Cavco Industries Intrinsic Value Calculation – CAVCO INDUSTRIES Reports Q1 Earnings Results for FY2024 Period Ending June 30 2023
August 8, 2023
🌥️Earnings Overview
On August 3 2023, CAVCO INDUSTRIES ($NASDAQ:CVCO) reported their fiscal year 2024 first quarter earnings results for the period ending June 30 2023. Total revenue for the quarter amounted to USD 475.9 million, representing a decrease of 19.1% compared to the same quarter of the previous year. Net income for the quarter stood at USD 46.4 million, representing a 22.2% decline year-on-year.
Stock Price
On Thursday, CAVCO Industries reported its earnings results for the first quarter of the fiscal year 2024, which ended on June 30, 2023. The company’s stock opened at $285.6 and closed at $278.8, down by 2.6% from the previous closing price of $286.2. CAVCO Industries achieved strong results despite facing certain challenges, such as the pandemic-induced reduction in demand and labor shortages due to the restrictions imposed by governments in various countries. The company was able to adjust its operations and implement cost-saving measures which enabled it to remain profitable despite the difficult market conditions.
Overall, CAVCO Industries reported solid results for the first quarter of FY2024 ending June 30, 2023. The company’s stock experienced a slight dip in price, which can be expected given the volatile market conditions and the overall state of the economy. Despite this, investors are optimistic that CAVCO Industries will be able to continue to deliver strong results moving forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cavco Industries. More…
| Total Revenues | Net Income | Net Margin |
| 2.03k | 227.31 | 11.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cavco Industries. More…
| Operations | Investing | Financing |
| 255.69 | -129.34 | -102.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cavco Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.35k | 329.1 | 117.9 |
Key Ratios Snapshot
Some of the financial key ratios for Cavco Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.5% | 50.9% | 14.2% |
| FCF Margin | ROE | ROA |
| 10.4% | 18.1% | 13.4% |
Analysis – Cavco Industries Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of CAVCO INDUSTRIES‘ wellbeing. After studying the company’s financials and other relevant data, we calculated its intrinsic value to be approximately $344.8. This figure was calculated using our proprietary Valuation Line, which takes into account various fundamental metrics of the company. At the current market price of $278.8, we believe that CAVCO INDUSTRIES’ stock is trading at a fair price, yet it is still undervalued by 19.1%. This presents a buying opportunity for investors looking to capitalize on a potentially profitable stock. More…
Peers
The company has a long history of competition with other leading companies in the industry, including Skyline Champion Corp, Century Communities Inc, and Tama Home Co Ltd. Cavco has a reputation for innovation and quality, and is always looking for ways to improve its products and services. The company is committed to providing its customers with the best possible value, and its competitive prices and superior quality have helped it to become one of the most successful companies in the industry.
– Skyline Champion Corp ($NYSE:SKY)
Skyline Champion Corp is a leading manufacturer of modular homes, mobile homes, and RV park model homes in North America. The company has a market cap of 2.69B as of 2022 and a Return on Equity of 34.19%. Skyline Champion Corp is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol SKY.
– Century Communities Inc ($NYSE:CCS)
Century Communities, Inc. engages in the development, design, construction, marketing, and sale of residential single-family attached and detached homes in metropolitan areas in Colorado, Texas, Arizona, Nevada, Georgia, North Carolina, and Washington. As of December 31, 2020, the company owned and controlled approximately 25,700 lots. It sells its homes through its sales associates, as well as through independent real estate brokers. The company was founded in 2013 and is headquartered in Greenwood Village, Colorado.
– Tama Home Co Ltd ($TSE:1419)
Tama Home Co Ltd is a Japanese home goods company with a market cap of 66.87B as of 2022. The company has a Return on Equity of 26.04%. Tama Home Co Ltd designs, manufactures, and sells home goods, including furniture, kitchenware, and bathroom fixtures. The company operates in Japan, China, and the United States.
Summary
Investors may be wary of CAVCO Industries‘ FY2024 Q1 earnings results, which showed a 19.1% decrease in total revenue and a 22.2% drop in net income. Despite the overall decline in earnings, the company still had an impressive quarter, with a net income of USD 46.4 million. It is unclear what the impact of these figures will be on the stock price, but investors should monitor the performance of the company in the coming quarters. Additionally, strategies such as cost-cutting and product diversification may help to offset the negative impacts of the current economic environment.
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