Champion Homes (SKY) AI Stock Analysis

• Market Cap: $4.86B
• Dividend Yield: N/A
• Average Volume (3M): 662.39K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.98
• Revenue Growth: 12.14%
• EPS Growth: 48.68%
• Country: US
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 1.01
• Shares Outstanding: 55,858,284
• 10 Day Avg. Volume: 759,766
• 30 Day Avg. Volume: 662,395
• PEG Ratio: 0.80
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 28.45
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: 10.86
• 1Y Price Target: $92.33
• Price Target Upside: 6.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.71
• Revenue Forecast (FY): $2.64B

• Rating: 78 Outperform
• Price Target: $96.00 ▲(10.29% Upside)

Champion Homes' strong financial performance and strategic initiatives are the most significant factors driving the stock score. The company's robust balance sheet and efficient cash flow management provide a solid foundation. Technical indicators suggest a positive trend, while the valuation remains reasonable. The earnings call highlights growth opportunities and challenges, with legislative support potentially opening new markets.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Champion Homes' products and effective market strategies, supporting long-term business expansion.

Legislative Support

Legislative support for off-site built homes can open new market opportunities, enhancing Champion Homes' competitive position and growth potential.

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility, enabling Champion Homes to invest in growth initiatives and weather economic fluctuations.

Negative Factors

Community Channel Sales Decline

Declining sales in community channels may indicate challenges in maintaining market share in certain segments, potentially impacting future revenue growth.

Tariff Impacts

Rising tariffs can increase material costs, pressuring margins and potentially reducing profitability if costs cannot be passed onto consumers.

Variable Consumer Confidence

Variable consumer confidence can lead to unpredictable demand, affecting sales and revenue stability, especially in economically sensitive housing markets.

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 generates revenue through the sale of its modular and manufactured homes, which are marketed to both individual buyers and developers. The company primarily earns money from the direct sales of homes, as well as through financing options offered to customers, which can include loans and leasing agreements. Additionally, Champion Homes benefits from strategic partnerships with land developers and real estate agents, which help to expand its market reach and facilitate home sales. Other revenue streams may include accessory sales, such as home warranties and installation services, which enhance the overall customer experience and contribute to recurring income.

Champion Homes Financial Statement Overview

Summary

Champion Homes presents a strong financial position with consistent revenue growth, healthy profit margins, and a solid balance sheet with minimal leverage. The company demonstrates efficient cash flow management, supporting its operational and financial stability. While there are minor fluctuations in profit margins, the overall financial health remains robust, positioning the company well in the residential construction industry.

Income Statement

Champion Homes has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.64%. The company maintains healthy profit margins, with a gross profit margin of 27.10% and a net profit margin of 8.51% in the TTM period. However, there has been a slight decline in EBITDA margin from the previous annual report, indicating potential cost pressures.

Balance Sheet

The balance sheet is strong, with a very low debt-to-equity ratio of 0.015, indicating minimal leverage. The return on equity is robust at 14.21%, reflecting efficient use of equity capital. The equity ratio stands at 74.56%, showcasing a solid capital structure with significant equity backing.

Cash Flow

Champion Homes shows a positive cash flow trajectory, with a free cash flow growth rate of 11.62% in the TTM period. The operating cash flow to net income ratio is 0.58, suggesting good cash generation relative to net income. The free cash flow to net income ratio of 0.82 indicates strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.62B	2.48B	2.02B	2.61B	2.21B	1.42B
Gross Profit	698.55M	649.67M	475.02M	808.04M	581.57M	282.08M
EBITDA	342.04M	310.45M	240.38M	563.90M	354.61M	132.92M
Net Income	220.77M	198.41M	146.70M	401.80M	248.04M	84.82M
Balance Sheet
Total Assets	2.12B	2.11B	1.92B	1.56B	1.23B	917.90M
Cash, Cash Equivalents and Short-Term Investments	618.74M	610.34M	495.06M	747.45M	435.41M	262.58M
Total Debt	122.97M	130.86M	115.95M	12.43M	47.89M	65.06M
Total Liabilities	539.54M	565.97M	500.97M	329.72M	409.51M	349.29M
Stockholders Equity	1.58B	1.54B	1.42B	1.23B	825.11M	568.61M
Cash Flow
Free Cash Flow	203.06M	190.32M	169.79M	363.98M	192.50M	145.88M
Operating Cash Flow	246.58M	240.86M	222.70M	416.23M	224.48M	153.90M
Investing Cash Flow	-61.40M	-46.16M	-485.68M	-61.18M	-31.97M	-56.81M
Financing Cash Flow	-132.59M	-73.04M	10.86M	-37.02M	-19.94M	-47.81M

Champion Homes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.04
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 87.04 is above the 20-day moving average (MA) of 85.54, above the 50-day MA of 78.94, and above the 200-day MA of 77.01, indicating a bullish trend. The MACD of 2.20 indicates Positive momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 63.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKY.

Champion Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVCO	81 Outperform	$4.72B	24.85	18.50%	―	15.81%	37.89%
SKY	78 Outperform	$4.86B	22.65	14.37%	―	12.14%	48.68%
MHO	75 Outperform	$3.34B	7.49	15.76%	―	4.77%	-9.30%
GRBK	73 Outperform	$2.79B	8.43	20.37%	―	6.62%	-1.90%
TPH	73 Outperform	$2.76B	9.47	9.47%	―	-16.60%	-29.85%
MTH	69 Neutral	$4.69B	8.89	10.50%	2.58%	-6.06%	-32.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Champion Homes Corporate Events

Champion Homes Announces New CFO Appointment

Champion Homes announced the appointment of Dave McKinstray as Executive Vice President, Chief Financial Officer, and Treasurer, effective January 12, 2026, succeeding Laurie Hough who will retire after over 20 years with the company. McKinstray, with extensive experience in finance and accounting, previously served as CFO at WK Kellogg Co and held senior roles at Kellogg Company, bringing strategic insight and operational expertise to Champion Homes. The transition includes a comprehensive employment agreement for McKinstray and a transition agreement for Hough, ensuring continuity in leadership and operations as the company continues its growth trajectory.

Champion Homes Supports ECN Capital Acquisition by Warburg

Champion Homes, Inc. has announced that its joint venture partner, ECN Capital Corp., will be acquired by an investor group led by Warburg Pincus, with the transaction expected to close in the second quarter of 2026. As part of the transaction, Champion Canada Holdings Inc., a subsidiary of Champion Homes, has agreed to support and vote in favor of the acquisition, holding approximately 19.7% of ECN’s total voting power. Additionally, the company plans to extend the term of its joint venture with ECN and make an incremental $10 million investment into the venture over the next three years.

Champion Homes Chair Eddie Capel Resigns

On November 10, 2025, Eddie Capel resigned as Chair and a member of the Board of Directors of Champion Homes, Inc., effective immediately. His resignation was not due to any disagreement with the company or its management. The Board expressed gratitude for his service and contributions. Following his departure, the Board reduced its size to seven directors.

Champion Homes Expands Share Buyback Program

On October 30, 2025, Champion Homes‘ Board of Directors approved a $50 million increase to its share repurchase program, raising the total available amount to $150 million. The company reported strong financial results for the second quarter of fiscal 2026, ending September 27, 2025, with an 11% increase in net sales to $684.4 million and a 6.3% rise in net income to $58.2 million compared to the previous year. The growth was driven by higher sales through company-owned retail channels and the acquisition of Iseman Homes. The average selling price per U.S. home sold increased by 6.8% to $98,700, and the gross profit margin expanded by 50 basis points to 27.5%. The company also repurchased $50 million of shares under its share repurchase program during the quarter.