📊 SKY Key Takeaways
Is Champion Homes, Inc. (SKY) a Good Investment?
Champion Homes demonstrates fortress-like financial health with minimal leverage (0.02x D/E), exceptional liquidity, and robust free cash flow generation ($269.7M), positioning it well to weather industry cyclicality. However, net income declined 3.4% YoY despite 7.3% revenue growth, signaling margin compression that warrants monitoring of operational efficiency and cost pressures in the competitive mobile homes sector.
Champion Homes, Inc. Key Strengths (SKY)
- Exceptional balance sheet strength with minimal debt ($23.8M LT debt) and fortress cash position ($638.3M), providing substantial financial flexibility
- Strong free cash flow generation ($269.7M, 10.1% FCF margin) with healthy operating cash flow ($303.9M) covering capex 8.9x over
- Solid profitability across all margins: 26.4% gross, 9.5% operating, 7.8% net with ROE 13.2% and ROA 9.7%
- Revenue growth of 7.3% YoY demonstrates market demand in mobile homes sector
- Exceptional liquidity metrics: 2.48x current ratio, 1.69x quick ratio, 33.4x interest coverage ratio eliminates financial distress risk
SKY Stock Risks: Champion Homes, Inc. Investment Risks
- Margin compression deteriorating: net income down 3.4% YoY while revenue up 7.3%, indicating cost pressures or operational inefficiencies requiring investigation
- EPS growth (+7.0%) driven by share buybacks masking underlying earnings decline, suggesting earnings growth not sustainable through operational means
- Mobile homes industry is cyclical and sensitive to residential construction cycles, interest rate environment, and consumer credit availability
- Significant insider activity (19 Form 4 filings in 90 days) warrants scrutiny of insider sentiment and potential offsetting conflicts
Key Metrics to Watch
- Gross margin trend - any further compression indicates structural cost challenges or pricing pressure in competitive landscape
- Operating margin and cost structure - critical to determine if margin decline is temporary or structural
- Free cash flow sustainability - monitor if FCF generation can be maintained amid profitability headwinds
- Debt utilization - assess whether company deploys fortress balance sheet for acquisitions or shareholder returns versus organic reinvestment
Champion Homes, Inc. (SKY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.48x current ratio provides a solid financial cushion.
SKY Profit Margin, ROE & Profitability Analysis
SKY vs Market Sector: How Champion Homes, Inc. Compares
How Champion Homes, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Champion Homes, Inc. Stock Overvalued? SKY Valuation Analysis 2026
Based on fundamental analysis, Champion Homes, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Champion Homes, Inc. Balance Sheet: SKY Debt, Cash & Liquidity
SKY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Champion Homes, Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.53 reflects profitable operations.
SKY Revenue Growth, EPS Growth & YoY Performance
SKY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $644.9M | $54.3M | $0.97 |
| Q2 2026 | $616.9M | $54.7M | $0.94 |
| Q1 2026 | $627.8M | $45.8M | $0.79 |
| Q3 2025 | $559.5M | $47.0M | $0.81 |
| Q2 2025 | $464.2M | $45.7M | $0.79 |
| Q1 2025 | $464.8M | $45.8M | $0.79 |
| Q3 2023 | $534.7M | $47.0M | $0.81 |
| Q2 2023 | $464.2M | $45.7M | $0.79 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Champion Homes, Inc. Dividends, Buybacks & Capital Allocation
SKY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Champion Homes, Inc. (CIK: 0000090896)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SKY
What is the AI rating for SKY?
Champion Homes, Inc. (SKY) has an AI grade of A with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SKY's key strengths?
Claude: Exceptional balance sheet strength with minimal debt ($23.8M LT debt) and fortress cash position ($638.3M), providing substantial financial flexibility. Strong free cash flow generation ($269.7M, 10.1% FCF margin) with healthy operating cash flow ($303.9M) covering capex 8.9x over.
What are the risks of investing in SKY?
Claude: Margin compression deteriorating: net income down 3.4% YoY while revenue up 7.3%, indicating cost pressures or operational inefficiencies requiring investigation. EPS growth (+7.0%) driven by share buybacks masking underlying earnings decline, suggesting earnings growth not sustainable through operational means.
What is SKY's revenue and growth?
Champion Homes, Inc. reported revenue of $2.7B.
Does SKY pay dividends?
Champion Homes, Inc. pays dividends, with $1.5M distributed to shareholders in the trailing twelve months.
Where can I find SKY SEC filings?
Official SEC filings for Champion Homes, Inc. (CIK: 0000090896) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SKY's EPS?
Champion Homes, Inc. has a diluted EPS of $3.66.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SKY's fundamental grade?
Based on our AI fundamental analysis in May 2026, Champion Homes, Inc. has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SKY stock overvalued or undervalued?
Valuation metrics for SKY: ROE of 13.2% (sector avg: 15%), net margin of 7.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SKY's AI grade for 2026?
Our dual AI analysis gives Champion Homes, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SKY's free cash flow?
Champion Homes, Inc.'s operating cash flow is $303.9M, with capital expenditures of $34.1M. FCF margin is 10.1%.
How does SKY compare to other Market stocks?
Vs Default sector averages: Net margin 7.8% (avg: 12%), ROE 13.2% (avg: 15%), current ratio 2.48 (avg: 1.8).