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Champion Homes
(NYSE:SKY)
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Rating:73Outperform
Price Target:
$93.00
▲(14.35% Upside)
Action:Reiterated
Date:06/03/26
The score is driven primarily by strong financial quality (low leverage and strong free cash flow). Offsetting this, the technical picture is weak versus key moving averages and management’s near-term outlook is cautious due to input-cost inflation and margin pressure, while valuation looks reasonable but not a clear bargain and offers no dividend support.
Positive Factors
Conservative balance sheet
Champion's extremely low leverage and large equity base provide durable financial flexibility. This reduces refinancing and liquidity risk, enables opportunistic M&A, steady buybacks, and funding for dealer/customer financing or capex without stressing cash flow during downturns.
Negative Factors
Input cost inflation
Rising commodity and component costs compress gross margins in a business with limited short-term pricing power for affordable housing. Management's mitigation lags inflation, so margin recovery depends on sustained cost normalization or structural efficiency gains over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Champion's extremely low leverage and large equity base provide durable financial flexibility. This reduces refinancing and liquidity risk, enables opportunistic M&A, steady buybacks, and funding for dealer/customer financing or capex without stressing cash flow during downturns.
Read all positive factors
Champion Homes Key Performance Indicators (KPIs)
Any
EBITDA by Segment
Breaks down earnings before interest, taxes, depreciation, and amortization by segment, offering a view of profitability and operational efficiency across different areas of the business.
Breaks down earnings before interest, taxes, depreciation, and amortization by segment, offering a view of profitability and operational efficiency across different areas of the business.
Data provided by:
The Fly
The FlyChampion Homes (SKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.46B
Dividend YieldN/A
Average Volume (3M)800.03K
Price to Earnings (P/E)22.5
Beta (1Y)0.82
Revenue Growth7.26%
EPS Growth6.61%
CountryUS
Employees9,000
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)3.66
Shares Outstanding54,894,280
10 Day Avg. Volume767,232
30 Day Avg. Volume800,031
Financial Highlights & Ratios
PEG Ratio3.26
Price to Book (P/B)2.61
Price to Sales (P/S)1.54
P/FCF Ratio15.19
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit5.58
Enterprise Value/Ebitda12.05
Forecast
1Y Price Target
$93.00Price Target Upside14.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)3.4
Revenue Forecast (FY)$2.75B
Champion Homes Business Overview & Revenue Model
Company Description
Champion Homes, Inc. manufactures and sells prefabricated housing units throughout North America. Its diverse product portfolio includes manufactured and modular homes, recreational park model vehicles, accessory dwelling units, and specialized mo...
How the Company Makes Money
Champion Homes primarily makes money by manufacturing factory-built housing and selling those units through multiple channels. The core revenue stream is the sale of manufactured homes and modular homes (including the associated home sections/modu...
Champion Homes Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented solid operational and financial accomplishments — record homes sold, Q4 revenue up 4.6%, stronger cash generation (+26.2% operating cash flow YoY), disciplined capital returns ($200M repurchased) and an accretive retail acquisition (Homes Direct) — alongside notable industry recognition and outperformance versus HUD shipment declines. Offsetting these positives are near-term margin pressures driven by rising input costs (lumber, OSB, steel, petroleum), a slightly lower utilization rate (59%), community channel softness in Q4, and a cautious Q1 FY27 revenue/margin guide that reflects consumer affordability challenges and inflation. Overall the company appears well-capitalized and strategically active but faces near-term inflation and mix headwinds to profitability.Positive Updates
Record Homes Sold
Champion reported a record 26,622 customers in fiscal 2026 (company statement), with U.S. homes sold for the full fiscal year reported as 25,718. This is the highest number of homes sold since the company went public in 2018.
Negative Updates
Input Cost Inflation Pressure
Company called out accelerating input cost inflation across forest products (lumber, OSB), steel and petroleum-related inputs. Management said mitigation actions (efficiency, value engineering, mix) lag the pace of inflation and are expected to pressure near-term margins.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Homes Sold
Champion reported a record 26,622 customers in fiscal 2026 (company statement), with U.S. homes sold for the full fiscal year reported as 25,718. This is the highest number of homes sold since the company went public in 2018.
Read all positive updates
Company Guidance
Champion guided fiscal Q1 2027 revenue to be approximately flat year‑over‑year, with near‑term adjusted gross margin of 24.5%–25.5% and adjusted SG&A of 16%–17% of sales; the outlook excludes the Homes Direct acquisition (11 stores, ~ $70M annualized revenue expected to close in Q2) and assumes the ENERGY STAR tax expiration (July 1) will raise the fiscal 2027 effective tax rate by ~3–4% versus fiscal 2026. For context, Q4 net sales were $621.3M (+4.6% YoY) with adjusted gross margin 25.7%, adjusted EBITDA margin 9%, adjusted net income $37.7M ($0.68/diluted share); manufacturing utilization was 59%, manufacturing orders +7% YoY, and backlog $316M (+$50M, +19% sequential) while HUD industry shipments were down ~9% (Champion down low single digits). The balance sheet and capital plan remain strong: cash $638.3M (3/28/26), FY2026 operating cash flow $303.9M (+26.2% YoY), CAD 189.1M proceeds from the ECN stake sale, $50M repurchased in Q4 ($200M for the year) and a refreshed $150M repurchase authorization.Champion Homes Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.66B | 2.48B | 2.02B | 2.61B | 2.21B |
| Gross Profit | 704.32M | 649.67M | 475.02M | 808.04M | 581.57M |
| EBITDA | 275.76M | 310.45M | 240.38M | 563.90M | 354.61M |
| Net Income | 214.20M | 198.41M | 146.70M | 401.80M | 248.04M |
Balance Sheet | |||||
| Total Assets | 2.13B | 2.11B | 1.92B | 1.56B | 1.23B |
| Cash, Cash Equivalents and Short-Term Investments | 638.26M | 610.34M | 495.06M | 747.45M | 435.41M |
| Total Debt | 109.09M | 163.81M | 154.70M | 42.72M | 59.06M |
| Total Liabilities | 558.61M | 565.97M | 500.97M | 329.72M | 409.51M |
| Stockholders Equity | 1.57B | 1.54B | 1.42B | 1.23B | 825.11M |
Cash Flow | |||||
| Free Cash Flow | 269.75M | 190.32M | 169.79M | 363.98M | 192.50M |
| Operating Cash Flow | 303.87M | 240.86M | 222.70M | 416.23M | 224.48M |
| Investing Cash Flow | -57.20M | -46.16M | -485.68M | -61.18M | -31.97M |
| Financing Cash Flow | -222.22M | -73.04M | 10.86M | -37.02M | -19.94M |
Champion Homes Technical Analysis
Neutral
81.33
Price Trends
76.65
Positive
79.13
Positive
80.36
Positive
Market Momentum
1.59
Positive
49.85
Neutral
25.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKY, the sentiment is Neutral. The current price of 81.33 is below the 20-day moving average (MA) of 83.39, above the 50-day MA of 76.65, and above the 200-day MA of 80.36, indicating a neutral trend. The MACD of 1.59 indicates Positive momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKY.
Champion Homes Risk Analysis
Champion Homes disclosed 36 risk factors in its most recent earnings report. Champion Homes reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Champion Homes Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.18B | 10.90 | 16.38% | ― | -6.58% | -18.09% | |
78 Outperform | $4.37B | 23.51 | 17.55% | ― | 11.36% | 15.51% | |
73 Outperform | $4.46B | 22.51 | 13.10% | ― | 7.26% | 6.61% | |
70 Outperform | $3.77B | 10.96 | 11.42% | ― | -1.83% | -30.18% | |
66 Neutral | $5.04B | 13.89 | 7.40% | 2.62% | -10.63% | -45.01% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
SKY
Champion Homes
81.23
15.21
23.04%
CVCO
Cavco Industries
567.26
114.76
25.36%
MHO
M/I Homes
147.32
27.73
23.19%
MTH
Meritage
75.50
4.76
6.72%
GRBK
Green Brick Partners
73.64
7.04
10.57%
Champion Homes Corporate Events
Business Operations and StrategyExecutive/Board Changes
Champion Homes realigns leadership as EVP Kimmell retires
Positive
Jun 3, 2026
On June 1, 2026, Champion Homes announced that Executive Vice President of Operations Joseph Kimmell will retire effective June 26, 2026, after nearly three decades with the company, and will remain as a consultant through August 31, 2026 to suppo...
Business Operations and StrategyExecutive/Board Changes
Champion Homes Announces Leadership Changes and Board Restructuring
Neutral
Jun 1, 2026
Champion Homes, Inc., a player in the housing industry focused on residential properties and related services, relies on its board of directors to set strategic direction and maintain strong governance standards. Its leadership structure is centra...
Business Operations and StrategyStock BuybackFinancial Disclosures
Champion Homes Posts Solid Fiscal 2026 Results, Signals Resilience
Positive
May 26, 2026
On May 26, 2026, Champion Homes reported fiscal 2026 results showing net sales up 7.3% to $2.7 billion and net income up 4.3% to $206.9 million for the year ended March 28, 2026, despite a volatile housing backdrop. Fourth-quarter net sales rose 4...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Champion Homes Gains Cash Boost From ECN Stake Sale
Positive
Apr 27, 2026
On April 24, 2026, an investor group led by Warburg Pincus completed its acquisition of ECN Capital Corp., which owns a 49% stake in Champion Financing LLC, the captive finance company formed with Champion Homes, Inc. At closing, ECN’s commo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.