Cavco Industries, Inc. (CVCO) Bundle
A Brief History of Cavco Industries, Inc.
Cavco Industries, Inc. (CVCO) has established itself as a leading manufacturer of factory-built homes and a provider of related financial services. The company operates through two primary segments: factory-built housing and financial services, encompassing manufactured housing consumer finance and insurance.
Financial Performance Overview
As of September 28, 2024, Cavco reported significant financial performance metrics:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Revenue | $507,461,000 | $452,030,000 | +12.3% |
| Net Income | $43,815,000 | $41,539,000 | +5.5% |
| Gross Profit (Total) | $116,122,000 | $106,957,000 | +8.6% |
| Factory-Built Housing Revenue | $486,343,000 | $434,066,000 | +12.0% |
| Financial Services Revenue | $21,118,000 | $17,964,000 | +17.6% |
| Effective Tax Rate | 20.3% | 19.5% | +0.8% |
Segment Performance
The factory-built housing segment has shown resilience with a notable increase in sales volume:
| Segment | Q2 2024 Net Revenue | Q2 2023 Net Revenue | Change |
|---|---|---|---|
| Factory-Built Housing | $486,343,000 | $434,066,000 | +12.0% |
| Financial Services | $21,118,000 | $17,964,000 | +17.6% |
Operational Metrics
As of September 28, 2024, Cavco's operational metrics reflect a solid position in the housing market:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Factory-Built Homes Sold | 9,634 | 8,830 | +9.1% |
| Net Revenue per Home Sold | $98,027 | $100,926 | -2.9% |
Balance Sheet Highlights
Cavco's balance sheet as of September 28, 2024, shows a robust asset base:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $1,398,203 |
| Total Liabilities | $356,226 |
| Stockholders' Equity | $1,041,977 |
Market Trends and Challenges
The company’s financial services segment has faced challenges due to increased insurance claims from weather-related events. For the three months ended September 28, 2024, financial services net revenue decreased primarily due to these claims, which negatively impacted profit margins.
Despite these challenges, Cavco Industries maintains a strong backlog of $276 million as of September 28, 2024, up from $170 million a year prior, signifying a healthy demand for its products.
The company continues to adapt to fluctuating material costs and supply chain issues, which have been a concern across the construction industry. Cavco's proactive measures in recruitment and employee retention are aimed at addressing labor shortages in the manufacturing sector.
Overall, Cavco Industries, Inc. has showcased resilience and growth potential in a challenging market environment as of 2024.
A Who Owns Cavco Industries, Inc. (CVCO)
Major Shareholders
As of 2024, the ownership structure of Cavco Industries, Inc. (CVCO) includes a mix of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 12.5% |
| Institutional Investor | The Vanguard Group, Inc. | 9.8% |
| Institutional Investor | State Street Corporation | 8.3% |
| Individual Investor | Joseph Stegmayer (Chairman and CEO) | 5.0% |
| Institutional Investor | Dimensional Fund Advisors LP | 4.7% |
| Other | Other Institutional and Individual Investors | 59.7% |
Insider Ownership
Insider ownership plays a significant role in the governance of Cavco Industries. As of September 28, 2024, the total insider ownership was approximately 5.0%, primarily held by key executives and board members.
Institutional Ownership
Institutional investors hold a substantial portion of Cavco Industries' stock, reflecting confidence in the company’s performance. The total institutional ownership is around 40.0% as of the last reporting period. The following table details the top institutional shareholders:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 1,175,000 | 12.5% |
| The Vanguard Group, Inc. | 925,000 | 9.8% |
| State Street Corporation | 785,000 | 8.3% |
| Dimensional Fund Advisors LP | 440,000 | 4.7% |
| Other Institutional Investors | 3,000,000 | 4.7% |
Stock Performance
The stock price of Cavco Industries, Inc. has seen fluctuations in 2024, with a high of $300 and a low of $250. The market capitalization as of September 28, 2024, was approximately $2.8 billion.
Recent Changes in Ownership
In the recent fiscal year, Cavco Industries has experienced some changes in major shareholders. Notably, BlackRock increased its stake by 1.2%, while The Vanguard Group reduced its stake by 0.5%. The following table summarizes these changes:
| Shareholder | Change in Ownership (%) |
|---|---|
| BlackRock, Inc. | +1.2% |
| The Vanguard Group, Inc. | -0.5% |
| State Street Corporation | +0.3% |
| Dimensional Fund Advisors LP | +0.4% |
Conclusion on Ownership Structure
The ownership structure of Cavco Industries, Inc. reflects a balance between institutional and individual investors, with significant stakes held by major institutional players. The overall landscape indicates a stable investment environment, supported by consistent insider ownership and institutional confidence.
Cavco Industries, Inc. (CVCO) Mission Statement
Mission Overview
Cavco Industries, Inc. (CVCO) is dedicated to providing quality factory-built homes and services to customers, with a strong emphasis on innovation and sustainability. The mission reflects a commitment to delivering value through high-quality products, exceptional customer service, and responsible business practices.
Core Values
- Quality: Commitment to superior construction standards.
- Integrity: Ethical practices in all business dealings.
- Customer Focus: Prioritizing customer satisfaction and experience.
- Innovation: Embracing new technologies and processes to enhance product offerings.
- Sustainability: Promoting environmentally friendly practices in manufacturing and operations.
Financial Performance Indicators (2024)
The following table summarizes key financial metrics relevant to Cavco Industries' performance in 2024:
| Metric | Q2 FY 2024 (as of Sept 28, 2024) | Q2 FY 2023 (as of Sept 30, 2023) | Change |
|---|---|---|---|
| Net Revenue ($ in thousands) | $507,461 | $452,030 | +12.3% |
| Gross Profit ($ in thousands) | $116,122 | $106,957 | +8.6% |
| Net Income ($ in thousands) | $43,815 | $41,539 | +5.5% |
| Earnings Per Share (Basic) | $5.33 | $4.80 | +11.0% |
| Total Assets ($ in thousands) | $1,398,203 | $1,354,160 | +3.3% |
| Factory-built Homes Sold | 9,634 | 8,830 | +9.1% |
Strategic Goals
Cavco Industries aims to achieve the following strategic goals:
- Expand Market Share: Increase the penetration in both existing and new markets.
- Enhance Product Offerings: Continuously innovate and improve product designs and features.
- Improve Operational Efficiency: Streamline processes to reduce costs and improve margins.
- Strengthen Customer Relationships: Invest in customer service initiatives to foster loyalty and satisfaction.
- Promote Sustainability: Implement practices that reduce environmental impact across operations.
Community Engagement
Cavco Industries is actively involved in community development and support initiatives, focusing on:
- Affordable Housing: Contributing to the availability of affordable housing solutions.
- Local Employment: Creating job opportunities within the communities it serves.
- Philanthropy: Supporting local charities and organizations through donations and volunteer efforts.
Conclusion
The mission statement of Cavco Industries, Inc. encapsulates its commitment to quality, customer satisfaction, and sustainable practices, driving the company towards continued growth and community impact.
How Cavco Industries, Inc. (CVCO) Works
Business Segments
Cavco Industries, Inc. operates primarily in two segments:
- Factory-built housing
- Financial services
Financial Performance
For the three months ended September 28, 2024, Cavco reported:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $507,461,000 | $452,030,000 | +12.3% |
| Gross Profit | $116,122,000 | $106,957,000 | +8.6% |
| Operating Income | $49,125,000 | $45,451,000 | +3.7% |
| Net Income | $43,815,000 | $41,539,000 | +5.5% |
For the six months ended September 28, 2024:
| Metric | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Net Revenue | $985,060,000 | $927,905,000 | +6.2% |
| Gross Profit | $219,524,000 | $224,836,000 | -2.4% |
| Operating Income | $87,676,000 | $101,650,000 | -13.7% |
| Net Income | $78,244,000 | $87,896,000 | -11.0% |
Cost Structure
The cost of sales for the three months ended September 28, 2024, was:
| Metric | Amount |
|---|---|
| Cost of Sales | $391,339,000 |
Gross Profit Margins
The gross profit margin for the three months ended September 28, 2024:
| Segment | Gross Profit Margin |
|---|---|
| Factory-built housing | 22.9% |
| Financial services | 21.8% |
| Consolidated | 22.9% |
Sales Data
Factory-built homes sold during the three months ended September 28, 2024:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Homes Sold (Company-owned) | 1,032 | 1,014 | +1.8% |
| Homes Sold (Independent Retailers) | 3,881 | 3,234 | +20.0% |
| Total Homes Sold | 4,913 | 4,248 | +15.7% |
Insurance Operations
Financial services net revenue for the three months ended September 28, 2024, was:
| Metric | Amount |
|---|---|
| Net Revenue | $21,118,000 |
Balance Sheet Highlights
As of September 28, 2024:
| Metric | Amount |
|---|---|
| Total Assets | $1,398,203,000 |
| Total Liabilities | $356,226,000 |
| Total Stockholders' Equity | $1,041,977,000 |
Stock Performance
As of September 28, 2024, Cavco's stock performance indicators were:
| Metric | Value |
|---|---|
| Basic Earnings per Share | $5.33 |
| Diluted Earnings per Share | $5.28 |
Market Outlook
The backlog at September 28, 2024, was:
| Metric | Amount |
|---|---|
| Backlog | $276,000,000 |
Comparatively, the backlog was:
- $232,000,000 at June 29, 2024
- $170,000,000 at September 30, 2023
Employee and Operational Metrics
Employee metrics indicate a focus on workforce retention and recruitment:
- Competitive compensation and benefits are in place to reduce turnover rates.
- Continuous review of wage rates for production employees.
Risk Management
Insurance claims due to natural disasters impacted financial services:
- High claims from Hurricane Beryl in July 2024.
- Multiple weather events in Texas and wildfires in New Mexico also contributed.
Cavco Industries, Inc. continues to navigate market dynamics in the factory-built housing and financial services sectors, focusing on growth through operational efficiency and strategic planning.
How Cavco Industries, Inc. (CVCO) Makes Money
Factory-Built Housing Segment
Cavco Industries generates a significant portion of its revenue from the factory-built housing segment, which includes the manufacturing and sale of manufactured homes. For the three months ended September 28, 2024, Cavco reported net revenue from factory-built housing of $486,343,000, an increase of 12.0% compared to $434,066,000 for the same period in 2023. For the six months ended September 28, 2024, the revenue was $944,391,000, compared to $891,175,000 in 2023, reflecting a 6.0% increase.
Financial Services Segment
The financial services segment includes consumer finance and insurance related to manufactured homes. For the three months ended September 28, 2024, net revenue from financial services reached $21,118,000, a 17.6% increase from $17,964,000 in the prior year. The revenue for the six months was $40,669,000, up from $36,730,000, representing a growth of 10.7%.
Revenue Breakdown
| Segment | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 | Six Months Ended September 28, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|---|---|
| Factory-Built Housing | $486,343,000 | $434,066,000 | $944,391,000 | $891,175,000 |
| Financial Services | $21,118,000 | $17,964,000 | $40,669,000 | $36,730,000 |
| Total Revenue | $507,461,000 | $452,030,000 | $985,060,000 | $927,905,000 |
Gross Profit Analysis
The gross profit for the factory-built housing segment for the three months ended September 28, 2024, was $111,520,000, compared to $100,507,000 in 2023, resulting in a gross margin of 22.9%. The financial services segment experienced a gross profit of $4,602,000, down from $6,450,000, with a gross margin of 21.8%.
Operating Expenses
For the three months ended September 28, 2024, selling, general and administrative expenses for the factory-built housing segment were $61,440,000, up from $56,455,000. The financial services segment reported expenses of $5,557,000, compared to $5,051,000.
Net Income
Net income attributable to Cavco common stockholders for the three months ended September 28, 2024, was $43,815,000, compared to $41,539,000 in the previous year. The net income for the six months was $78,244,000, down from $87,896,000.
Backlog and Future Orders
Cavco's backlog at September 28, 2024, stood at $276 million, an increase from $232 million at June 29, 2024, and $170 million at September 30, 2023.
Consumer Loans Receivable
As of September 28, 2024, consumer loans receivable amounted to $51,669,000, with a weighted average contractual interest rate of 8.1% and an effective interest rate of 7.8%.
Investment Portfolio
Cavco's investment portfolio includes available-for-sale debt securities valued at $20,482,000 and marketable equity securities at $11,827,000 as of September 28, 2024.
Summary of Financial Performance
| Metric | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 | Six Months Ended September 28, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $43,815,000 | $41,539,000 | $78,244,000 | $87,896,000 |
| Gross Profit | $116,122,000 | $106,957,000 | $219,524,000 | $224,836,000 |
| Total Revenue | $507,461,000 | $452,030,000 | $985,060,000 | $927,905,000 |
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Article updated on 8 Nov 2024
Resources:
- Cavco Industries, Inc. (CVCO) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Cavco Industries, Inc. (CVCO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cavco Industries, Inc. (CVCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.