Champion Homes (SKY) AI Stock Analysis

• Market Cap: $3.58B
• Dividend Yield: N/A
• Average Volume (3M): 925.86K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.11
• Revenue Growth: 22.65%
• EPS Growth: 34.77%
• Country: US
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Residential Construction
• EPS (TTM): 0.65
• Shares Outstanding: 57,282,560
• 10 Day Avg. Volume: 892,169
• 30 Day Avg. Volume: 925,859
• PEG Ratio: 0.17
• Price to Book (P/B): 3.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.78
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 1.05
• 1Y Price Target: $79.67
• Price Target Upside: 27.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $70.00 ▲(11.86%Upside)

Champion Homes' stock is bolstered by strong financial performance and recent positive corporate events, including an expanded share repurchase program. However, technical analysis indicates potential downward pressure, and the absence of a dividend yield limits appeal for income investors. Despite these challenges, the company's strategic initiatives and robust financial health position it well for future growth.

Champion Homes Business Overview & Revenue Model

Company Description

Skyline Champion Corporation 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 generates revenue through the sale of manufactured and modular homes. The company designs, builds, and sells these homes through a combination of company-owned retail centers and a network of independent retailers. Key revenue streams include the direct sale of homes to consumers, partnerships with real estate developers for community developments, and collaborations with government programs focused on affordable housing. Additionally, Champion Homes may derive income from offering financing solutions to customers, thereby facilitating home purchases and broadening their customer base.

Champion Homes Financial Statement Overview

Summary

Skyline Champion presents a robust financial profile with strong profitability, a low-leverage balance sheet, and healthy cash generation. While growth in revenues has seen fluctuations, the company maintains high operational efficiency and good shareholder returns. Continued focus on cash flow management and monitoring revenue trends will be critical for sustaining its financial health.

Income Statement

Skyline Champion has shown strong revenue growth over the years, with a noticeable improvement in gross profit and net profit margins. The TTM data highlights a robust gross profit margin of 27.39% and a net profit margin of 9.23%. However, recent revenue decline from the peak in 2023 needs monitoring. EBITDA and EBIT margins are healthy, indicating good operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.02 in the TTM period, reflecting minimal leverage. An equity ratio of 75.05% demonstrates a solid equity base relative to total assets. The return on equity stands at 14.38%, showcasing decent profitability for shareholders. The company’s financial position is stable with significant liquidity.

Cash Flow

Skyline Champion's cash flow statement is positive, with consistent free cash flow generation. Despite a recent dip in free cash flow growth, the operating cash flow to net income ratio of 0.91 in the TTM is satisfactory. This indicates that the company is effectively converting its profits into cash. The free cash flow to net income ratio is strong, yet the declining trend should be watched.

Breakdown	TTM	Mar 2024	Jun 2023	Jun 2022	Jun 2021	Mar 2020
Income Statement
Total Revenue	2.38B	2.02B	2.61B	2.21B	1.42B	1.37B
Gross Profit	649.82M	485.79M	818.68M	589.12M	287.69M	278.98M
EBITDA	271.29M	210.12M	545.01M	353.84M	126.46M	107.54M
Net Income	219.81M	146.70M	401.80M	248.04M	84.90M	58.16M
Balance Sheet
Total Assets	2.04B	1.92B	1.56B	1.23B	917.90M	781.70M
Cash, Cash Equivalents and Short-Term Investments	581.75M	495.06M	747.45M	435.41M	262.58M	209.46M
Total Debt	112.89M	154.70M	12.43M	47.89M	65.06M	111.24M
Total Liabilities	509.17M	500.97M	329.72M	409.51M	349.29M	307.38M
Stockholders Equity	1.53B	1.42B	1.23B	825.11M	568.61M	474.31M
Cash Flow
Free Cash Flow	149.04M	169.79M	363.98M	192.50M	145.88M	61.35M
Operating Cash Flow	198.94M	222.70M	416.23M	224.48M	153.90M	76.74M
Investing Cash Flow	-46.27M	-485.68M	-61.18M	-31.97M	-56.81M	-14.09M
Financing Cash Flow	-58.92M	10.86M	-37.02M	-19.94M	-47.81M	21.57M

Champion Homes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 62.58 is below the 20-day moving average (MA) of 63.49, below the 50-day MA of 76.39, and below the 200-day MA of 90.47, indicating a bearish trend. The MACD of -4.26 indicates Negative momentum. The RSI at 36.77 is Neutral, neither overbought nor oversold. The STOCH value of 49.99 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
MHO	77 Outperform	$2.94B	5.88	19.02%	―	8.68%	8.39%
TMHC	77 Outperform	$6.15B	7.12	15.97%	―	12.19%	23.15%
CVCO	77 Outperform	$3.48B	20.73	16.30%	―	4.09%	3.14%
SKY	73 Outperform	$3.58B	18.32	13.38%	―	22.65%	34.77%
MTH	73 Outperform	$4.80B	6.76	14.58%	2.60%	-0.68%	-7.99%
KBH	68 Neutral	$3.71B	6.85	14.09%	1.92%	3.65%	-0.48%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.15%	1.66%	-24.52%

Champion Homes Corporate Events

Champion Homes Expands Share Repurchase Program

On May 30, 2025, Champion Homes announced a $50 million increase to its existing share repurchase program, raising the total capacity to $150 million. This move reflects the company’s confidence in its strategy and commitment to long-term shareholder value through careful capital allocation. The repurchases may occur via various methods, depending on factors such as stock price and market conditions. The program’s expansion underscores Champion Homes’ robust cash generation and strategic focus on enhancing shareholder returns.

The most recent analyst rating on (SKY) stock is a Hold with a $86.00 price target. To see the full list of analyst forecasts on Champion Homes stock, see the SKY Stock Forecast page.

Champion Homes Reports Strong Q4 2025 Financial Results

Champion Homes announced its financial results for the fourth quarter and full fiscal year 2025, showing significant growth in net sales and net income. For the fourth quarter, net sales increased by 10.7% to $593.9 million, driven by higher U.S. home sales and an increase in average selling prices. The company’s gross profit margin expanded significantly due to the absence of previous product liability costs. For the full fiscal year, net sales rose by 22.7% to $2.5 billion, with net income increasing by $51.7 million to $198.4 million. The company also announced an increase in its share repurchase program by an additional $20 million, reflecting strong operational performance and strategic investments in new products and services.

The most recent analyst rating on (SKY) stock is a Hold with a $86.00 price target. To see the full list of analyst forecasts on Champion Homes stock, see the SKY Stock Forecast page.