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Cavco Industries (CVCO)

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. Cavco Industries is one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments and marketed under a variety of brand names including Cavco, Fleetwood, Palm Harbor, Fairmont, Friendship, Chariot Eagle and Destiny. The company is also a leading producer of park model RVs, vacation cabins and systems-built commercial structures, as well as modular homes. Cavco's finance subsidiary, Country Place Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Its insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

Company profile

Ticker
CVCO
Exchange
Website
CEO
William C. Boor
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
CAVCO INDUSTRIES INC
SEC CIK
Subsidiaries
Cavco Exchange, LLC • Chariot Eagle, LLC • Commodore Homes, LLC • CountryPlace Acceptance Corp. • CountryPlace Acceptance GP, LLC • CountryPlace Acceptance LP, LLC • CountryPlace Mortgage, Ltd. • CountryPlace Mortgage Holdings, LLC • CRG Holdings, LLC • Destiny Homes, LLC ...
IRS number
860214910

CVCO stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$353.50
Low target
$322.00
High target
$385.00
Wedbush
Upgraded
Outperform
$385.00
5 Aug 22
Craig-Hallum
Maintains
Buy
$322.00
31 May 22

Calendar

5 Aug 22
20 Aug 22
1 Apr 23
Quarter (USD) Jul 22 Apr 22 Jan 22 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Apr 22 Apr 21 Mar 20 Mar 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 252.96M 252.96M 252.96M 252.96M 252.96M 252.96M
Cash burn (monthly) 2.12M 7.82M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 3.41M 12.57M n/a n/a n/a n/a
Cash remaining 249.55M 240.39M n/a n/a n/a n/a
Runway (months of cash) 117.5 30.7 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
9 Aug 22 Greenblatt David A. Common Stock Sell Dispose S No No 277.64 600 166.58K 14,600
9 Aug 22 Greenblatt David A. Common Stock Sell Dispose S No No 276.32 1,500 414.48K 15,200
9 Aug 22 Greenblatt David A. Common Stock Sell Dispose S No No 275.18 1,100 302.7K 16,700
9 Aug 22 Greenblatt David A. Common Stock Sell Dispose S No No 273 564 153.97K 17,800
9 Aug 22 Greenblatt David A. Common Stock Sell Dispose S No No 271.91 236 64.17K 18,364
9 Aug 22 Greenblatt David A. Common Stock Option exercise Acquire M No No 77 4,000 308K 18,600
9 Aug 22 Greenblatt David A. Non-Employee Director Stock Option Common Stock Option exercise Dispose M No No 77 4,000 308K 0
4 Aug 22 Ryan Gavin Common Stock Payment of exercise Dispose F No No 255.72 26 6.65K 529
4 Aug 22 Zeller Lyle D Common Stock Payment of exercise Dispose F No No 255.72 26 6.65K 529
2 Aug 22 Greenblatt David A. Common Stock Grant Acquire A No No 0 450 0 14,600
92.6% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 216 223 -3.1%
Opened positions 29 32 -9.4%
Closed positions 36 29 +24.1%
Increased positions 68 86 -20.9%
Reduced positions 80 70 +14.3%
13F shares Current Prev Q Change
Total value 1.61B 2.02B -19.9%
Total shares 8.23M 8.35M -1.4%
Total puts 25.2K 1.9K +1226.3%
Total calls 0 0
Total put/call ratio Infinity Infinity NaN%
Largest owners Shares Value Change
BLK Blackrock 1.36M $266.3M -2.8%
TROW T. Rowe Price 878.47K $172.17M -1.3%
Vanguard 829.44K $162.56M +5.1%
Dimensional Fund Advisors 377.03K $73.89M -0.0%
STT State Street 319.38K $62.6M -1.1%
Wellington Management 310.76K $60.91M -7.6%
Broad Bay Capital Management 268K $52.53M 0.0%
Boston Trust Walden 243.71K $47.76M +1.1%
GBL Gamco Investors 224.9K $44.08M -0.3%
GW&K Investment Management 211.28K $41.41M -10.6%
Largest transactions Shares Bought/sold Change
SG Capital Management 20.63K -50.19K -70.9%
Vanguard 829.44K +39.98K +5.1%
BLK Blackrock 1.36M -39.02K -2.8%
Handelsbanken Fonder AB 150.59K -31.6K -17.3%
Osterweis Capital Management 27.66K +27.66K NEW
Pacer Advisors 26.42K +26.42K NEW
Wellington Management 310.76K -25.68K -7.6%
LGEN Legal & General 0 -25.07K EXIT
GW&K Investment Management 211.28K -24.99K -10.6%
Parametric Portfolio Associates 0 -23.95K EXIT

Financial report summary

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Risks
  • The impact of local or national emergencies, including the COVID-19 pandemic, can adversely affect our financial results, condition and prospects, including such impacts from state and federal regulatory action that restricts our ability to operate our business in the ordinary course and impacts on (i) customer demand and the availability of financing for our products, (ii) our supply chain and the availability of raw materials for the manufacture of our products, (iii) the availability of labor and the health and safety of our workforce and (iv) our liquidity and access to the capital markets
  • The Company's results of operations can be adversely affected by labor shortages and the pricing and availability of transportation or raw materials
  • Excessive health and safety incidents relating to our operations could be costly to the Company
  • Some of the Company's manufacturing production employees are represented by unions, and failure to negotiate reasonable collective bargaining agreements may result in strikes, work stoppages or substantially higher ongoing labor costs
  • Increases in the rate of cancellations of home sales orders could have an adverse effect on the Company's business
  • The Company may not be able to successfully integrate past or future acquisitions to attain the anticipated benefits and such acquisitions may adversely impact the Company's liquidity
  • The Company's involvement in vertically integrated lines of business, including manufactured housing consumer finance, commercial finance and insurance, exposes the Company to certain risks
  • Information technology failures or cyber incidents could harm the Company's business
  • Failure to maintain the security of personally identifiable information could adversely affect the Company.
  • The Company's participation in certain financing programs for the purchase of its products by industry distributors and consumers may expose the Company to additional risk of credit loss, which could adversely impact its liquidity and results of operations
  • The Company's results of operations could be adversely affected by significant warranty and construction defect claims on factory-built housing
  • Products supplied to the Company or work done by subcontractors can expose the Company to risks that could adversely affect its business
  • The Company has contingent repurchase obligations related to wholesale financing provided to industry distributors
  • A write-off of all or part of the Company's goodwill could adversely affect its results of operations and financial condition
  • If the Company is unable to establish or maintain relationships with its independent distributors who sell the Company's homes, revenue could decline
  • The Company's business and operations are concentrated in certain geographic regions, which could be impacted by market declines
  • The Company's income tax provision and other tax liabilities may be insufficient if taxing authorities initiate and are successful in asserting tax positions that are contrary to the Company's position.
  • A prolonged delay by Congress and the President to approve budgets or continuing appropriation resolutions to facilitate the operations of the federal government could delay the completion of home sales and/or cause cancellations, and thereby negatively impact the Company's deliveries and revenues
  • Tightened credit standards, curtailed lending activity by home-only lenders and increased government lending regulations continue to constrain the consumer financing market which could continue to restrict sales of the Company's homes
  • An increase in interest rates could reduce potential buyers' ability or desire to obtain financing with which to buy homes and adversely affect the Company's business or financial results.
  • Availability of wholesale financing for industry distributors continues to be limited to a few floor plan lenders and lending limits may be reduced from time to time which can negatively affect distributor demand
  • The Company's operating results could be affected by market forces and declining housing demand
  • The cyclical and seasonal nature of the manufactured housing industry causes the Company's revenues and operating results to fluctuate, and we expect this cyclicality and seasonality to continue in the future
  • The manufactured housing industry is highly competitive, and increased competition may result in lower revenue
  • Deterioration in economic conditions and turmoil in financial markets could reduce the Company's earnings and financial condition
  • If favorable local zoning ordinances are not adopted or if local zoning ordinances become further restricted, the Company's revenue could decline and its business could be adversely affected
  • The Company is subject to extensive regulation affecting the production and sale of manufactured housing, which could adversely affect its profitability
  • The Company may face risks related to the potential outcomes of the SEC litigation, including potential penalties, expense, the use of significant management time and attention or potential reputational damage that the Company may suffer as a result of the litigation
  • Losses not covered by our Director and Officer ("D&O") insurance may be large, which could adversely impact the Company's financial performance
  • The loss of any of the Company's executive officers, senior leadership or business operations managers or a significant number of operating employees could reduce its ability to execute its business strategy and could have a material adverse effect on its business and results of operations
  • The Company's liquidity and ability to raise capital may be limited
  • Certain provisions of the Company's organizational documents could delay or make more difficult a change in control of the Company
Management Discussion
  • In the factory-built housing segment, the increase in Net revenue was primarily due to an increase in the average sales price and the number of units sold. The higher home prices were driven by product price increases. Home sales volume increased from the addition of Commodore, which provided $101 million in Net revenue for the three months ended July 2, 2022, and higher factory capacity utilization.
  • Net factory-built housing revenue per home sold is a volatile metric dependent upon several factors. A primary factor is the price disparity between sales of homes to independent distributors, builders, communities and developers and sales of homes to consumers by Company-owned retail stores. Wholesale sales prices are primarily comprised of the home and the cost to ship the home from a homebuilding facility to the home-site. Retail home prices include these items and retail markup, as well as items that are largely subject to home buyer discretion, including, but not limited to, installation, utility connections, site improvements, landscaping and additional services. Our homes are constructed in one or more floor sections ("modules") which are then installed on the customer's site. Changes in the number of modules per home, the selection of different home types/models and optional home upgrades create changes in product mix, also causing fluctuations in this metric. The table below presents the mix of modules and homes sold for the three months ended July 2, 2022 and July 3, 2021:
  • Financial services segment revenue decreased primarily due to lower interest income earned on the acquired consumer loan portfolios that continue to amortize, unrealized losses on marketable equity securities in the insurance subsidiary's portfolio and lower volume of home loan sales, partially offset by more insurance policies in force. For the three months ended July 2, 2022 and July 3, 2021, we recognized unrealized losses on marketable equity securities of $1.2 million and unrealized gains of $0.4 million, respectively.

Content analysis

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