Champion Homes (SKY) AI Stock Analysis

• Market Cap: $4.32B
• Dividend Yield: N/A
• Average Volume (3M): 685.97K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.95
• Revenue Growth: 16.87%
• EPS Growth: 54.47%
• Country: US
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 1.19
• Shares Outstanding: 56,518,124
• 10 Day Avg. Volume: 542,707
• 30 Day Avg. Volume: 685,967
• PEG Ratio: 0.80
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 28.45
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $79.50
• Price Target Upside: 4.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $83.00 ▲(8.71% Upside)

Champion Homes' strong financial performance and robust balance sheet are key strengths, contributing significantly to the overall score. Technical indicators suggest potential short-term weakness, while valuation metrics indicate moderate pricing. The absence of a dividend yield is a minor drawback.

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 manufactured and modular homes, which are produced in various configurations and styles to meet market demand. The company has multiple revenue streams, including direct sales to consumers, partnerships with retailers, and contracts with developers for large-scale projects. Additionally, Champion Homes may earn income from financing options provided to customers, as well as from after-sales services such as warranties and maintenance plans. Strategic partnerships with suppliers and distributors enhance its market presence and facilitate competitive pricing, further contributing to its profitability.

Champion Homes Financial Statement Overview

Summary

Champion Homes shows strong financial health with consistent revenue growth and solid profitability metrics. The balance sheet is robust with low leverage, enhancing financial stability. However, the decline in free cash flow growth and slight pressure on profit margins warrant attention.

Income Statement

Champion Homes has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.96%. The gross profit margin is stable at 26.62%, and the net profit margin is healthy at 7.99%. However, there is a slight decline in margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.08, indicating prudent financial leverage. Return on equity is solid at 13.19%, reflecting efficient use of equity capital. The equity ratio stands at a robust level, suggesting financial stability.

Cash Flow

Operating cash flow is positive, but there is a decline in free cash flow growth rate by 3.94% TTM, which could indicate challenges in cash generation. The operating cash flow to net income ratio is moderate at 0.53, suggesting room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.56B	2.48B	2.02B	2.61B	2.21B	1.42B
Gross Profit	689.64M	664.02M	485.79M	818.68M	589.12M	287.69M
EBITDA	330.29M	307.75M	210.12M	545.01M	353.84M	126.46M
Net Income	217.89M	198.41M	146.70M	401.80M	248.04M	84.90M
Balance Sheet
Total Assets	2.15B	2.11B	1.92B	1.56B	1.23B	917.90M
Cash, Cash Equivalents and Short-Term Investments	605.33M	610.34M	495.06M	747.45M	435.41M	262.58M
Total Debt	127.79M	130.86M	154.70M	12.43M	47.89M	65.06M
Total Liabilities	578.77M	565.97M	500.97M	329.72M	409.51M	349.29M
Stockholders Equity	1.57B	1.54B	1.42B	1.23B	825.11M	568.61M
Cash Flow
Free Cash Flow	182.82M	190.32M	169.79M	363.98M	192.50M	145.88M
Operating Cash Flow	231.54M	240.86M	222.70M	416.23M	224.48M	153.90M
Investing Cash Flow	-70.94M	-46.16M	-485.68M	-61.18M	-31.97M	-56.81M
Financing Cash Flow	-104.30M	-73.04M	10.86M	-37.02M	-19.94M	-47.81M

Champion Homes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.35
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 76.35 is above the 20-day moving average (MA) of 75.50, above the 50-day MA of 72.67, and below the 200-day MA of 81.79, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 78.32 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
MHO	80 Outperform	$3.91B	8.13	17.56%	―	7.39%	-1.37%
CVCO	77 Outperform	$4.52B	24.73	17.90%	―	16.66%	34.61%
GRBK	77 Outperform	$3.37B	9.89	22.12%	―	13.87%	6.54%
TPH	76 Outperform	$3.03B	8.83	11.38%	―	-3.59%	-10.82%
MTH	72 Outperform	$5.32B	8.52	12.58%	2.23%	-3.72%	-23.00%
SKY	71 Outperform	$4.32B	20.33	14.39%	―	16.87%	54.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Champion Homes Corporate Events

Champion Homes Approves Special Equity Awards for Executives

On August 14, 2025, Champion Homes, Inc.’s Compensation Committee approved special equity awards in the form of restricted stock units to senior management to ensure business continuity in a challenging market. The awards, ranging from $1,000,000 to $1,750,000, aim to retain key executives by vesting over three years, reflecting the company’s strategy to maintain stability and leadership in the housing industry.

Champion Homes Expands Share Repurchase Program

Champion Homes announced its first quarter fiscal 2026 results, highlighting an 11.7% increase in net sales to $701.3 million and a 6.5% rise in U.S. homes sold. The company also reported a 41.3% increase in net income to $64.7 million, driven by higher sales and gross profit. The average selling price per U.S. home rose by 3.6% to $95,000, and the gross profit margin expanded by 90 basis points to 27.1%. Champion Homes completed the acquisition of Iseman Homes and repurchased $50 million in shares. The Board of Directors approved an additional $50 million increase to the share repurchase program on July 24, 2025, and the company amended its credit facility to extend through 2030, enhancing capacity for strategic priorities.

Champion Homes Secures $200 Million Credit Facility

On July 28, 2025, Champion Homes, Inc. and Champion Home Builders, Inc. entered into a Second Amended and Restated Credit Agreement with Wells Fargo Bank and other lenders, establishing a $200 million revolving credit facility. This agreement replaces the previous credit agreement and extends the maturity date to July 2030. The facility, which includes a $45 million letter of credit sub-facility, allows for varying interest rates based on the company’s consolidated total net leverage ratio and includes provisions for optional and mandatory prepayments. The credit facility is secured by a first priority security interest in most of the company’s assets and is guaranteed by the company and its subsidiaries. This financial move is expected to provide Champion Homes with enhanced financial flexibility for working capital, capital expenditures, and other corporate purposes, potentially impacting its market positioning and operational capabilities.

Champion Homes Shareholders Approve Key Decisions at Annual Meeting

At the 2025 Annual Meeting of Shareholders held on July 24, 2025, Champion Homes, Inc. shareholders elected directors, ratified Ernst & Young LLP as the independent auditor for the fiscal year ending March 28, 2026, and approved executive compensation. These decisions reflect shareholder confidence in the company’s leadership and strategic direction, potentially strengthening its market position and operational stability.