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Champion Homes
(NYSE:SKY)
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Rating:71Outperform
Price Target:
$91.00
▲(11.48% Upside)
Action:Reiterated
Date:08/05/26
SKY’s score is driven primarily by strong financial quality—especially very low leverage and solid profitability—with supportive (but normalized) growth. The latest earnings call adds a constructive outlook via rising backlog, strong cash position, and ongoing buybacks, tempered by near-term margin and cost pressures. The main offsets are muted technical momentum and a valuation multiple (~21.75x) that is not particularly discounted for a cyclical business.
Positive Factors
Balance-sheet strength
An exceptionally conservative balance sheet (debt-to-equity near 0.01 and substantial cash) materially lowers financial risk in a cyclical housing industry. This durability enables buybacks, selective M&A or capex, and provides a cushion through demand downturns without forcing distress-driven asset sales.
Negative Factors
Margin normalization
Profitability has normalized well below prior-cycle peaks, leaving a thinner buffer against cost shocks and cyclical downturns. Lower margins reduce retained earnings for reinvestment and make reported earnings and free cash generation more sensitive to input-cost swings and channel mix shifts over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
An exceptionally conservative balance sheet (debt-to-equity near 0.01 and substantial cash) materially lowers financial risk in a cyclical housing industry. This durability enables buybacks, selective M&A or capex, and provides a cushion through demand downturns without forcing distress-driven asset sales.
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
$4.37B
Dividend YieldN/A
Average Volume (3M)749.38K
Price to Earnings (P/E)21.8
Beta (1Y)0.83
Revenue Growth7.26%
EPS Growth6.61%
CountryUS
Employees9,300
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)3.40
Shares Outstanding54,894,280
10 Day Avg. Volume588,538
30 Day Avg. Volume749,375
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$95.67Price Target Upside17.20% 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:Aug 04, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed solid execution and cautious optimism: modest top-line growth, strong backlog expansion, improved utilization, healthy cash generation and strategic progress (Homes Direct acquisition and favorable regulatory developments). These positives were balanced against short-term pressures—elevated material costs, channel-driven ASP mix headwinds, a notable Canada volume decline and a higher effective tax rate. Management provided constructive Q2 guidance while emphasizing that some benefits (Homes Direct, HUD rule changes) will ramp over time.Positive Updates
Revenue Growth
Net sales increased 1.3% year-over-year to $710.2 million for Q1 fiscal 2027, slightly ahead of expectations.
Negative Updates
Canada Volume Decline
Canadian homes sold declined to 185 from 250 in the prior-year quarter, a decrease of approximately 26%, partly due to weather-related disruptions.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth
Net sales increased 1.3% year-over-year to $710.2 million for Q1 fiscal 2027, slightly ahead of expectations.
Read all positive updates
Company Guidance
Champion guided Q2 fiscal 2027 to organic revenue growth of mid‑single‑digits (Homes Direct excluded; Homes Direct historically ~$70M of sales and 11 stores and will be modestly additive), with near‑term adjusted gross margin of 25%–26% and adjusted SG&A of 16%–17% of sales; management expects pricing actions to build in Q2 and reiterated a fiscal‑year effective tax rate of ~25% (ENERGY STAR credits expired). Key context for the guide: Q1 net sales were $710.2M, adjusted gross profit $179M (25.2% margin), adjusted EBITDA $73.6M (10.4% margin), manufacturing utilization was 62%, backlog rose to $421.8M with lead time ~9 weeks (target 4–12 weeks), cash & cash equivalents were $784.7M, operating cash flow $72.5M, and the company repurchased $50M of stock in Q1 with the Board refreshing buyback capacity to $150M.Champion Homes Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.67B | 2.66B | 2.48B | 2.02B | 2.61B | 2.21B |
| Gross Profit | 690.75M | 704.32M | 649.67M | 475.02M | 808.04M | 581.57M |
| EBITDA | 286.04M | 275.76M | 310.45M | 240.38M | 563.90M | 354.61M |
| Net Income | 191.37M | 214.20M | 198.41M | 146.70M | 401.80M | 248.04M |
Balance Sheet | ||||||
| Total Assets | 2.15B | 2.13B | 2.11B | 1.92B | 1.56B | 1.23B |
| Cash, Cash Equivalents and Short-Term Investments | 784.71M | 638.26M | 610.34M | 495.06M | 747.45M | 435.41M |
| Total Debt | 14.44M | 109.09M | 163.81M | 154.70M | 42.72M | 59.06M |
| Total Liabilities | 103.88M | 558.61M | 565.97M | 500.97M | 329.72M | 409.51M |
| Stockholders Equity | 1.57B | 1.57B | 1.54B | 1.42B | 1.23B | 825.11M |
Cash Flow | ||||||
| Free Cash Flow | 265.99M | 269.75M | 190.32M | 169.79M | 363.98M | 192.50M |
| Operating Cash Flow | 301.05M | 303.87M | 240.86M | 222.70M | 416.23M | 224.48M |
| Investing Cash Flow | 102.65M | -57.20M | -46.16M | -485.68M | -61.18M | -31.97M |
| Financing Cash Flow | -219.18M | -222.22M | -73.04M | 10.86M | -37.02M | -19.94M |
Champion Homes Technical Analysis
Positive
81.63
Price Trends
80.33
Positive
77.72
Positive
81.23
Positive
Market Momentum
-0.05
Positive
52.06
Neutral
41.94
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 81.63 is below the 20-day moving average (MA) of 81.71, above the 50-day MA of 80.33, and above the 200-day MA of 81.23, indicating a bullish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 41.94 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 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.22B | 23.53 | 16.51% | ― | 9.69% | -0.39% | |
73 Outperform | $3.04B | 10.60 | 15.42% | ― | -8.66% | -14.97% | |
71 Outperform | $4.37B | 21.75 | 12.11% | ― | 7.26% | 6.61% | |
70 Outperform | $3.74B | 12.04 | 9.97% | ― | -4.94% | -35.08% | |
64 Neutral | $4.68B | 14.63 | 6.38% | 2.48% | -13.27% | -45.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
SKY
Champion Homes
82.36
13.21
19.10%
CVCO
Cavco Industries
566.56
115.86
25.71%
MHO
M/I Homes
150.12
20.63
15.93%
MTH
Meritage
74.53
4.43
6.32%
GRBK
Green Brick Partners
72.05
6.68
10.22%
Champion Homes Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Champion Homes Reports Modest Growth, Expands Share Buyback
Positive
Aug 4, 2026
On August 4, 2026, Champion Homes reported first-quarter fiscal 2027 results for the period ended June 27, 2026, showing modest top-line growth in a challenging housing environment. Net sales rose 1.3% to $710.2 million, with U.S. homes sold up 1....
Executive/Board ChangesShareholder Meetings
Champion Homes Shareholders Reaffirm Board, Pay and Auditor
Positive
Aug 3, 2026
At its annual meeting on July 30, 2026, Champion Homes, Inc. shareholders elected all board nominees, including Michael Berman, Mary Fedewa, Erin Mulligan Helgren, Tim Larson, Nikul Patel and Gary Robinette, to serve until the next shareholder mee...
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...
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.