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SKY (Champion Homes) Gross Margin % : 28.07% (As of Dec. 2024)


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What is Champion Homes Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Champion Homes's Gross Profit for the three months ended in Dec. 2024 was $181 Mil. Champion Homes's Revenue for the three months ended in Dec. 2024 was $645 Mil. Therefore, Champion Homes's Gross Margin % for the quarter that ended in Dec. 2024 was 28.07%.


The historical rank and industry rank for Champion Homes's Gross Margin % or its related term are showing as below:

SKY' s Gross Margin % Range Over the Past 10 Years
Min: 9.14   Med: 19.15   Max: 31.41
Current: 25.14


During the past 13 years, the highest Gross Margin % of Champion Homes was 31.41%. The lowest was 9.14%. And the median was 19.15%.

SKY's Gross Margin % is ranked better than
63.74% of 91 companies
in the Homebuilding & Construction industry
Industry Median: 23.06 vs SKY: 25.14

Champion Homes had a gross margin of 28.07% for the quarter that ended in Dec. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Champion Homes was 9.00% per year.


Champion Homes Gross Margin % Historical Data

The historical data trend for Champion Homes's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Champion Homes Gross Margin % Chart

Champion Homes Annual Data
Trend May15 May16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.37 20.25 26.69 31.41 23.99

Champion Homes Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.25 18.34 26.16 26.96 28.07

Competitive Comparison of Champion Homes's Gross Margin %

For the Residential Construction subindustry, Champion Homes's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Champion Homes's Gross Margin % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Champion Homes's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Champion Homes's Gross Margin % falls into.



Champion Homes Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Champion Homes's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=485.8 / 2024.823
=(Revenue - Cost of Goods Sold) / Revenue
=(2024.823 - 1539.029) / 2024.823
=23.99 %

Champion Homes's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=181 / 644.925
=(Revenue - Cost of Goods Sold) / Revenue
=(644.925 - 463.903) / 644.925
=28.07 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Champion Homes  (NYSE:SKY) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Champion Homes had a gross margin of 28.07% for the quarter that ended in Dec. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Champion Homes Gross Margin % Related Terms

Thank you for viewing the detailed overview of Champion Homes's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Champion Homes Business Description

Traded in Other Exchanges
N/A
Address
755 West Big Beaver Road, Suite 1000, Troy, MI, USA, 48084
Champion Homes Inc is a factory-built housing company in North America. The company is well positioned with an portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors. In addition to its core home building business, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.
Executives
Timothy A. Burkhardt officer: Vice President and Controller C/O CHAMPION ENTERPRISES HOLDINGS LLC, 755 W BIG BEAVER RD, #1000, TROY MI 48084
Joseph A. Kimmell officer: EVP C/O SKYLINE CHAMPION CORPORATION, 755 WEST BIG BEAVER ROAD, SUITE 1000, TROY MI 48084
Mark J. Yost officer: Executive Vice President C/O CHAMPION ENTERPRISES HOLDINGS LLC, 755 W BIG BEAVER RD, #1000, TROY MI 48084
Mak Capital One Llc 10 percent owner 590 MADISON AVENUE, 31ST FLOOR, NEW YORK NY 10022
Jonathan Wade Lyall officer: Executive Vice President C/O SKYLINE CHAMPION CORPORATION, 755 WEST BIG BEAVER ROAD, SUITE 1000, TROY MI 48084
Laurie M. Hough officer: EVP, CFO, Treasurer C/O CHAMPION ENTERPRISES HOLDINGS LLC, 755 W BIG BEAVER RD, #1000, TROY MI 48084
Michael B Berman director C/O GENERAL GROWTH PROPERTIES, 110 NORTH WACKER DRIVE, CHICAGO IL 60606
Keith A Anderson officer: Chief Executive Officer C/O CHAMPION ENTERPRISES HOLDINGS LLC, 755 W BIG BEAVER RD, #1000, TROY MI 48084
Gary E Robinette director 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Timothy Mark Larson officer: Chief Growth Officer C/O SKYLINE CHAMPION CORPORATION, 755 W. BIG BEAVER RD., SUITE 1000, TROY MI 48084
Erin Mulligan Nelson director C/O SKYLINE CHAMPION CORPORATION, 755 WEST BIG BEAVER ROAD, SUITE 1000, TROY MI 48084
Heath Jenkins officer: President, Retail Operations 755 W BIG BEAVER ROAD, SUITE 1000, TROY MI 48084
Tawn Kelley director 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Nikul Patel director 11115 RUSHMORE DR, CHARLOTTE NC 28277-3442
Eddie Capel director 2300 WINDY RIDGE PARKWAY, SUITE 1000, ATLANTA GA 30339