Valuation Analysis of Champion Homes Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy SKY?
Source: Yahoo Finance
- Stock Performance: Champion Homes closed at $82.42, with declines of 11.8% over the past week, 2.4% over the past month, 2.9% year-to-date, and 14.6% over the past year, indicating market concerns about its future performance that could affect investor confidence.
- Cash Flow Analysis: The company's latest free cash flow stands at $243.9 million, projected to grow to $246.45 million by 2028; however, the intrinsic value estimated by the discounted cash flow model is $79.58 per share, suggesting the current stock price is about 3.6% overvalued, reflecting cautious market sentiment.
- P/E Ratio Assessment: Champion Homes trades at a P/E of 21.34, significantly above the consumer durables industry average of 12.01 and peer average of 12.19, indicating high market expectations for future growth, but may prompt investors to reassess its valuation.
- Investor Sentiment: Broader economic factors such as interest rates, housing affordability, and capital allocation are leading investors to pay closer attention to pricing in the manufactured housing sector and Champion Homes' positioning, which may increase stock price volatility and impact the company's future financing capabilities.
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Analyst Views on SKY
Wall Street analysts forecast SKY stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 79.830
Low
86.00
Averages
95.67
High
101.00
Current: 79.830
Low
86.00
Averages
95.67
High
101.00
About SKY
Champion Homes, Inc. is a producer of factory-built housing in North America. Its segments include U.S. Factory-built Housing, which includes manufacturing and retail housing operations, and Canadian Factory-built Housing. The Company has a portfolio of manufactured and modular homes, accessory dwelling units (ADUs), park-models and modular buildings for the single-family, multifamily, and hospitality sectors. In addition to its core home-building business, the Company provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to manufactured housing and other industries from several dispatch locations across the United States. It builds homes under brand names in the factory-built housing industry, including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park, and Dutch Housing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Valuation Analysis of Champion Homes Stock
- Stock Performance: Champion Homes closed at $82.42, with declines of 11.8% over the past week, 2.4% over the past month, 2.9% year-to-date, and 14.6% over the past year, indicating market concerns about its future performance that could affect investor confidence.
- Cash Flow Analysis: The company's latest free cash flow stands at $243.9 million, projected to grow to $246.45 million by 2028; however, the intrinsic value estimated by the discounted cash flow model is $79.58 per share, suggesting the current stock price is about 3.6% overvalued, reflecting cautious market sentiment.
- P/E Ratio Assessment: Champion Homes trades at a P/E of 21.34, significantly above the consumer durables industry average of 12.01 and peer average of 12.19, indicating high market expectations for future growth, but may prompt investors to reassess its valuation.
- Investor Sentiment: Broader economic factors such as interest rates, housing affordability, and capital allocation are leading investors to pay closer attention to pricing in the manufactured housing sector and Champion Homes' positioning, which may increase stock price volatility and impact the company's future financing capabilities.
See More
Champion Homes Reports Strong Q3 2026 Earnings, Exceeds Expectations
- Strong Earnings Report: Champion Homes reported an adjusted EPS of $0.96 for Q3 2026, surpassing the consensus estimate of $0.84, demonstrating robust performance amid challenging market conditions.
- Revenue Growth: The company achieved revenue of $656.6 million, reflecting a 1.8% year-over-year increase and exceeding the consensus expectation of $647.1 million, indicating stable growth supported by strong home prices.
- Healthy Cash Flow: Champion Homes generated operating cash flow of $100 million during the quarter, finishing with $659.8 million in cash and cash equivalents, which increased by $41 million from the previous quarter, showcasing solid financial health.
- Buyback Program Refresh: The board updated the stock buyback program with a potential $150 million in repurchases, further enhancing market confidence in the company's future growth and reflecting management's recognition of its value.
See More
ParaFi Capital Staked 70 Million SKY Just 4 Hours Ago
Investment Details: ParaFi Capital has withdrawn a stake worth approximately $70 million in the cryptocurrency platform Sky, as reported by on-chain data analyst Yu Jin.
Financial Implications: The withdrawal is estimated to be around $5 million in U.S. dollars, indicating significant financial movements within the crypto investment landscape.
See More
The Small-Cap Comeback Could Be Beginning: Here Are Some Funds and Stocks to Consider.
- Small-company stocks gaining attention: Investors are increasingly focusing on small-company stocks as interest in artificial intelligence wanes.
- Market dynamics shifting: The shift in investor sentiment indicates a broader change in market dynamics, moving away from tech-heavy investments.
- Potential for growth: Small-company stocks are seen as having significant growth potential, attracting more capital as investors seek new opportunities.
- Economic implications: This trend may reflect changing economic conditions and investor strategies in response to market fluctuations.
See More
Champion Homes Wins Gold Award for Modular Home Design
- Award Recognition: Champion Homes has been awarded the Gold Award by the NAHB for its custom modular home, the Muncy, highlighting its exceptional design capabilities in the construction industry, which enhances brand image and attracts high-end clients.
- Design Features: The Muncy spans 1,370 square feet with one bedroom and two-and-a-half bathrooms, featuring an open concept layout combined with a luxurious kitchen, showcasing the aesthetics and functionality of modern modular construction to meet high-quality housing demands.
- Manufacturing Collaboration: This home was manufactured at Champion Homes' facility in Liverpool, Pennsylvania, in collaboration with River Valley Builders, demonstrating the company's strong production capabilities and collaborative network in modular construction.
- Industry Impact: Standing out among over 600 entries, the Muncy's recognition not only elevates Champion Homes' industry status but also sets a high standard for future modular home projects, driving the company towards continuous innovation and growth.
See More
Champion Homes Q3 2026 Earnings Call Insights
- Management Changes: CEO Tim Larson highlighted the appointment of new CFO Dave McKinstray, emphasizing the company's commitment to driving growth and operational execution in complex environments, while also acknowledging former CFO Laurie Hough's two decades of service, reflecting the importance of leadership continuity.
- Brand Recognition Boost: The Skyline Homes brand was named America's most trusted manufactured homebuilder by Lifestory Research for the sixth consecutive year, indicating success in brand building that is expected to further drive market demand and consumer trust.
- Financial Performance Overview: Third-quarter net sales increased by 2% to $657 million year-over-year, despite a 12% drop in net income to $54 million, reflecting challenges in the market environment and margin pressures, with management's cautious outlook indicating sensitivity to market fluctuations.
- Future Outlook: Management anticipates low single-digit revenue growth for the fourth quarter, with gross margins expected to be in the 25% to 26% range, despite challenges from cautious consumer sentiment and seasonal demand declines, indicating the company's pursuit of stable growth in an uncertain environment.
See More
Valuation Analysis of Champion Homes Stock
- Stock Performance: Champion Homes closed at $82.42, with declines of 11.8% over the past week, 2.4% over the past month, 2.9% year-to-date, and 14.6% over the past year, indicating market concerns about its future performance that could affect investor confidence.
- Cash Flow Analysis: The company's latest free cash flow stands at $243.9 million, projected to grow to $246.45 million by 2028; however, the intrinsic value estimated by the discounted cash flow model is $79.58 per share, suggesting the current stock price is about 3.6% overvalued, reflecting cautious market sentiment.
- P/E Ratio Assessment: Champion Homes trades at a P/E of 21.34, significantly above the consumer durables industry average of 12.01 and peer average of 12.19, indicating high market expectations for future growth, but may prompt investors to reassess its valuation.
- Investor Sentiment: Broader economic factors such as interest rates, housing affordability, and capital allocation are leading investors to pay closer attention to pricing in the manufactured housing sector and Champion Homes' positioning, which may increase stock price volatility and impact the company's future financing capabilities.
See More
Champion Homes Reports Strong Q3 2026 Earnings, Exceeds Expectations
- Strong Earnings Report: Champion Homes reported an adjusted EPS of $0.96 for Q3 2026, surpassing the consensus estimate of $0.84, demonstrating robust performance amid challenging market conditions.
- Revenue Growth: The company achieved revenue of $656.6 million, reflecting a 1.8% year-over-year increase and exceeding the consensus expectation of $647.1 million, indicating stable growth supported by strong home prices.
- Healthy Cash Flow: Champion Homes generated operating cash flow of $100 million during the quarter, finishing with $659.8 million in cash and cash equivalents, which increased by $41 million from the previous quarter, showcasing solid financial health.
- Buyback Program Refresh: The board updated the stock buyback program with a potential $150 million in repurchases, further enhancing market confidence in the company's future growth and reflecting management's recognition of its value.
See More
ParaFi Capital Staked 70 Million SKY Just 4 Hours Ago
Investment Details: ParaFi Capital has withdrawn a stake worth approximately $70 million in the cryptocurrency platform Sky, as reported by on-chain data analyst Yu Jin.
Financial Implications: The withdrawal is estimated to be around $5 million in U.S. dollars, indicating significant financial movements within the crypto investment landscape.
See More
The Small-Cap Comeback Could Be Beginning: Here Are Some Funds and Stocks to Consider.
- Small-company stocks gaining attention: Investors are increasingly focusing on small-company stocks as interest in artificial intelligence wanes.
- Market dynamics shifting: The shift in investor sentiment indicates a broader change in market dynamics, moving away from tech-heavy investments.
- Potential for growth: Small-company stocks are seen as having significant growth potential, attracting more capital as investors seek new opportunities.
- Economic implications: This trend may reflect changing economic conditions and investor strategies in response to market fluctuations.
See More
Champion Homes Wins Gold Award for Modular Home Design
- Award Recognition: Champion Homes has been awarded the Gold Award by the NAHB for its custom modular home, the Muncy, highlighting its exceptional design capabilities in the construction industry, which enhances brand image and attracts high-end clients.
- Design Features: The Muncy spans 1,370 square feet with one bedroom and two-and-a-half bathrooms, featuring an open concept layout combined with a luxurious kitchen, showcasing the aesthetics and functionality of modern modular construction to meet high-quality housing demands.
- Manufacturing Collaboration: This home was manufactured at Champion Homes' facility in Liverpool, Pennsylvania, in collaboration with River Valley Builders, demonstrating the company's strong production capabilities and collaborative network in modular construction.
- Industry Impact: Standing out among over 600 entries, the Muncy's recognition not only elevates Champion Homes' industry status but also sets a high standard for future modular home projects, driving the company towards continuous innovation and growth.
See More
Champion Homes Q3 2026 Earnings Call Insights
- Management Changes: CEO Tim Larson highlighted the appointment of new CFO Dave McKinstray, emphasizing the company's commitment to driving growth and operational execution in complex environments, while also acknowledging former CFO Laurie Hough's two decades of service, reflecting the importance of leadership continuity.
- Brand Recognition Boost: The Skyline Homes brand was named America's most trusted manufactured homebuilder by Lifestory Research for the sixth consecutive year, indicating success in brand building that is expected to further drive market demand and consumer trust.
- Financial Performance Overview: Third-quarter net sales increased by 2% to $657 million year-over-year, despite a 12% drop in net income to $54 million, reflecting challenges in the market environment and margin pressures, with management's cautious outlook indicating sensitivity to market fluctuations.
- Future Outlook: Management anticipates low single-digit revenue growth for the fourth quarter, with gross margins expected to be in the 25% to 26% range, despite challenges from cautious consumer sentiment and seasonal demand declines, indicating the company's pursuit of stable growth in an uncertain environment.
See More
