Champion Homes Inc. Common Stock (SKY)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Champion Homes as a cyclical manufacturer of factory-built housing, not a stable compounder. In fiscal 2026 ended 2026-03-28, revenue was $2.7B, net income $206.9M, and diluted EPS $3.66, up from fiscal 2025 revenue $2.5B, net income $198.4M, and diluted EPS $3.42, and well above fiscal 2024 revenue $2.0B, net income $146.7M, and diluted EPS $2.53. That shows real long-term growth, but the latest filed quarter, fiscal Q1 2027 ended 2026-06-27, had revenue of $710.2M versus $701.3M in fiscal Q1 2026, while net income fell to $49.2M from $64.7M and diluted EPS dropped to $0.89 from $1.13. Sales are flat and margins are under pressure. The balance sheet is a genuine strength: debt-to-equity of 0.08, Altman Z-Score of 5.96, and Piotroski F-Score of 8/9. Free cash flow is $266.0M, a 6.2% yield on the $4.3B market cap. But returns are only moderate—ROE 12.65% and ROCE 6.90%—and the business is correctly categorized as cyclical. At the 2026-10-13 close of $78.41, FairStock's P/E is 22.93 and P/B 2.71. The Graham Number is $47.22, implying a -66.05% margin of safety, so the price is well above that conservative value. EV/EBITDA is 11.58. I see a decent, well-financed operator with scale and brands, but not a bargain. The moat is limited by competition and housing cycles. Growth is slowing and recent profits are declining. I would want a wider discount before calling it compelling.

In plain English: Champion Homes makes factory-built houses in the U.S. and Canada. The company is profitable and carries little debt, but profit slipped in the latest quarter even though sales were nearly flat. At $78.41 a share, the price looks full compared with its earnings and net assets, though its cash flow gives some support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-27) · fiscal Q3 2026 10-Q (period ended 2025-12-27) · fiscal Q2 2026 10-Q (period ended 2025-09-27) · fiscal Q1 2026 10-Q (period ended 2025-06-28) · FY2026 10-K (period ended 2026-03-28) · FY2025 10-K (period ended 2025-03-29) · FY2024 10-K (period ended 2024-03-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer