Is CAVCO INDUSTRIES, INC. (CVCO) Halal?

NASDAQ Consumer Cyclical United States $3.6B
✓ HALAL
Confidence: 95/100
CAVCO INDUSTRIES, INC. (CVCO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.8% against the AAOIFI threshold of 30%, CAVCO INDUSTRIES, INC. comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Residential Construction), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.8%
/ 30%
9.0%
/ 30%
4.5%
/ 30%
1.05%
/ 5%
✓ HALAL
DJIM 0.8%
/ 33%
9.0%
/ 33%
4.5%
/ 33%
1.05%
/ 5%
✓ HALAL
MSCI 2.2%
/ 33%
26.7%
/ 33%
13.4%
/ 33%
1.05%
/ 5%
✓ HALAL
S&P 0.8%
/ 33%
9.0%
/ 33%
4.5%
/ 33%
1.05%
/ 5%
✓ HALAL
FTSE 2.2%
/ 33%
26.7%
/ 33%
13.4%
/ 50%
1.05%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
20.3
Forward: 18.6
EPS
$23.00
P/B Ratio
3.3
EV/EBITDA
13.6
EV: $3.4B
Revenue
$2.0B
Growth: 11.3%
Beta
1.3
High volatility
Current Ratio
2.5

Profitability

Gross Margin 22.3%
Operating Margin 9.9%
Net Margin 8.4%
Return on Equity (ROE) 17.2%
Return on Assets (ROA) 10.1%

Cash Flow & Balance Sheet

Operating Cash Flow$178M
Free Cash Flow$157M
Total Debt$32M
Debt-to-Equity3.8
Current Ratio2.5
Total Assets$1.4B

Price & Trading

Last Close$472.64
50-Day MA$558.42
200-Day MA$533.11
Avg Volume202K
Beta1.3
52-Week Range
$393.53
$713.01

About CAVCO INDUSTRIES, INC. (CVCO)

CEO
Mr. William C. Boor C.F.A.
Employees
7,000
Sector
Consumer Cyclical
Industry
Residential Construction
Country
United States
Exchange
NASDAQ
Market Cap
$3.6B
Currency
USD

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. It also produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. In addition, the company provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Further, it offers property and casualty insurance to owners of manufactured homes. The company distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. The company was founded in 1965 and is headquartered in Phoenix, Arizona.

Purification Calculator

As a halal stock with 1.05% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is CAVCO INDUSTRIES, INC. (CVCO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), CAVCO INDUSTRIES, INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is CAVCO INDUSTRIES, INC.'s debt ratio?

CAVCO INDUSTRIES, INC.'s debt ratio is 0.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.2%.

Does CAVCO INDUSTRIES, INC. require dividend purification?

Yes, CAVCO INDUSTRIES, INC. has an impermissible income ratio of 1.05%, which means 1.05% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are CAVCO INDUSTRIES, INC.'s key financial metrics?

CAVCO INDUSTRIES, INC. has a market capitalization of $3.6B, trailing P/E ratio of 20.3, and revenue of $2.0B. The company maintains a gross margin of 22.3% and a net margin of 8.4%. Return on equity stands at 17.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.