Champion Homes, Inc. (NYSE: SKY) Financial Performance Analysis

• Earnings per Share (EPS) of $0.65 missed the Zacks Consensus Estimate by 13.33%, indicating a potential area of concern despite a year-over-year increase.
• Revenue Growth showed a 10.7% increase from the previous year, reaching $593.9 million, although it fell short of expectations.
• Financial Health and Market Position appear robust with a low debt-to-equity ratio of 0.07 and a strong liquidity position, as indicated by a current ratio of 2.59.

Champion Homes, Inc. (NYSE:SKY) is a key player in the building products industry, specifically focusing on mobile homes and RV builders. The company recently reported its financial results for the fourth quarter and full fiscal year ending March 29, 2025. Despite a strong performance in the fiscal year, the latest earnings report showed some areas of concern.

On May 27, 2025, SKY reported earnings per share (EPS) of $0.65, which was below the Zacks Consensus Estimate of $0.75. This resulted in a negative surprise of 13.33%. However, this EPS still marked a slight increase from the $0.62 reported a year ago. In contrast, the previous quarter saw SKY exceed expectations with an EPS of $1.04, surpassing the anticipated $0.79 and resulting in a positive surprise of 31.65%.

In terms of revenue, SKY generated approximately $593.9 million for the quarter ending March 2025, which was 1.22% below the Zacks Consensus Estimate of $660.3 million. Despite this shortfall, the revenue represented a 10.7% increase from the $536.36 million reported in the same quarter last year. This growth was supported by a 5.1% rise in the number of U.S. homes sold, totaling 5,941 units.

SKY's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 18.40, indicating how the market values its earnings. The price-to-sales ratio is about 1.69, showing investor willingness to pay per dollar of sales. Additionally, the enterprise value to sales ratio is around 1.50, reflecting the company's valuation relative to its sales.

The company's financial health appears robust, with a debt-to-equity ratio of roughly 0.07, suggesting a low level of debt compared to equity. The current ratio stands at approximately 2.59, indicating a strong liquidity position to cover short-term liabilities. These metrics, along with an earnings yield of about 5.44%, provide a comprehensive view of SKY's financial standing and potential for return on investment.