Cavco IndustriesCVCO -0.59%95 Operating Margin % is 9.36% as of Mar. 2026, which is 3% above its 10-year median of 9.09. GuruFocus rates CVCO with a GF Score™ of 95/100 and a GF Value™ of $533.89 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 91 Homebuilding & Construction companies, Cavco Industries ranks better than 62.64% on this metric.
Cavco Industries Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Cavco Industries's Operating Margin % or its related term are showing as below:
CVCO'
s Operating Margin % Range Over the Past 10 Years
Min: 7.34 Med: 9.09 Max: 13.84
Current: 10.18
CVCO's Operating Margin % is ranked better than 62.64% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 7.76
vs CVCO: 10.18
Cavco Industries's 5-Year Average Operating Margin % Growth Rate was 0.10% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Cavco Industries Operating Margin % Related Terms
Cavco Industries Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cavco Industries's Operating 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.
CVCO vs SKY, MTH, MHO: Operating Margin % Comparison
For the Residential Construction subindustry, Cavco Industries's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Cavco Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cavco Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Cavco Industries's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Cavco Industries (CVCO) has a Operating Margin % of 9.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cavco Industries and its competitors. This is near median its historical median of 9.09. Over the past decade, Cavco Industries' Operating Margin % has ranged from 7.34 to 13.84. According to the industry distribution chart, Cavco Industries ranks #34 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 37.4%.
Is Cavco Industries' Operating Margin % too high?
Cavco Industries' current Operating Margin % of 9.36% is near median its 10-year median of 9.09. Over the past 10 years, this metric has ranged from a low of 7.34 to a high of 13.84. The Homebuilding & Construction industry median Operating Margin % is 7.76. Cavco Industries' value of 9.36% is 20.6% above this industry median. Based on the distribution chart, Cavco Industries ranks #34 out of 91 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' Operating Margin % compare to SKY and MTH?
According to the Homebuilding & Construction industry distribution chart, Cavco Industries ranks #34 out of 91 companies for Operating Margin %. This puts Cavco Industries in the upper half of its industry. The industry median Operating Margin % is 7.76. Cavco Industries' value of 9.36% is 20.6% above this benchmark. Historically, Cavco Industries' own Operating Margin % has ranged from 7.34 to 13.84 over the past decade. While the company's 10-year median is 9.09 vs. the industry median of 7.76, 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 Operating Margin % for a Homebuilding & Construction company?
The median Operating Margin % among Homebuilding & Construction companies is 7.76, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cavco Industries's current Operating Margin % of 9.36% is 20.6% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Cavco Industries and its competitors. For the Homebuilding & Construction industry, the median Operating Margin % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cavco Industries's current Operating Margin % is 9.36%, which is near median its own 10-year median of 9.09. 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 $533.89, compared to a current price of $608.52 — trading 14% above its estimated fair value. The current Operating Margin % is 9.36%, which is near median its 10-year median of 9.09 and 20.6% above the Homebuilding & Construction industry median of 7.76. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Cavco Industries (CVCO), the current Operating Margin % is 9.36% 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 $608.52 is trading 14% above its estimated GF Value™ of $533.89.
GuruFocus considers Cavco Industries to be Modestly Overvalued.
Key valuation signals for CVCO:
Operating Margin %: 9.36% (near median its 10-year median of 9.09)
GF Value™: $533.89 vs. price of $608.52 (14% above fair value)
Industry Position: 20.6% above the Homebuilding & Construction median (#34 of 91)
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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