DCF Tool

CVCO

Cavco Industries Inc – Manufactured Home (Mobile Home) Manufacturing
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. we are the second largest producer of hud code manufactured homes in the united states, based on reported wholesale shipments, marketed under a variety of brand names including cavco homes, fleetwood homes and palm harbor homes. the company is also a leading producer of park model rvs, vacation cabins, and systems-built commercial structures; as well as modular homes built primarily under the nationwide homes brand. our mortgage subsidiary, countryplace, is an approved fannie mae and ginnie mae seller/servicer and offers conforming mortgages to purchasers of factory-built and site-built homes. our insurance subsidiary, standard, provides property and casualty insurance for owners of manufactured homes.
Analysis Results
Intrinsic Value $1,683.08
Latest Price $367.56
Relative Value 78% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 50.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 50.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 0.399 0.357
2025 0.599 0.478
2026 0.9 0.641
2027 1.35 0.86
2028 2.03 1.15
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 20.8 billion. This corresponds to a present value of 10.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.49 billion. Adding in the terminal value gives a total present value of 14.0 billion.

There are presently 8.35 million outstanding shares, so the intrinsic value per share is 1683.08.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 889,631,000
Current Cash 286,405,000
Current Liabilities 295,770,000
Current Debt 0
Non-Cash Working Capital (NCWC) 307,456,000
Change in NCWC 61,098,000
EBIT 306,378,000
Tax Provision 65,922,000
Depreciation and Amortization 16,903,000
Capital Expenditure -56,639,000
Unlevered Free Cash Flow 261,900,734
Current Assets 809,284,000
Current Cash 264,236,000
Current Liabilities 299,037,000
Current Debt 347,000
Non-Cash Working Capital (NCWC) 246,358,000
Change in NCWC 121,279,000
EBIT 201,794,000
Tax Provision 14,247,000
Depreciation and Amortization 11,017,000
Capital Expenditure -31,452,000
Unlevered Free Cash Flow 289,076,168
Current Assets 713,989,000
Current Cash 341,775,000
Current Liabilities 247,206,000
Current Debt 71,000
Non-Cash Working Capital (NCWC) 125,079,000
Change in NCWC -31,327,000
EBIT 88,087,000
Tax Provision 20,266,000
Depreciation and Amortization 6,324,000
Capital Expenditure -43,055,000
Unlevered Free Cash Flow 1,608,462
Current Assets 597,255,000
Current Cash 256,408,000
Current Liabilities 184,441,000
Current Debt 0
Non-Cash Working Capital (NCWC) 156,406,000
Change in NCWC -2,601,000
EBIT 83,412,000
Tax Provision 17,913,000
Depreciation and Amortization 5,783,000
Capital Expenditure -26,039,000
Unlevered Free Cash Flow 44,485,143
Current Assets 546,548,000
Current Cash 199,990,000
Current Liabilities 188,626,000
Current Debt 1,075,000
Non-Cash Working Capital (NCWC) 159,007,000
Change in NCWC 73,013,000
EBIT 80,694,000
Tax Provision 18,054,000
Depreciation and Amortization 4,698,000
Capital Expenditure -14,973,000
Unlevered Free Cash Flow 126,624,008
Current Assets 493,568,000
Current Cash 198,632,000
Current Liabilities 210,097,000
Current Debt 1,155,000
Non-Cash Working Capital (NCWC) 85,994,000
Change in NCWC -17,736,000
EBIT 69,376,000
Tax Provision 17,021,000
Depreciation and Amortization 4,026,000
Capital Expenditure -20,923,000
Unlevered Free Cash Flow 19,704,745
Current Assets 439,351,000
Current Cash 143,831,000
Current Liabilities 191,790,000
Current Debt 0
Non-Cash Working Capital (NCWC) 103,730,000
Change in NCWC 903,000
EBIT 52,363,000
Tax Provision 17,326,000
Depreciation and Amortization 3,687,000
Capital Expenditure -16,225,000
Unlevered Free Cash Flow 24,316,550
Current Assets 388,344,000
Current Cash 107,906,000
Current Liabilities 179,998,000
Current Debt 2,387,000
Non-Cash Working Capital (NCWC) 102,827,000
Change in NCWC 13,071,000
EBIT 41,979,000
Tax Provision 15,487,000
Depreciation and Amortization 3,922,000
Capital Expenditure -20,633,000
Unlevered Free Cash Flow 23,572,742
Current Assets 355,300,000
Current Cash 103,703,000
Current Liabilities 161,841,000
Current Debt 0
Non-Cash Working Capital (NCWC) 89,756,000
Change in NCWC 23,615,000
EBIT 33,890,000
Tax Provision 13,510,000
Depreciation and Amortization 3,757,000
Capital Expenditure -18,917,000
Unlevered Free Cash Flow 30,078,975
Current Assets 306,237,000
Current Cash 81,238,000
Current Liabilities 158,858,000
Current Debt 0
Non-Cash Working Capital (NCWC) 66,141,000
Change in NCWC -5,168,000
EBIT 26,700,000
Tax Provision 9,099,000
Depreciation and Amortization 4,000,000
Capital Expenditure -2,265,000
Unlevered Free Cash Flow 14,529,603
Current Assets 285,184,000
Current Cash 54,752,000
Current Liabilities 159,123,000
Current Debt 0
Non-Cash Working Capital (NCWC) 71,309,000
Change in NCWC 11,856,000
EBIT 15,069,000
Tax Provision 6,351,000
Depreciation and Amortization 4,010,000
Capital Expenditure -755,000
Unlevered Free Cash Flow 24,431,368
Current Assets 267,626,000
Current Cash 46,471,000
Current Liabilities 166,252,000
Current Debt 4,550,000
Non-Cash Working Capital (NCWC) 59,453,000
Change in NCWC 54,875,000
EBIT 8,880,000
Tax Provision 2,499,000
Depreciation and Amortization 5,556,000
Capital Expenditure -2,427,000
Unlevered Free Cash Flow 66,195,412

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.