CVCO

Cavco Industries is one of the largest US producers of manufactured and modular homes, with a complementary financial-services arm (lending and insurance). It sits squarely in the path of a powerful structural tailwind: as site-built housing affordability worsens, manufactured housing is the lowest-cost path to homeownership, and Cavco is a scaled, well-run beneficiary. FY2026 results show that quality: revenue grew 11.4% to $2.24B, operating income jumped 20.1% to $229M, and net income rose 11.4% to $191M, for a 23.5% gross margin and a strong 17.3% ROE.

The balance sheet is a standout. Liabilities are just 0.35x equity, the company is effectively debt-free, and operating cash flow surged 49.9% to $267M. Management is a disciplined capital allocator, repurchasing $160M of stock and shrinking the share count 4.2% — sensible for a high-return, low-capital-intensity manufacturer. Retained earnings grew 15.9% to $1.39B. The only minor blemish is cash falling 33.5% to $237M, largely the result of those buybacks and modest capex growth (+65.2% to $35.4M), not operational stress.