from $51.6 million and diluted earnings per share fell to $5.43 from $6.42. On a fiscal 2027 trailing twelve-month basis, revenue was $2.3 billion, gross profit was $532 million, and net income was $181.2 million.
The results mix reflected a clear divergence between the two segments; factory-built housing gross margin declined to 20.8% from 22.6% due to higher cost per unit, while financial services margin increased to 52.4% from 40.9%, supported by higher loan sales, increased insurance premiums, underwriting changes, and gains in the insurance operation's equity portfolio. Selling, general, and administrative expenses also rose to $81.8 million, or 13.4% of revenue, from $69.1 million, or 12.4%, due to the addition of American Homestar and higher employee costs and sales and marketing spending.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with a uniform target of $700; both the highest and lowest targets are $700, meaning there is no meaningful range of disagreement that can be used to assess the dispersion of views. This target is only approximately 1.8% below the 52-week range high of $713.01, while the range low is $443.34, and no price-to-earnings ratio is available in the provided data. This high target should be weighed against the approximately 18% decline in Q1 fiscal 2027 net income and margin contraction, as approaching upper-end valuations requires continued backlog strength and the conversion of higher volume into an earnings recovery.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue increased 9.5% to $610 million from $556.9 million in the comparable quarter, marking the first time quarterly revenue exceeded $600 million. The company recorded a quarterly record of 5,657 units, and shipments increased 13% compared with the previous quarter. Factory-built housing revenue was $586 million, driven by the addition of American Homestar and higher average revenue from legacy homes due to an increased share of sales through company-owned stores and a higher mix of multi-section homes, partially offset by price reductions.
Yes, the backlog at the end of Q1 fiscal 2027 increased by more than 50% from the end of the previous quarter and was approximately 50% above its level a year earlier. Backlog duration reached between 7 and 9 weeks despite increased production and a record 5,657 units shipped. Every region also recorded double-digit sequential growth, and orders increased by more than 10% across retail, residential communities, builders, and developers.
Consolidated gross margin in Q1 fiscal 2027 declined to 22.1% from 23.3%, and factory-built housing margin fell to 20.8% from 22.6%. Management estimated the impact of tariffs and inflation on cost of sales at approximately $5 million compared with the previous quarter, alongside more intense pricing competition at the company's owned retail stores in Texas. Selling, general, and administrative expenses also increased to $81.8 million, and the effective tax rate rose to 24.2% from 20.9%, causing diluted earnings per share to decline to $5.43 from $6.42.
The segment generated revenue of $24 million in Q1 fiscal 2027, up 13.3% from $21.2 million a year earlier. Its gross margin increased to 52.4% from 40.9% due to higher loan sales, increased insurance premiums, underwriting changes, and gains in the insurance equity portfolio. The company also stated that insurance claims performance exceeded its profitability expectations and that A.M. Best revised the outlook for its financial strength and credit ratings to positive.
The law took effect before the earnings call held on July 31, 2026, and includes provisions intended to expand the use of factory-built housing and support buyers' financing needs. Cavco believes the removable-chassis option could help it offer homes with an appearance closer to traditional construction and enter urban and suburban locations that previously faced zoning barriers. However, management said that aligning state definitions and obtaining municipal responses would take time, and it did not provide a numerical forecast for additional volume or a specific date for the impact to begin.
Cash and restricted cash totaled $266.2 million at the end of Q1 fiscal 2027, including $243 million of unrestricted cash. Operations generated $74.5 million in cash, while the company used $27.5 million for factory and equipment improvements and $30 million for share repurchases. Approximately $188 million remained under the repurchase authorization, and the company had repurchased more than 19% of its outstanding shares for over $600 million during slightly more than five years.
