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Champion Homes
(NYSE:SKY)
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Rating:68Neutral
Price Target:
$83.00
▼(-7.02% Downside)
Action:Downgraded
Date:10/06/26
The score is driven primarily by strong financial durability (very low leverage and solid recent revenue growth) and a constructive earnings update (backlog expansion, improving utilization, and ongoing buybacks). These are tempered by cooling margins and weaker recent free-cash-flow trend, mixed technical momentum, and a relatively full P/E multiple with no dividend yield provided.
Positive Factors
Very Low Leverage
TTM debt-to-equity near 0.01 gives Champion substantial financial flexibility in a cyclical housing market. Low leverage reduces interest and refinancing exposure, preserves capacity to fund stores, acquisitions or operations, and improves resilience when demand or margins weaken.
Negative Factors
Material Cost Margin Pressure
Elevated material costs and an estimated 200-basis-point Q2 gross-margin headwind could limit profit conversion even as revenue grows. Persistent input pressure would make pricing actions harder to translate into earnings and leave results more exposed to product and channel mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
TTM debt-to-equity near 0.01 gives Champion substantial financial flexibility in a cyclical housing market. Low leverage reduces interest and refinancing exposure, preserves capacity to fund stores, acquisitions or operations, and improves resilience when demand or margins weaken.
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
$4.11B
Dividend Yield3.74%
Average Volume (3M)566.58K
Price to Earnings (P/E)22.0
Beta (1Y)0.84
Revenue Growth4.52%
EPS Growth-9.26%
CountryUS
Employees9,300
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)3.44
Shares Outstanding54,280,132
10 Day Avg. Volume606,657
30 Day Avg. Volume566,579
Financial Highlights & Ratios
PEG Ratio2.96
Price to Book (P/B)2.59
Price to Sales (P/S)1.53
P/FCF Ratio15.10
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit6.11
Enterprise Value/Ebitda13.65
Forecast
1Y Price Target
$104.74Price Target Upside17.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)3.45
Revenue Forecast (FY)$2.79B
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 and selling factory-built homes (manufactured and modular). Revenue is generated when homes are sold through its retail distribution network (company-operated retail centers) and through indepe...
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 | 693.75M | 704.32M | 649.67M | 475.02M | 808.04M | 581.57M |
| EBITDA | 310.50M | 325.91M | 307.75M | 240.38M | 563.90M | 354.61M |
| Net Income | 191.37M | 206.90M | 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 | 123.17M | 109.09M | 163.81M | 154.70M | 42.72M | 59.06M |
| Total Liabilities | 574.99M | 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
Negative
89.27
Price Trends
85.47
Negative
84.13
Negative
82.73
Negative
Market Momentum
-2.47
Positive
46.14
Neutral
43.86
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 89.27 is above the 20-day moving average (MA) of 81.69, above the 50-day MA of 85.47, and above the 200-day MA of 82.73, indicating a bearish trend. The MACD of -2.47 indicates Positive momentum. The RSI at 46.14 is Neutral, neither overbought nor oversold. The STOCH value of 43.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $645.71M | 12.67 | 9.53% | ― | -2.62% | -6.08% | |
74 Outperform | $3.99B | 22.20 | 16.51% | ― | 9.69% | -0.39% | |
68 Neutral | $4.11B | 22.01 | 12.11% | 3.74% | 4.52% | -9.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $1.00B | 13.97 | 3.15% | ― | -16.52% | -57.00% | |
53 Neutral | $508.28M | 14.00 | 7.82% | ― | -1.19% | -55.97% |
* Consumer Cyclical Sector Average
SKY
Champion Homes
79.72
2.72
3.53%
CVCO
Cavco Industries
547.44
-45.82
-7.72%
LGIH
LGI Homes
42.77
-3.15
-6.86%
LEGH
Legacy Housing
28.31
4.15
17.18%
SDHC
Smith Douglas Homes Corp. Class A
10.14
-7.29
-41.82%
BXBL
BOXABL Inc
2.95
-7.07
-70.56%
Champion Homes Corporate Events
Business Operations and StrategyM&A Transactions
Champion Homes to Acquire Timberline Homes Retail Assets
Positive
Oct 5, 2026
On October 5, 2026, Champion Homes announced a definitive agreement to acquire the assets of Timberline Homes, Inc., adding nine manufactured and modular home retail locations in Alabama, Mississippi and Florida. The Timberline outlets closely mat...
Business Operations and StrategyExecutive/Board Changes
Champion Homes strengthens board with new independent director
Positive
Aug 26, 2026
On August 24, 2026, Champion Homes’ Board of Directors expanded its size from six to seven members and elected industrial executive Michael R. Haack as an independent director, with his term running through the 2027 annual meeting. Haack, wh...
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...
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.