Cavco Industries, Inc. (CVCO) vs Toll Brothers Inc. (TOL)

Cavco Industries, Inc. and Toll Brothers Inc. are both Residential Construction companies. Toll Brothers Inc. is the larger, with a market value of $12.5B against $4.2B — 3.0× the size. Toll Brothers Inc. trades at the lower P/E: 11.0× against 24.0×. Cavco Industries, Inc. grew revenue faster over the last twelve months: 9.69% against −1.08%. Toll Brothers Inc. has the higher net margin (11.1% vs 7.89%) and the lower return on invested capital (9.08% vs 16.7%). Across the 22 metrics below, Toll Brothers Inc. leads on 13 and Cavco Industries, Inc. on 9.

Valuation

Metric CVCO TOL Residential Construction median
P/E 23.99 10.95 13.51
P/S 1.87 1.20 1.02
P/B 3.87 1.51 1.17
Price to free cash flow 18.29 11.83 16.79
EV/EBITDA 16.51 9.22 10.48
EV/Sales 1.76 1.36 1.31
Earnings yield 4.17% 9.13% 7.37%
Free cash flow yield 5.47% 8.45% 5.73%

Profitability

Metric CVCO TOL Residential Construction median
Gross margin 23.15% 23.75% 22.30%
Operating margin 9.62% 13.84% 9.03%
Net margin 7.89% 11.14% 7.30%
Free cash flow margin 10.22% 10.13% 8.46%
Return on equity 16.66% 14.39% 9.84%
Return on assets 12.24% 8.24% 7.43%
Return on invested capital 16.71% 9.08% 6.90%

Growth

Metric CVCO TOL Residential Construction median
Revenue growth (TTM) 9.69% (1.08%) (7.37%)
EPS growth (last fiscal year) 15.79% (10.13%) —
Revenue growth, 5-year CAGR 15.16% 9.15% 8.74%
Net income growth, 5-year CAGR 19.98% 24.70% 8.43%

Health

Metric CVCO TOL Residential Construction median
Debt to equity 0.00 0.32 0.20
Current ratio 2.23 4.53 3.56
Net debt to EBITDA (1.09) 0.85 0.28

Dividend

Metric CVCO TOL Residential Construction median
Dividend yield — 0.85% 0.89%
Payout ratio 0.00 0.06 0.00

Size

Metric CVCO TOL Residential Construction median
Market cap 4.18b 12.54b 4.18b

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