| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 54 | 22.7x | 17.8x | Around median | |
Growth | 19 | 4.5% | 7.1% | Bottom tier | |
Quality | 66 | 11.6% | 4.5% | Top tier | |
Safety | 91 | — | 2.6x | Top tier | |
Capital Return | 79 | — | 2.12% | Top tier | |
Momentum | 52 | 27.1% | 2.9% | Around median | |
Sentiment | 44 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Champion Homes (SKY) produces manufactured homes and off-site-built housing units, including HUD models, modular homes, multi-section models, and cabins. It generates revenue through a diversified network comprising independent dealers, company-owned retail stores, residential community operators, builders, and developers; the company-owned retail channel represented approximately 35% of consolidated sales in the first quarter of fiscal 2027, compared with 34% a year earlier. Following the closing of the Homes Direct acquisition on August 1, 2026, the network comprised 95 company-owned retail stores, including 11 Homes Direct stores in the western United States, with a strategic focus on expanding direct-to-consumer sales.
In the first quarter of fiscal 2027 ended June 27, 2026, net sales increased 1.3% year over year to $710.2 million, and gross profit according to EDGAR data was approximately $179.3 million, equivalent to a gross margin of about 25.2%, while net income was $49.2 million and earnings per share were $0.89. On an adjusted basis, the company recorded net income of $48.3 million and diluted earnings per share of $0.88, while adjusted earnings before interest, taxes, depreciation, and amortization were $73.6 million at a 10.4% margin. Champion sold 7,089 homes in the United States, an increase of 1.8%, while units sold in Canada declined to 185 homes from 250 due to weather-related disruptions.
In fiscal 2026, Champion Homes generated revenue of $2.7 billion, gross profit of $704.3 million, net income of $206.9 million, and earnings per share of $3.66. In the first quarter of fiscal 2027, manufacturing capacity utilization increased to 62% from 59% in the previous quarter, and operating cash flow reached $72.5 million. The company ended the quarter with cash and cash equivalents of $784.7 million, after benefiting from approximately C$189.1 million from the ECN transaction, and used part of that liquidity to fund the Homes Direct acquisition.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $107.67, within a range of $99 to $115, with a consensus Buy rating; the average is approximately 8.6% above the 52-week range high of $99.17, while the lowest target nearly matches that high. The stock's 52-week range is between $63.69 and $99.17, and the data does not include a valid price-to-earnings multiple for comparison, so the valuation case rests on continued backlog growth and improving margins versus the risks of material costs and weak affordability, with no target cuts or analyst downgrades within the provided context.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Net sales increased 1.3% to $710.2 million, and U.S. home sales increased 1.8% to 7,089 units. In contrast, HUD industry shipments declined by approximately 5% during the three months ended May 2026, indicating market share gains. The backlog also increased to $421.8 million from $302 million, and sales to independent dealers increased 4%.
Champion Homes closed the acquisition on August 1, 2026, and the company-owned retail network now comprises 95 stores, including 11 Homes Direct stores in the western United States. Homes Direct generated approximately $70 million in sales, but management did not include its contribution in second-quarter fiscal 2027 guidance due to the timing of the closing. The company expects the contribution to grow gradually as ten locations shift from other manufacturers' products to Champion products, while Champion was already the primary supplier to the location adjacent to the Chandler facility.
Gross profit according to EDGAR data was approximately $179.3 million on revenue of $710.2 million in the first quarter of fiscal 2027, representing a margin of about 25.2%. Management expects an adjusted gross margin of between 25% and 26% in the second quarter, as the company begins to benefit from pricing and improved efficiency. However, material costs remain elevated, and pricing actions typically lag input inflation, so margin pressure has not yet disappeared.
The 21st Century ROAD to Housing Act became effective on July 10, 2026, paving the way for the production of HUD homes without a permanent steel chassis. Champion believes this could make the homes' appearance more similar to traditional construction and expand the market among builders, developers, and municipalities, while it also continues producing homes with permanent chassis. However, management does not expect an impact in fiscal 2027 because HUD rules, engineering, transportation, installation, and local adoption require time, and previous HUD changes have taken a year or more.
Champion Homes ended the first quarter of fiscal 2027 with cash and cash equivalents of $784.7 million and generated operating cash flow of $72.5 million. It repurchased $50 million of shares during the quarter, and the board then restored the authorization to $150 million in July 2026. Since the program began in fiscal 2025, repurchases have totaled $330 million, equivalent to 8% of total shares outstanding.
The main operating risks are high interest rates, pressure on affordability, and material costs remaining at elevated levels. Some consumers are also shifting to entry-level models, and the strength of wholesale channels, with prices near $85 thousand compared with $140 thousand to $150 thousand in company-owned retail, could pressure the average selling price. In addition, Canadian sales declined to 185 units from 250, and the expiration of ENERGY STAR incentives on July 1, 2026 is expected to raise the effective tax rate in fiscal 2027 to approximately 25%.
