Cavco IndustriesCVCO +1.61%95 Gross Margin % is 23.10% as of Mar. 2026, which is 3% above its 10-year median of 22.41. GuruFocus rates CVCO with a GF Score™ of 95/100 and a GF Value™ of $534.00 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 90 Homebuilding & Construction companies, Cavco Industries ranks better than 64.44% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Cavco Industries had a gross margin of 23.10% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Cavco Industries Gross Margin % Related Terms
Cavco Industries Gross Margin % Historical Data
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The historical data trend for Cavco Industries's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Residential Construction subindustry, Cavco Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cavco Industries Gross Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Cavco Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cavco Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Cavco Industries (CVCO) has a Gross Margin % of 23.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cavco Industries and its competitors. This is near median its historical median of 22.41. Over the past decade, Cavco Industries' Gross Margin % has ranged from 20.42 to 25.90. According to the industry distribution chart, Cavco Industries ranks #32 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 35.6%.
Is Cavco Industries' Gross Margin % too high?
Cavco Industries' current Gross Margin % of 23.10% is near median its 10-year median of 22.41. Over the past 10 years, this metric has ranged from a low of 20.42 to a high of 25.90. The Homebuilding & Construction industry median Gross Margin % is 21.34. Cavco Industries' value of 23.10% is 8.2% above this industry median. Based on the distribution chart, Cavco Industries ranks #32 out of 90 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Cavco Industries has a GF Score™ of 95/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cavco Industries' Gross Margin % compare to SKY and MTH?
According to the Homebuilding & Construction industry distribution chart, Cavco Industries ranks #32 out of 90 companies for Gross Margin %. This puts Cavco Industries in the upper half of its industry. The industry median Gross Margin % is 21.34. Cavco Industries' value of 23.10% is 8.2% above this benchmark. Historically, Cavco Industries' own Gross Margin % has ranged from 20.42 to 25.90 over the past decade. While the company's 10-year median is 22.41 vs. the industry median of 21.34, Cavco Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Homebuilding & Construction company?
The median Gross Margin % among Homebuilding & Construction companies is 21.34, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cavco Industries's current Gross Margin % of 23.10% is 8.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Cavco Industries and its competitors. For the Homebuilding & Construction industry, the median Gross Margin % is 21.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cavco Industries's current Gross Margin % is 23.10%, which is near median its own 10-year median of 22.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cavco Industries stock overvalued right now?
Based on GuruFocus' analysis, Cavco Industries (CVCO) is currently considered Modestly Overvalued. The stock's GF Value™ is $534.00, compared to a current price of $618.30 — trading 15.8% above its estimated fair value. The current Gross Margin % is 23.10%, which is near median its 10-year median of 22.41 and 8.2% above the Homebuilding & Construction industry median of 21.34. Cavco Industries' overall GF Score™ is 95/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Cavco Industries (CVCO), the current Gross Margin % is 23.10% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cavco Industries (CVCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cavco Industries stock appears to be overvalued.
The current stock price of $618.30 is trading 15.8% above its estimated GF Value™ of $534.00.
GuruFocus considers Cavco Industries to be Modestly Overvalued.
Key valuation signals for CVCO:
Gross Margin %: 23.10% (near median its 10-year median of 22.41)
GF Value™: $534.00 vs. price of $618.30 (15.8% above fair value)
Industry Position: 8.2% above the Homebuilding & Construction median (#32 of 90)
No single metric tells the full story. See the CVCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cavco Industries Inc designs and produces factory-built homes distributed through a network of independent and company-owned retailers, planned community operators and residential developers. It is also a producer of park model RVs, vacation cabins and Factory-built commercial structures. It operates principally in two segments: factory-built housing, which includes wholesale and retail factory-built housing operations and Financial services, which include manufactured housing consumer finance and insurance. The factory-built housing segment generates the majority of revenue from building and selling manufactured and modular homes to both wholesale customers and end consumers through company owned retail stores.
95GF Score
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