AOSL

Alpha & Omega

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Semiconductors

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

Cavco Industries generates cash by manufacturing and distributing factory-built homes, leveraging scale efficiencies in production rather than relying solely on traditional site-built construction margins. The business converts raw materials into standardized housing units, allowing tighter cost control and better inventory management than fragmented local builders. Its moat is rooted in manufacturing expertise, distribution networks, and operational scale that support a 16.90% operating margin in a competitive industry. Strong balance sheet metrics, including a 9.80% Debt/Equity ratio and 2.5 current ratio, give it resilience to outlast weaker competitors during housing downturns, reinforcing its competitive positioning over time.

VALUATION

P/E

-

Market Cap ($M USD)

$773

Forward P/E

-

PEG

-

PRICE TO SALES

1.1

PRICE TO BOOK

0.9

EV / EBITDA

21.7

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$3.51

Next Year EPS Growth Estimate

-$0.47

Next Year Revenue Growth Estimate

6.50%

Return on Equity (ROE)

-12.60%

Operating Margin

-5.90%

Debt-to-Equity

0

Piotroski F-Score

5

Altman Z-Score

4.2

Return on Invested Capital (ROIC)

-12.00%%

Current Ratio

3.4

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 22.5x earnings and 20.7x forward earnings, CVCO is not statistically cheap, but it is far from stretched given a 16.50% ROIC and an Altman Z-Score of 10 signaling exceptional balance sheet safety. The PEG Forward of 1.7 suggests growth is not deeply discounted, yet the combination of 16.90% operating margins and a modest 9.80% Debt/Equity ratio indicates disciplined capital structure and operational strength. A Piotroski F-Score of 7 reinforces fundamental stability, while a 2.5 current ratio confirms liquidity. This is not a distressed deep-value play; it is a financially solid compounder priced at a reasonable, not bargain, multiple. The market appears to be pricing it as a steady cyclical rather than a structurally superior operator.

AI Exposure / Tech Reliance

As a Residential Construction company, CVCO operates in a sector that can benefit from automation, supply-chain optimization, and manufacturing efficiencies driven by AI. Factory-built housing models are structurally more adaptable to process automation than traditional on-site construction. Technology adoption could reinforce margins like the current 16.90% operating margin, but the industry remains capital and cycle sensitive.

The Bull Case

A GARP investor buys this because the numbers scream quality within a cyclical wrapper. A 16.50% ROIC against a 3.7 Price/Book implies the company is generating returns well above its capital base, while a Piotroski F-Score of 7 confirms operational and balance sheet strength. The 16.90% operating margin in Residential Construction is a serious competitive signal, not mediocrity. Debt/Equity at just 9.80% combined with an Altman Z-Score of 10 means bankruptcy risk is negligible, giving management flexibility during housing downturns. With EPS at 14.9 and forward earnings supported by a 20.7 Forward P/E, investors are paying a fair multiple for a business that is financially sturdy and operationally efficient.

The Bear Case

The valuation is not screaming cheap. A 22.5 P/E and 1.7 PEG Forward in a cyclical, rate-sensitive industry leaves little margin for macro error. Return on Equity at 7.70% is underwhelming relative to the 16.50% ROIC, raising questions about capital deployment efficiency at the equity level. Price/Sales at 1.9 in Residential Construction assumes sustained demand, yet the sector is exposed to economic slowdowns and housing affordability shocks. With TTM Yield at 0 and no dividend support, investors rely entirely on multiple stability and earnings execution—there is no income cushion if sentiment turns.

Market Sentiment & Smart Money

Short Interest %

7.40%

Analyst Consensus

2.5

Average Analyst Price Target

$22.00

Institutional Ownership %

76.50%

1-Year Beta

2.56

Insider Buying % (6 Mo)

17.10%%

Distance to 52-Week High

78.70%%

Distance to 52-Week Low

163.50%%