Cavco Industries, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $232M normalized FCF base (FY2026 operating cash flow $267.5M less $35.4M capex); 8% annual FCF growth for years 1-5; 6% for years 6-10; 9.5% discount rate; 3% terminal growth; $210M net cash; 7.7M shares outstanding.

Reasoning: Cavco is the #2 US manufactured-housing producer with a debt-free, net-cash balance sheet and demonstrated operating leverage; growth assumptions track consensus FY2027 revenue growth (~8.6%) and the structural US housing-affordability/shortage tailwind, moderating over the decade as volumes normalize.