Logo image of SKY

CHAMPION HOMES INC (SKY) Stock Fundamental Analysis

NYSE:SKY - New York Stock Exchange, Inc. - US8308301055 - Common Stock

90.91  +0.3 (+0.33%)

After market: 90.91 0 (0%)

Fundamental Rating

6

Overall SKY gets a fundamental rating of 6 out of 10. We evaluated SKY against 67 industry peers in the Household Durables industry. SKY gets an excellent profitability rating and is at the same time showing great financial health properties. SKY is valied quite expensively at the moment, while it does show a decent growth rate. This makes SKY very considerable for quality investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

SKY had positive earnings in the past year.
In the past year SKY had a positive cash flow from operations.
In the past 5 years SKY has always been profitable.
In the past 5 years SKY always reported a positive cash flow from operatings.
SKY Yearly Net Income VS EBIT VS OCF VS FCFSKY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

1.2 Ratios

The Return On Assets of SKY (7.41%) is comparable to the rest of the industry.
SKY's Return On Equity of 10.07% is in line compared to the rest of the industry. SKY outperforms 47.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.33%, SKY is in line with its industry, outperforming 56.92% of the companies in the same industry.
SKY had an Average Return On Invested Capital over the past 3 years of 21.86%. This is significantly above the industry average of 11.99%.
The last Return On Invested Capital (8.33%) for SKY is well below the 3 year average (21.86%), which needs to be investigated, but indicates that SKY had better years and this may not be a problem.
Industry RankSector Rank
ROA 7.41%
ROE 10.07%
ROIC 8.33%
ROA(3y)17.81%
ROA(5y)14.02%
ROE(3y)24.32%
ROE(5y)20.02%
ROIC(3y)21.86%
ROIC(5y)17.65%
SKY Yearly ROA, ROE, ROICSKY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

The Profit Margin of SKY (6.42%) is comparable to the rest of the industry.
SKY's Profit Margin has improved in the last couple of years.
SKY has a Operating Margin (7.95%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SKY has grown nicely.
Looking at the Gross Margin, with a value of 24.36%, SKY is in line with its industry, outperforming 41.54% of the companies in the same industry.
SKY's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.95%
PM (TTM) 6.42%
GM 24.36%
OM growth 3Y4.19%
OM growth 5YN/A
PM growth 3Y6.68%
PM growth 5YN/A
GM growth 3Y5.82%
GM growth 5Y5.86%
SKY Yearly Profit, Operating, Gross MarginsSKY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

7

2. Health

2.1 Basic Checks

SKY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SKY has more shares outstanding
The number of shares outstanding for SKY has been increased compared to 5 years ago.
Compared to 1 year ago, SKY has a worse debt to assets ratio.
SKY Yearly Shares OutstandingSKY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
SKY Yearly Total Debt VS Total AssetsSKY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 8.30 indicates that SKY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.30, SKY belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
SKY has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.60, SKY belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that SKY is not too dependend on debt financing.
SKY has a Debt to Equity ratio of 0.07. This is in the better half of the industry: SKY outperforms 76.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.6
Altman-Z 8.3
ROIC/WACC0.91
WACC9.19%
SKY Yearly LT Debt VS Equity VS FCFSKY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

SKY has a Current Ratio of 2.42. This indicates that SKY is financially healthy and has no problem in meeting its short term obligations.
SKY has a Current ratio (2.42) which is comparable to the rest of the industry.
A Quick Ratio of 1.64 indicates that SKY should not have too much problems paying its short term obligations.
SKY has a Quick ratio of 1.64. This is in the better half of the industry: SKY outperforms 78.46% of its industry peers.
Industry RankSector Rank
Current Ratio 2.42
Quick Ratio 1.64
SKY Yearly Current Assets VS Current LiabilitesSKY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

6

3. Growth

3.1 Past

SKY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.45%.
Measured over the past years, SKY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.92% on average per year.
The Revenue has grown by 16.86% in the past year. This is quite good.
Measured over the past years, SKY shows a quite strong growth in Revenue. The Revenue has been growing by 8.29% on average per year.
EPS 1Y (TTM)-21.45%
EPS 3Y27.49%
EPS 5Y19.92%
EPS Q2Q%13.41%
Revenue 1Y (TTM)16.86%
Revenue growth 3Y12.53%
Revenue growth 5Y8.29%
Sales Q2Q%32.88%

3.2 Future

SKY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.43% yearly.
Based on estimates for the next years, SKY will show a quite strong growth in Revenue. The Revenue will grow by 8.74% on average per year.
EPS Next Y9.18%
EPS Next 2Y13.5%
EPS Next 3Y10.43%
EPS Next 5YN/A
Revenue Next Year15.85%
Revenue Next 2Y11.34%
Revenue Next 3Y8.74%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SKY Yearly Revenue VS EstimatesSKY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
SKY Yearly EPS VS EstimatesSKY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.89, which means the current valuation is very expensive for SKY.
Based on the Price/Earnings ratio, SKY is valued a bit more expensive than 61.54% of the companies in the same industry.
SKY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 22.40, the valuation of SKY can be described as rather expensive.
72.31% of the companies in the same industry are cheaper than SKY, based on the Price/Forward Earnings ratio.
SKY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 27.89
Fwd PE 22.4
SKY Price Earnings VS Forward Price EarningsSKY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

66.15% of the companies in the same industry are cheaper than SKY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKY is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 28.5
EV/EBITDA 20.62
SKY Per share dataSKY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SKY does not grow enough to justify the current Price/Earnings ratio.
SKY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.04
PEG (5Y)1.4
EPS Next 2Y13.5%
EPS Next 3Y10.43%

0

5. Dividend

5.1 Amount

SKY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CHAMPION HOMES INC

NYSE:SKY (1/21/2025, 8:26:54 PM)

After market: 90.91 0 (0%)

90.91

+0.3 (+0.33%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)10-28 2024-10-28/amc
Earnings (Next)02-04 2025-02-04/bmo
Inst Owners102.46%
Inst Owner Change-0.37%
Ins Owners1.54%
Ins Owner Change-5.35%
Market Cap5.22B
Analysts72
Price Target96.05 (5.65%)
Short Float %5.91%
Short Ratio3.82
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.8%
Min EPS beat(2)13.87%
Max EPS beat(2)19.73%
EPS beat(4)3
Avg EPS beat(4)12.5%
Min EPS beat(4)-9.65%
Max EPS beat(4)26.04%
EPS beat(8)7
Avg EPS beat(8)14.65%
EPS beat(12)11
Avg EPS beat(12)24.06%
EPS beat(16)15
Avg EPS beat(16)30.58%
Revenue beat(2)2
Avg Revenue beat(2)2.41%
Min Revenue beat(2)1.44%
Max Revenue beat(2)3.38%
Revenue beat(4)3
Avg Revenue beat(4)2.58%
Min Revenue beat(4)-5.32%
Max Revenue beat(4)10.85%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)9
Avg Revenue beat(12)4.29%
Revenue beat(16)13
Avg Revenue beat(16)6.07%
PT rev (1m)1.99%
PT rev (3m)6.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)0%
EPS NY rev (3m)3.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
Industry RankSector Rank
PE 27.89
Fwd PE 22.4
P/S 2.23
P/FCF 28.5
P/OCF 21.92
P/B 3.5
P/tB 4.91
EV/EBITDA 20.62
EPS(TTM)3.26
EY3.59%
EPS(NY)4.06
Fwd EY4.46%
FCF(TTM)3.19
FCFY3.51%
OCF(TTM)4.15
OCFY4.56%
SpS40.77
BVpS26
TBVpS18.53
PEG (NY)3.04
PEG (5Y)1.4
Profitability
Industry RankSector Rank
ROA 7.41%
ROE 10.07%
ROCE 11.56%
ROIC 8.33%
ROICexc 12.55%
ROICexgc 20.27%
OM 7.95%
PM (TTM) 6.42%
GM 24.36%
FCFM 7.82%
ROA(3y)17.81%
ROA(5y)14.02%
ROE(3y)24.32%
ROE(5y)20.02%
ROIC(3y)21.86%
ROIC(5y)17.65%
ROICexc(3y)44.45%
ROICexc(5y)33.78%
ROICexgc(3y)81.69%
ROICexgc(5y)65.45%
ROCE(3y)29.5%
ROCE(5y)23.96%
ROICexcg growth 3Y-27.16%
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.87%
ROICexc growth 5YN/A
OM growth 3Y4.19%
OM growth 5YN/A
PM growth 3Y6.68%
PM growth 5YN/A
GM growth 3Y5.82%
GM growth 5Y5.86%
F-Score4
Asset Turnover1.15
Health
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.6
Debt/EBITDA 0.49
Cap/Depr 135.22%
Cap/Sales 2.35%
Interest Coverage 250
Cash Conversion 105.04%
Profit Quality 121.84%
Current Ratio 2.42
Quick Ratio 1.64
Altman-Z 8.3
F-Score4
WACC9.19%
ROIC/WACC0.91
Cap/Depr(3y)166.6%
Cap/Depr(5y)125.65%
Cap/Sales(3y)2.02%
Cap/Sales(5y)1.55%
Profit Quality(3y)94.65%
Profit Quality(5y)112.34%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.45%
EPS 3Y27.49%
EPS 5Y19.92%
EPS Q2Q%13.41%
EPS Next Y9.18%
EPS Next 2Y13.5%
EPS Next 3Y10.43%
EPS Next 5YN/A
Revenue 1Y (TTM)16.86%
Revenue growth 3Y12.53%
Revenue growth 5Y8.29%
Sales Q2Q%32.88%
Revenue Next Year15.85%
Revenue Next 2Y11.34%
Revenue Next 3Y8.74%
Revenue Next 5YN/A
EBIT growth 1Y-34.11%
EBIT growth 3Y17.25%
EBIT growth 5YN/A
EBIT Next Year28.66%
EBIT Next 3Y17.42%
EBIT Next 5YN/A
FCF growth 1Y-50.74%
FCF growth 3Y5.18%
FCF growth 5Y26.17%
OCF growth 1Y-42.53%
OCF growth 3Y13.11%
OCF growth 5Y27.85%