Champion Homes (SKY)
NYSE:SKY
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Champion Homes
(NYSE:SKY)
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Rating:74Outperform
Price Target:
$82.00
▲(3.43% Upside)
Action:ReiteratedDate: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 and low leverage
Very low leverage and a substantial equity base provide durable financial flexibility: supports investment, M&A, and buybacks while absorbing housing-cycle volatility and input-cost shocks, reducing refinancing risk and enabling steadier execution through 2–6 month horizons.
Negative Factors
Margin compression and normalized profitability
Substantial gap from 2023 peak margins reflects structural mix, cost and volume pressures. If higher materials or lower absorption persist, operating leverage will be limited and normalized margins may cap long-term profitability and free cash flow generation amid cyclical demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and low leverage
Very low leverage and a substantial equity base provide durable financial flexibility: supports investment, M&A, and buybacks while absorbing housing-cycle volatility and input-cost shocks, reducing refinancing risk and enabling steadier execution through 2–6 month horizons.
Read all positive factors
Champion Homes (SKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38B
Dividend YieldN/A
Average Volume (3M)570.05K
Price to Earnings (P/E)22.2
Beta (1Y)0.92
Revenue Growth12.14%
EPS Growth48.68%
CountryUS
Employees9,000
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.96
Shares Outstanding55,302,020
10 Day Avg. Volume488,326
30 Day Avg. Volume570,053
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)3.51
Price to Sales (P/S)2.18
P/FCF Ratio28.45
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue1.47
Enterprise Value/Gross Profit5.61
Enterprise Value/Ebitda11.78
Forecast
1Y Price Target
$100.67Price Target Upside26.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.72
Revenue Forecast (FY)$2.74B
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 bu...
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 del...
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 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational and strategic positives (brand recognition, product innovation, modest revenue growth, strong cash generation, expected proceeds from ECN sale, and active share repurchases) were offset by declining profitability, margin compression, lower unit volumes in key channels, a reduced backlog and below‑optimal capacity utilization. Management provided cautious yet constructive guidance for Q4 (low-single-digit revenue growth and gross margin of 25%–26%) and emphasized execution, channel management and readiness for the spring selling season.Positive Updates
Modest Revenue Growth
Third quarter net sales increased 2% year-over-year to $657 million, with U.S. factory-built housing revenue also up 2%.
Negative Updates
Gross Margin Compression
Consolidated gross profit decreased 5% to $172 million and gross margin compressed by 190 basis points year-over-year to 26.2%.
Read all updates
Q3-2026 Updates
Positive
Negative
Modest Revenue Growth
Third quarter net sales increased 2% year-over-year to $657 million, with U.S. factory-built housing revenue also up 2%.
Read all positive updates
Company Guidance
Guidance: management expects fiscal Q4 revenue to be up low single digits year‑over‑year with consolidated gross margin of about 25%–26%, while warning of potential quarter‑to‑quarter variability from weather and delivery timing; they also expect a modest increase in fixed SG&A for Q4 due to trade‑show participation, continued strong operating cash flow, and ongoing capital‑allocation review. For context, Q3 results were $657M of net sales (≈6,485 homes sold / 6,270 U.S. homes), U.S. ASP ~$99,300 (+5% y/y), consolidated gross profit $172M (26.2% margin), adjusted EBITDA $75M (11.4%), net income $54M ($0.97 diluted EPS), manufacturing backlog down 15% to $266M with a 7‑week average lead time, manufacturing utilization ~59%, cash ~$660M, operating cash flow ~$100M in the quarter, $50M of share repurchases year‑to‑date and a refreshed $150M buyback authorization.Champion Homes Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
73
Positive
| 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
Positive
79.28
Price Trends
82.94
Negative
84.89
Negative
77.92
Positive
Market Momentum
-2.08
Negative
52.57
Neutral
62.96
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 79.28 is above the 20-day moving average (MA) of 75.39, below the 50-day MA of 82.94, and above the 200-day MA of 77.92, indicating a neutral trend. The MACD of -2.08 indicates Negative momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKY.
Champion Homes Risk Analysis
Champion Homes disclosed 37 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.99B | 8.76 | 17.70% | ― | 6.62% | -1.90% | |
74 Outperform | $4.38B | 22.24 | 13.58% | ― | 12.14% | 48.68% | |
71 Outperform | $3.22B | 8.49 | 12.99% | ― | 4.77% | -9.30% | |
71 Outperform | $3.98B | 11.14 | 7.29% | ― | -16.60% | -29.85% | |
66 Neutral | $4.03B | 26.87 | 17.14% | ― | 15.81% | 37.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.45B | 10.29 | 8.65% | 2.62% | -6.06% | -32.39% |
* Consumer Cyclical Sector Average
SKY
Champion Homes
79.28
-3.49
-4.22%
CVCO
Cavco Industries
519.67
52.68
11.28%
MHO
M/I Homes
125.11
18.83
17.72%
MTH
Meritage
66.69
5.11
8.30%
TPH
Tri Pointe
46.78
17.68
60.76%
GRBK
Green Brick Partners
69.23
14.19
25.78%
Champion Homes Corporate Events
Executive/Board Changes
Champion Homes Names New Chief Accounting Officer
Positive
Mar 3, 2026
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Champion Homes Posts Mixed Q3 Results, Expands Buyback
Neutral
Feb 3, 2026
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 ...
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.