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Attractive stocks have exceptional fundamentals. In the case of Cavco Industries, Inc. (NASDAQ:CVCO), there's is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Cavco Industries here.
Flawless balance sheet with solid track record
Over the past year, CVCO has grown its earnings by 41%, with its most recent figure exceeding its annual average over the past five years. Not only did CVCO outperformed its past performance, its growth also surpassed the Consumer Durables industry expansion, which generated a 35% earnings growth. This is what investors like to see! CVCO's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that CVCO manages its cash and cost levels well, which is a crucial insight into the health of the company. CVCO appears to have made good use of debt, producing operating cash levels of 1.1x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Cavco Industries, I've compiled three relevant factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CVCO’s future growth? Take a look at our free research report of analyst consensus for CVCO’s outlook.
- Valuation: What is CVCO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CVCO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CVCO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.