QualityDipStocks / Consumer Discretionary · Homebuilding
Champion Homes SKY
Outside our quality screen, so we don’t track its dips. It’s 9% below its 52-week high.
Outside our quality screen, trading above our fair value estimate.
Worth knowing
- Net cash = 16% of its market cap
From the data on this page, as of the last close. How we pick these
- Fair value est.
- $76.41−14%
- Market Value
- $86.20price +3%
- Off 52-wk high
- −9%
- Risk vs market
- Market-likebeta 0.97
5 bullish · 5 bearish See why
Repriced or dip?
Near its high
The price is 9% below its 52-week high (Jan 15), but the business held up: free cash flow +30.3%, shares outstanding fewer shares, each owns more, net cash (cash minus debt) +3.4% of market cap since the high.
Some numbers held up (free cash flow +30.3%, shares outstanding fewer shares, each owns more, net cash (cash minus debt) +3.4% of market cap since the high), others slipped (revenue growth rate −7.6 pts, earnings per share −11.0%). The price is 9% below its 52-week high.
The price is 9% below its 52-week high, and the business changed too: revenue growth rate −7.6 pts, earnings per share −11.0%.
Within 10% of its 52-week high, so there is no dip to judge yet.
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
At the high ($97.46, Jan 15) the price assumed about 13%/yr free-cash-flow growth; at the low ($65.23, May 19) about 1%; today about 6%. The last 3 years delivered −10%/yr (free cash flow).
Dashed line: what the last 3 years delivered, −10%/yr (free cash flow)
| High | Low | Now | |
|---|---|---|---|
| Price | $97.46Jan 15 | $65.23May 19 | $88.70 |
| Implied growth | +13% | +1% | +6% |
| P/E | 25.0× | 17.2× | 25.6× |
| P/FCF | 27.1× | 14.1× | 18.4× |
| EV/Sales | 1.9× | 1.2× | 1.5× |
What this means: the higher the implied growth, the more the price already counts on. If today's number sits well below what the business has delivered, the market expects less than its track record.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, SKY’s free cash flow would need to grow about 6% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much SKY moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves about in line with the market, and its own price swings are 3.5× the S&P 500’s.
- Beta vs S&P 500
- 0.97
- Volatility
- 45% vs 13% SPY
- Correlation SPY
- 0.28
- Correlation QQQ
- 0.15
How it ranks
Where SKY stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 1 of 6 measures
- Discount to fair value estimate14% · price above our base caseLowest 42%of 1,314
- Free cash flow yield5.4% · free cash flow vs market capTop 36%of 1,391
- Dividends + buybacks yield4.1% · cash paid out or used to retire shares, vs market capTop 35%of 1,836
- Revenue growth, last 12 months+4.5% · vs the 12 months beforeLowest 27%of 1,814
- Operating margin8.7% · of sales kept as operating profitLowest 39%of 1,288
- Return on invested capital22% · profit per dollar of capitalTop 19%of 838
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $76.41 · MV $86.20 · FCF value $83.16
Assumes 3.0% growth for 5 years (revenue grew 0.7% a year FY23–FY26; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $4.82 a share (trailing 12 months to Jun 27, 2026), from the 10-Q filed Aug 5, 2026. Net cash $761M, not added.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
Balance sheetNet cash of $761M: cash and short-term investments exceed debt (Jun 27, 2026).
Cash returnsShare count down 4.0% in a year: $200M of buybacks over 12 months.
Cash returnsFree cash flow grew 45% over the last 12 months vs the 12 months before.
ValuationFree-cash-flow yield of 5.4% (price / FCF 18.4×): $266M of free cash in the last 12 months.
ProfitabilityReturn on invested capital of 22%, above the 9.5% discount rate our DCF uses.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $76.41, 14% below the price.
GrowthSales grew only 0.7% a year from FY2023 to FY2026.
ProfitabilityGross margin of 26%, below the 37% median for the 254 Consumer Discretionary companies we cover.
ValuationEV/EBITDA of 14.7×, above the 12.3× median for the 230 Consumer Discretionary companies we cover.
RiskReports earnings Nov 3 (consensus EPS $0.92): results can move the price sharply and reset Market Value.
All fundamentals
P/E 25.6 · FCF yield 5.4% · ROE 12%
Valuation
- P/E
- 25.6×Consumer Discretionary median 20.7×
- Price / FCF
- 18.4×
- FCF yield
- 5.4%
- EV / EBITDA
- 14.7×
- Price / sales
- 1.83×
- Price / book
- 3.11×
- Market cap
- $4.9Bprice × diluted shares
- Enterprise value
- $4.1B
Growth
- Revenue, 12 months
- $2.7B
- Sales growth, 12 months
- +4.5%vs the 12 months before
- Sales growth, 3 yrs
- +0.7%/yrfrom FY2023
- Diluted EPS, 12 months
- $3.42
- EPS growth, last FY
- +7.0%
- Net income, 12 months
- $191M
- Net income growth
- −12%12 months vs before
Profitability
- Gross margin
- 26.0%
- Operating margin
- 8.7%
- Net margin
- 7.2%
- FCF margin
- 10.0%
- Return on equity
- 12%
- Return on invested capital
- 22%
Balance sheet
- Cash & short-term inv.
- $785M
- Total debt
- $24M
- Net cash
- $761M
- Debt / equity
- 0.02×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $266M
- FCF growth, 12 months
- +45%
- Dividend yield
- n/ano dividend payments tagged
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $200M4.1% of market cap
- Share count, 1 year
- −4.0%diluted shares vs a year ago
- Stock-based comp
- $22M
Trailing 12 months to Jun 27, 2026; balance sheet at Jun 27, 2026. From Champion Homes’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.2B · Sales +1%
- Free cash flow, 12 months$0.2B
- Free-cash-flow yield5.4%
- Free-cash-flow margin7%
- Gross margin26%
- Operating margin8%
- Return on invested capital20%
- Return on equity13%
- Sales growth (latest quarter vs year-ago quarter)+1%
- Net debt / EBITDA−2.3×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $88.70
- 52-wk lowlowest close, 1 year$65.23−26.5%
- Fair value est.base case$76.41−13.9%
- Market Valueavg paid since Aug 4$86.20−2.8%
- PriceMon Nov 2 close$88.70you are here
- 52-wk highhighest close, 1 year$97.46+9.9%
Momentum & 52-week range
RSI 64 · 5 days +11.9%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Next report
Nov 3
- DateTue Nov 3, after the close
- Consensus EPS$0.92
- Year-ago EPS$1.01
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
SKY is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Champion Homes in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Homebuilding
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.