Skyline Champion Corporation (SKY) AI Stock Analysis
SKY AI stock analysis summary
AI ResearchSkyline Champion Corporation is a North American manufacturer of factory-built homes and modular structures. In FY2026, the company generated $2.66B in revenue and $206.9M in net income, delivering $269.7M in free cash flow. Skyline Champion maintains a strong balance sheet with $661.5M in net cash and low debt.
- Market cap
- $4.22B
- Revenue (TTM)
- $2.67B
- P/E
- 22.7x fwd 23.4x
- 1Y return
- 9.7% S&P 500 16.8%
- Avg. target
- $101.83 31.0% vs last close
Bull case
- The balance sheet is well capitalized with $661.5M in net cash and a low debt-to-equity ratio of 0.08.
- Analysts project earnings to rebound in the fiscal year ending March 31, 2028, with EPS rising 21.2% to $4.20 on $3.00B in revenue.
- Free cash flow generation was strong in FY2026 at $269.7M, supporting $200.0M in share buybacks.
Bear case
- Earnings momentum slowed in the quarter ended June 30, 2026, with quarterly earnings falling 21.2% year-over-year.
- For the current fiscal year ending March 31, 2027, EPS is projected to decrease 10.1% to $3.46.
- The stock trades at a valuation premium with a forward P/E of 23.4x versus the US-listed Consumer Cyclical peer median of 14.1x.
What Skyline Champion does
Skyline Champion Corporation manufactures and distributes factory-built housing across North America. Its offerings include manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for multi-family and hospitality use. The company operates through brands such as Skyline Homes, Champion Home Builders, Genesis Homes, and Dutch Housing. It also offers setup and installation services, logistical transportation services, and a direct-to-consumer retail arm, Titan Factory Direct, which operates 18 sales centers across the southern United States.
Growth and profitability
Over the five-year period from FY2021 to FY2026, Skyline Champion grew revenue at a compound annual growth rate of 13.4%. Following a downturn in FY2024 where revenue dropped 22.3% to $2.02B, revenue recovered to $2.48B in FY2025 and $2.66B in FY2026. For FY2026, gross margin was 26.4%, operating margin was 9.5%, and net income reached $206.9M with EPS of $3.84. In the latest quarter ended June 30, 2026, quarterly revenue grew 1.3% year-over-year, while quarterly earnings declined 21.2%. Trailing twelve-month revenue stands at $2.67B with a net profit margin of 7.2%.
Balance sheet and cash flow
As of June 30, 2026, Skyline Champion held $784.7M in cash and short-term investments against $123.2M in total debt, resulting in a net cash position of $661.5M. The company maintains a current ratio of 2.74 and a debt-to-equity ratio of 0.08 on $1.57B in shareholders' equity. In FY2026, it generated $303.9M in operating cash flow and deployed $34.1M toward capital expenditures. Cash returns focused on share buybacks totaling $200.0M, which contributed to a 3.7% reduction in share count over five years.
Valuation and performance
Skyline Champion trades at a trailing P/E of 22.7x and a forward P/E of 23.4x, higher than the median of its US-listed Consumer Cyclical peers at 18.0x and 14.1x, respectively. Its enterprise value-to-EBITDA multiple is 12.4x compared to the peer median of 11.1x, and its price-to-sales ratio is 1.6x against 0.7x for peers. Over the past year, the stock returned 9.7%, trailing the S&P 500 (SPY) gain of 16.8%. Over five years, the stock is up 27.0%, compared to an 83.0% gain for the index.
What analysts expect
Wall Street analysts cover Skyline Champion with 2 Strong Buy, 3 Buy, and 2 Hold recommendations, with zero Sell ratings. The mean price target is $101.83, representing a 31.0% upside from the last close of $77.74. For the fiscal year ending March 31, 2027, consensus estimates project EPS to decline 10.1% to $3.46 on revenue of $2.79B. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is scheduled for November 3, 2026.
Key risks and what to watch
- Revenue growth moderated to 1.3% year-over-year in the latest quarter, below the peer median growth rate of 4.5%.
- Short interest stands at 6.3% of the float, reflecting market skepticism.
- The stock is trading 6.2% below its 200-day moving average and down 8.0% year-to-date.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SKY AI stock analysis
This page is an AI-written research summary of Skyline Champion Corporation (SKY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SKY income statement, SKY balance sheet, SKY key metrics, SKY analyst forecast, SKY chart. See the SKY stock overview for the latest quote and news.
SKY AI stock analysis FAQ
Does Skyline Champion Corporation pay a dividend?
No, Skyline Champion does not pay a dividend. Capital allocation has focused on capital expenditures of $34.1M and share buybacks totaling $200.0M in FY2026.
What is Skyline Champion's net cash position?
As of June 30, 2026, the company held $784.7M in cash and short-term investments and $123.2M in total debt, resulting in a net cash position of $661.5M.
When does Skyline Champion report earnings next?
The company's next earnings report is scheduled for November 3, 2026.
What is the consensus analyst target for SKY stock?
The mean analyst price target is $101.83, which sits 31.0% above the last closing price of $77.74.