Stock analysis · Bull Rankings model

SKY analysis

Champion Homes, Inc.Residential Construction. Scored on the same transparent model behind the daily rankings.

SKY
Champion Homes, Inc. · Residential Construction
FCF$270mC
Rev+7.3%B
D/E0.09A
P/E22.6xB
PEG3.04D
52.7Score
$84.00$4.6B
1Y Target$92.50Analyst consensus · 6 analysts
5Y Target$135.43Compound horizon
10Y Target$200.90Long-dated conviction
FCF$270mTTM
C
FCF $270m — modest; watch for margin expansion
Rev+7.3%TTM YoY
B
Revenue +7.3% — at or above S&P median
D/E0.09
A
D/E 0.09 — least levered decile in Consumer Cyclical (≈10th pctile)
P/E22.6x
B
P/E 22.6 — near the Consumer Cyclical median (≈60th pctile)
PEG3.04proxy
D
PEG 3.04 — very expensive; pricing in best-case scenarios · PEG proxy: P/E ÷ revenue growth % (true PEG requires forward EPS estimates, not in Finnhub free tier).

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 52.7
Quality0.75
Growth0.50
Value0.39
Why this score
  • Buying back stock
  • Cyclical growth
Entry · Margin of safety
52-week rangeMid-range
15% off the 12-month high
vs DCF fair value17% belowest. fair value ~$101
What the price assumes: free cash flow compounding at ~7% a year for the next decade — vs the ~18% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability33% · B+gross profit ÷ total assets (Novy-Marx)
ROIC12.5% · B+return on invested capital — not score-weighted
Why now
Residential Construction · market cap $4.6b. 15% off the 52-week high of $99.17. 6 sell-side analysts publish a mean 1-yr target of $92.50 (implying +10% upside).
Moat
ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 130% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $92.50 (6-analyst consensus) — fundamentals + valuation re-rating. 5 yr $135.43 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $200.90 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

SKY vs the Top Picks average

PillarSKYBook avgDiff
Quality0.750.83-0.08
Growth0.500.91-0.41
Value0.390.75-0.36

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-4.4 over 34 daily scores
From 57.1 (Jun 22) → 52.7 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
23
Position size
$1,932
3.9% of portfolio
Stop price
$63.00
25% below $84.00
$ at risk if stopped
$483.00
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Champion Homes, Inc. (SKY): score, valuation & FAQ

Champion Homes, Inc. (SKY) is a Residential Construction company that scores 52.7 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A), while PEG (D) rate weaker. On valuation, SKY sits about 17% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 7% annual free-cash-flow growth over the next decade.

Is SKY a good stock to buy?

Bull Rankings scores SKY 52.7 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A). A score is a quantitative screen of Champion Homes, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does SKY score 52.7 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). SKY earns its highest marks on D/E (A), and is held back by PEG (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is SKY overvalued or undervalued?

Based on $84.00, SKY sits about 17% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 7% annual free-cash-flow growth over the next decade. It trades at a 22.6x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in SKY?

Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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