Cavco IndustriesCVCO -0.16%96 Return-on-Tangible-Equity is 19.76% as of Mar. 2026, which is 9% above its 10-year median of 18.14. GuruFocus rates CVCO with a GF Score™ of 96/100 and a GF Value™ of $535.66 (Fairly Valued). The stock has 1 warning sign investors should review. Among 93 Homebuilding & Construction companies, Cavco Industries ranks better than 87.1% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Cavco Industries's annualized net income for the quarter that ended in Mar. 2026 was $170 Mil. Cavco Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $860 Mil. Therefore, Cavco Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.76%.
The historical rank and industry rank for Cavco Industries's Return-on-Tangible-Equity or its related term are showing as below:
CVCO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.93 Med: 18.14 Max: 31.38
Current: 21.08
During the past 13 years, Cavco Industries's highest Return-on-Tangible-Equity was 31.38%. The lowest was 12.93%. And the median was 18.14%.
CVCO's Return-on-Tangible-Equity is ranked better than 87.1% of 93
companies
in the Homebuilding & Construction industry
Industry Median: 8.37
vs CVCO: 21.08
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Cavco Industries Return-on-Tangible-Equity Related Terms
Cavco Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Cavco Industries's Return-on-Tangible-Equity 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, MHO, MTH: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, Cavco Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Cavco Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cavco Industries's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.76% mean?
Cavco Industries (CVCO) has a Return-on-Tangible-Equity of 19.76% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cavco Industries and its competitors. This is near median its historical median of 18.14. Over the past decade, Cavco Industries' Return-on-Tangible-Equity has ranged from 12.93 to 31.38. According to the industry distribution chart, Cavco Industries ranks #12 out of 93 companies in the Homebuilding & Construction industry, placing it in the top 12.9%.
Is Cavco Industries' Return-on-Tangible-Equity too high?
Cavco Industries' current Return-on-Tangible-Equity of 19.76% is near median its 10-year median of 18.14. Over the past 10 years, this metric has ranged from a low of 12.93 to a high of 31.38. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.37. Cavco Industries' value of 19.76% is 136.1% above this industry median. Based on the distribution chart, Cavco Industries ranks #12 out of 93 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Cavco Industries has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cavco Industries' Return-on-Tangible-Equity compare to SKY and MHO?
According to the Homebuilding & Construction industry distribution chart, Cavco Industries ranks #12 out of 93 companies for Return-on-Tangible-Equity. This places Cavco Industries in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.37. Cavco Industries' value of 19.76% is 136.1% above this benchmark. Historically, Cavco Industries' own Return-on-Tangible-Equity has ranged from 12.93 to 31.38 over the past decade. While the company's 10-year median is 18.14 vs. the industry median of 8.37, 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 Return-on-Tangible-Equity for a Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.37, based on 93 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cavco Industries's current Return-on-Tangible-Equity of 19.76% is 136.1% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cavco Industries and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cavco Industries's current Return-on-Tangible-Equity is 19.76%, which is near median its own 10-year median of 18.14. 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 Fairly Valued. The stock's GF Value™ is $535.66, compared to a current price of $567.26 — trading 5.9% above its estimated fair value. The current Return-on-Tangible-Equity is 19.76%, which is near median its 10-year median of 18.14 and 136.1% above the Homebuilding & Construction industry median of 8.37. Cavco Industries' overall GF Score™ is 96/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Cavco Industries (CVCO), the current Return-on-Tangible-Equity is 19.76% 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 $567.26 is trading 5.9% above its estimated GF Value™ of $535.66.
GuruFocus considers Cavco Industries to be Fairly Valued.
Key valuation signals for CVCO:
Return-on-Tangible-Equity: 19.76% (near median its 10-year median of 18.14)
GF Value™: $535.66 vs. price of $567.26 (5.9% above fair value)
Industry Position: 136.1% above the Homebuilding & Construction median (#12 of 93)
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.
96GF Score
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