Champion Homes, Inc. Fundamental Analysis
Champion Homes, Inc. (SKY) shows moderate financial fundamentals with a PE ratio of 21.38, profit margin of 7.77%, and ROE of 13.10%. The company generates $2.6B in annual revenue with strong year-over-year growth of 22.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SKY's fundamental strength across five key dimensions:
Efficiency Score
WeakSKY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSKY shows balanced valuation metrics.
Growth Score
ExcellentSKY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSKY maintains a strong and stable balance sheet.
Profitability Score
WeakSKY struggles to sustain strong margins.
Key Financial Metrics
Is SKY Expensive or Cheap?
P/E Ratio
SKY trades at 21.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SKY's PEG of 3.34 indicates potential overvaluation.
Price to Book
The market values Champion Homes, Inc. at 2.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.92 times EBITDA. This signals the market has high growth expectations.
How Well Does SKY Make Money?
Net Profit Margin
For every $100 in sales, Champion Homes, Inc. keeps $7.77 as profit after all expenses.
Operating Margin
Core operations generate 9.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.10 in profit for every $100 of shareholder equity.
ROA
Champion Homes, Inc. generates $9.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Champion Homes, Inc. produces operating cash flow of $295.21M, showing steady but balanced cash generation.
Free Cash Flow
Champion Homes, Inc. generates strong free cash flow of $262.06M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.77 in free cash annually.
FCF Yield
SKY converts 6.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How SKY Stacks Against Its Sector Peers
| Metric | SKY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.38 | 23.82 | Better (Cheaper) |
| ROE | 13.10% | 1185.00% | Weak |
| Net Margin | 7.77% | 2545.00% | Weak |
| Debt/Equity | 0.07 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 2.65 | 2.82 | Strong Liquidity |
| ROA | 9.71% | -8457.00% (disorted) | Weak |
SKY outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Champion Homes, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.01%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
234.95%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
208.15%
Industry Style: Cyclical, Growth, Discretionary
High Growth