Champion Homes (SKY) AI Stock Analysis

• Market Cap: $5.27B
• Dividend Yield: N/A
• Average Volume (3M): 804.66K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.88
• 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: 724,341
• 30 Day Avg. Volume: 804,665
• 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: 0.88
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 6.68
• Enterprise Value/Ebitda: 14.03
• 1Y Price Target: $102.33
• Price Target Upside: 7.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.77
• Revenue Forecast (FY): $2.65B

• Rating: 71 Outperform
• Price Target: $105.00 ▲(10.24% Upside)
• Action: Upgraded Date: 02/05/26
• Date: Action: Upgraded 02/05/26

The score is driven primarily by strong financial quality—especially a very low-leverage balance sheet and solid profitability with a sharp TTM revenue rebound—tempered by uneven cash conversion and normalized margins versus prior peaks. Near-term momentum is weaker technically (below key moving averages with a negative MACD), while valuation appears only moderately attractive with no dividend support. The latest earnings call adds a mixed outlook: steady Q4 guidance and strong cash/buybacks, but pressured margins, shrinking backlog and low utilization.

Positive Factors

Very low leverage and conservative balance sheet

Extremely low net leverage and a large equity base provide durable financial flexibility: supports capital allocation (buybacks, capex, M&A), cushions demand downturns, lowers refinancing risk, and sustains investment in operations without pressuring solvency across 2–6 month cycles.

Consistent cash generation and improving free cash flow

Sustained positive operating cash flow and meaningful free cash flow create a durable funding source for reinvestment, buybacks, and liquidity needs. Reliable cash generation supports strategic actions and buffers the business through cyclical housing demand swings.

Strong brand, market position and product affordability focus

Clear brand leadership and product innovation around affordability drive durable demand advantages: recognized trust boosts retailer and community relationships, while lower-cost, competitive models expand addressable market and support steady volume even when pricier new-home segments slow.

Negative Factors

Gross and net margin compression

Material margin erosion versus prior peaks reflects weaker absorption of fixed costs, mix shifts and higher material costs. If sustained, compressed margins reduce return on invested capital, limit reinvestment and shareholder distributions, and heighten sensitivity to input-cost swings.

Lower backlog and suboptimal plant utilization

Declining backlog and ~59% utilization indicate persistent demand weakness and underused capacity. This undermines operating leverage, drives higher per-unit fixed costs, and lengthens the time needed to restore margins—risking multi-quarter earnings pressure if orders don't reaccelerate.

Uneven cash conversion and working-capital volatility

Inconsistent conversion of earnings to cash signals working-capital swings and execution timing risks. Variable cash conversion complicates forecasting and capital allocation, may necessitate larger liquidity cushions, and can amplify earnings volatility across the housing cycle.

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

Strong TTM rebound in revenue (+44.5%) with solid profitability (gross margin ~26.6%, net margin ~8.4%) and a conservatively positioned balance sheet (debt-to-equity ~0.08). Cash flow is positive with improving free cash flow, but cash conversion has been uneven and margins remain well below 2023 peak levels, reflecting cyclicality.

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	130.86M	115.95M	12.43M	47.89M	65.06M
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: Positive
• Last Price: 95.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 95.25 is above the 20-day moving average (MA) of 88.46, above the 50-day MA of 89.03, and above the 200-day MA of 77.08, indicating a bullish trend. The MACD of 2.37 indicates Negative momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 76.82 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
GRBK	73 Outperform	$3.41B	10.29	20.37%	―	6.62%	-1.90%
TPH	73 Outperform	$3.92B	13.69	9.47%	―	-16.60%	-29.85%
SKY	71 Outperform	$5.27B	25.42	13.69%	―	12.14%	48.68%
MHO	71 Outperform	$3.66B	9.65	13.20%	―	4.77%	-9.30%
CVCO	66 Neutral	$4.58B	25.61	17.18%	―	15.81%	37.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MTH	60 Neutral	$5.18B	12.10	8.76%	2.62%	-6.06%	-32.39%

Champion Homes Corporate Events

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.

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.

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.