Champion Homes (SKY) AI Stock Analysis

• Market Cap: $4.33B
• Dividend Yield: N/A
• Average Volume (3M): 753.67K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.95
• Revenue Growth: 12.14%
• EPS Growth: 48.68%
• Country: US
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.96
• Shares Outstanding: 55,302,020
• 10 Day Avg. Volume: 648,080
• 30 Day Avg. Volume: 753,669
• PEG Ratio: 0.77
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 28.45
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 11.61
• 1Y Price Target: $102.33
• Price Target Upside: 30.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.77
• Revenue Forecast (FY): $2.65B

• Rating: 74 Outperform
• Price Target: $89.00 ▲(13.67% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by strong financial quality (notably low leverage and solid cash generation with a sharp TTM revenue rebound). Offsetting factors include a mixed near-term earnings outlook with margin/backlog pressure, a valuation that looks relatively full at ~24x earnings with no dividend, and only moderate technical momentum.

Positive Factors

Conservative balance sheet

Champion Homes' debt-to-equity near 0.08 and a ~$1.59B equity base supporting ~$2.11B of assets provide durable financial flexibility. Low leverage reduces refinancing and solvency risk, enabling consistent capital allocation (capex, buybacks, M&A) through housing cycles.

Strong cash generation

Sustained operating cash flow (~$297M TTM) and strong free cash flow (~$260M TTM) create reliable internal funding for reinvestment, inventory builds and shareholder returns. This cash strength supports resilience in a cyclical sector despite some period-to-period cash conversion volatility.

Strong brand and product innovation

Repeated industry trust recognition and a portfolio of competitive, affordable products (e.g., new Emerald Sky model) underpin durable demand and pricing advantages in the manufactured-housing segment. Brand equity and relevant product innovation support channel relationships and long-term market share.

Negative Factors

Margin compression

A 190bp gross margin decline and lower EBITDA margins reflect rising input costs and weaker volume absorption. Persistent margin normalization reduces core earnings power and limits free-cash-flow upside, making profitability more sensitive to materials, tariffs and steady capacity utilization.

Low utilization & shrinking backlog

A 15% backlog decline and sub-60% utilization indicate underused capacity and shorter lead times. Lower absorption increases fixed-cost per unit, amplifying margin volatility and constraining operating leverage until demand and order visibility sustainably improve.

Community channel weakness

Softness in the community REIT channel reduces a previously steady demand source and increases reliance on captive retail and acquisitions. Channel concentration risk amplifies cyclical exposure and adds uncertainty to volume forecasting and working-capital planning over coming quarters.

Champion Homes Business Overview & Revenue Model

Company Description

Champion Homes, Inc. produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada. The company also provides construction services to install and set-up factory-built homes; operates Titan Factory Direct, a factory-direct manufactured home retail business with 18 sales centers in the southern United States; and engages in the transportation of manufactured homes and recreational vehicles. The company was founded in 2010 and is headquartered in Troy, Michigan.

How the Company Makes Money

Champion Homes primarily makes money by manufacturing and selling factory-built housing products. Its core revenue stream is the sale of manufactured and modular homes (and related residential units), where revenue is recognized when homes are delivered/sold to customers such as independent retailers, manufactured housing communities/operators, and developers/builders. The company also generates revenue from complementary products and services associated with its homes, including transportation/delivery and installation/setup services where offered/contracted, as well as the sale of parts, accessories, and after-market support tied to its installed base. Earnings are influenced by production volume and capacity utilization across its plants, product mix (e.g., price points, customization, modular vs. manufactured), input costs (materials and labor), and demand conditions in U.S. housing markets and consumer credit availability. Specific material partnerships or the percentage breakdown of revenue by stream is null.

Champion Homes Financial Statement Overview

Summary

Strong overall fundamentals led by a very conservative balance sheet (very low leverage, healthy equity base) and a sharp TTM revenue rebound with solid profitability. Main offsets are margin normalization versus 2023 peak levels and somewhat uneven cash conversion/through-cycle volatility despite positive and improving free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (+44.5%) and profitability remains solid (gross margin ~26.6%, net margin ~8.4%). Earnings have recovered versus 2024, but margins are well below the peak levels seen in 2023 (net margin ~15.4%), highlighting cyclicality and pricing/volume pressure compared with prior highs.

Balance Sheet

Balance sheet is conservatively positioned with very low leverage (TTM debt-to-equity ~0.08) and a large equity base (~$1.59B) supporting ~$2.11B of assets. Returns on equity are healthy (~14.2% TTM) though notably below the exceptionally strong 2022–2023 period, suggesting profitability has normalized even as financial risk remains low.

Cash Flow

Cash generation is positive and improving, with TTM operating cash flow of ~$297M and free cash flow of ~$260M, and strong TTM free-cash-flow growth. However, cash conversion is less consistent across periods: operating cash flow relative to net income is below 1.0 in the most recent periods, and free cash flow declined sharply in 2024 before rebounding, indicating some working-capital/through-cycle volatility.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.64B	2.48B	2.02B	2.61B	2.21B	1.42B
Gross Profit	692.62M	649.67M	475.02M	808.04M	581.57M	282.08M
EBITDA	330.02M	310.45M	240.38M	563.90M	354.61M	132.92M
Net Income	213.57M	198.41M	146.70M	401.80M	248.04M	84.82M
Balance Sheet
Total Assets	2.11B	2.11B	1.92B	1.56B	1.23B	917.90M
Cash, Cash Equivalents and Short-Term Investments	659.76M	610.34M	495.06M	747.45M	435.41M	262.58M
Total Debt	119.11M	163.81M	154.70M	42.72M	59.06M	76.54M
Total Liabilities	522.09M	565.97M	500.97M	329.72M	409.51M	349.29M
Stockholders Equity	1.59B	1.54B	1.42B	1.23B	825.11M	568.61M
Cash Flow
Free Cash Flow	259.69M	190.32M	169.79M	363.98M	192.50M	145.88M
Operating Cash Flow	297.17M	240.86M	222.70M	416.23M	224.48M	153.90M
Investing Cash Flow	-56.46M	-46.16M	-485.68M	-61.18M	-31.97M	-56.81M
Financing Cash Flow	-169.26M	-73.04M	10.86M	-37.02M	-19.94M	-47.81M

Champion Homes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKY, the sentiment is Negative. The current price of 78.3 is below the 20-day moving average (MA) of 87.41, below the 50-day MA of 88.56, and above the 200-day MA of 77.04, indicating a neutral trend. The MACD of -3.27 indicates Positive momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 20.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKY.

Champion Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRBK	77 Outperform	$2.83B	8.76	17.70%	―	6.62%	-1.90%
SKY	74 Outperform	$4.33B	22.24	13.58%	―	12.14%	48.68%
MHO	71 Outperform	$3.32B	8.49	12.99%	―	4.77%	-9.30%
TPH	69 Neutral	$3.95B	11.14	7.29%	―	-16.60%	-29.85%
CVCO	66 Neutral	$3.93B	26.87	17.14%	―	15.81%	37.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MTH	60 Neutral	$4.29B	10.29	8.65%	2.62%	-6.06%	-32.39%

Champion Homes Corporate Events

Champion Homes Names New Chief Accounting Officer

On March 2, 2026, Champion Homes, Inc. appointed Timothy Kingston as Chief Accounting Officer and principal accounting officer, effective March 9, 2026, while long‑time executive Timothy Burkhardt will step down from the principal accounting officer role but remain Vice President and Controller to support a transition until his retirement on May 31, 2026. Kingston, a 48‑year‑old Certified Public Accountant with extensive experience in accounting and finance at Kellanova, formerly Kellogg, and Zimmer Biomet, will receive a $365,000 base salary and, starting in fiscal 2027, become eligible for performance‑linked cash bonuses and long‑term incentive awards, signaling Champion Homes’ emphasis on strengthening its financial governance and leadership as it plans for continuity in its accounting function.

The company noted that Kingston’s selection was not the result of any special arrangements with other parties, and that he has no family relationships with directors or executive officers or material related‑party transactions, underscoring a standard, governance‑aligned appointment process. The planned and orderly shift in accounting leadership is designed to ensure stability in financial reporting and regulatory compliance at a time when Champion Homes continues to compete in a highly regulated and cost‑sensitive housing market.

The most recent analyst rating on (SKY) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Champion Homes stock, see the SKY Stock Forecast page.

Champion Homes Posts Mixed Q3 Results, Expands Buyback

Champion Homes reported third-quarter fiscal 2026 results on February 3, 2026, showing modest top-line growth but softer profitability for the period ended December 27, 2025. Net sales rose 1.8% year on year to $656.6 million, driven in part by a 4.6% increase in average selling price per U.S. home to $99,300 and stronger Canadian factory-built home volumes, even as U.S. homes sold fell 2.6% and backlog declined 15.1% from the prior quarter. Higher materials costs and lower volume absorption weighed on margins, with gross margin contracting 190 basis points to 26.2%, net income falling 11.7% to $54.3 million, and adjusted EBITDA down 10.2% to $74.8 million, while adjusted EBITDA margin slid to 11.4%. The company generated $100 million in operating cash flow, ended the quarter with $659.8 million in cash and cash equivalents, and repurchased $50 million of stock, after which the board moved on January 29, 2026 to increase the share repurchase authorization to restore available capacity to $150 million, underscoring continued balance-sheet strength and an ongoing commitment to returning capital to shareholders despite a challenging demand environment and margin pressure.

The most recent analyst rating on (SKY) stock is a Buy with a $89.00 price target. To see the full list of analyst forecasts on Champion Homes stock, see the SKY Stock Forecast page.