Champion HomesSKY +0.79%88 Interest Coverage is 20.86 as of Mar. 2026, which is 27% below its 10-year median of 28.52. GuruFocus rates SKY with a GF Score™ of 88/100 and a GF Value™ of $93.41 (Fairly Valued). The stock has 6 warning signs investors should review. Among 78 Homebuilding & Construction companies, Champion Homes ranks better than 78.21% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Champion Homes's
Operating Income
for the
three
months ended in Mar. 2026 was $36 Mil. Champion Homes's Interest Expense for the
three
months ended in Mar. 2026 was $-2 Mil.
Champion Homes's interest coverage for the quarter that ended in Mar. 2026 was 20.86.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Champion Homes's Interest Coverage or its related term are showing as below:
SKY'
s Interest Coverage Range Over the Past 10 Years
Min: 8.25 Med: 28.52 Max: 158.21
Current: 33.36
SKY's Interest Coverage is ranked better than 78.21% of 78
companies
in the Homebuilding & Construction industry
Industry Median: 8.305
vs SKY: 33.36
Champion Homes (NYSE:SKY) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Champion Homes Interest Coverage Related Terms
Champion Homes Interest Coverage Historical Data
* Premium members only.
The historical data trend for Champion Homes's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
SKY vs CVCO, MHO, MTH: Interest Coverage Comparison
For the Residential Construction subindustry, Champion Homes's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Champion Homes's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Champion Homes's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Champion Homes (SKY) has a Interest Coverage of 20.86 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Champion Homes and its competitors. This is 27% below median its historical median of 28.52. Over the past decade, Champion Homes' Interest Coverage has ranged from 8.25 to 158.21. According to the industry distribution chart, Champion Homes ranks #17 out of 78 companies in the Homebuilding & Construction industry, placing it in the top 21.8%.
Is Champion Homes' Interest Coverage too high?
Champion Homes' current Interest Coverage of 20.86 is 27% below median its 10-year median of 28.52. Over the past 10 years, this metric has ranged from a low of 8.25 to a high of 158.21. The Homebuilding & Construction industry median Interest Coverage is 8.31. Champion Homes' value of 20.86 is 151.2% above this industry median. Based on the distribution chart, Champion Homes ranks #17 out of 78 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Champion Homes has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Champion Homes' Interest Coverage compare to CVCO and MHO?
According to the Homebuilding & Construction industry distribution chart, Champion Homes ranks #17 out of 78 companies for Interest Coverage. This places Champion Homes in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.31. Champion Homes' value of 20.86 is 151.2% above this benchmark. Historically, Champion Homes' own Interest Coverage has ranged from 8.25 to 158.21 over the past decade. While the company's 10-year median is 28.52 vs. the industry median of 8.31, Champion Homes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.31, based on 78 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Champion Homes's current Interest Coverage of 20.86 is 151.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Champion Homes and its competitors. For the Homebuilding & Construction industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Champion Homes's current Interest Coverage is 20.86, which is 27% below median its own 10-year median of 28.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Champion Homes stock overvalued right now?
Based on GuruFocus' analysis, Champion Homes (SKY) is currently considered Fairly Valued. The stock's GF Value™ is $93.41, compared to a current price of $88.12 — trading 5.7% below its estimated fair value. The current Interest Coverage is 20.86, which is 27% below median its 10-year median of 28.52 and 151.2% above the Homebuilding & Construction industry median of 8.31. Champion Homes' overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Champion Homes (SKY), the current Interest Coverage is 20.86 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Champion Homes (SKY) Overvalued in 2026?
Based on GuruFocus' analysis, Champion Homes stock appears to be undervalued.
The current stock price of $88.12 is trading 5.7% below its estimated GF Value™ of $93.41.
GuruFocus considers Champion Homes to be Fairly Valued.
Key valuation signals for SKY:
Interest Coverage: 20.86 (27% below median its 10-year median of 28.52)
GF Value™: $93.41 vs. price of $88.12 (5.7% below fair value)
Industry Position: 151.2% above the Homebuilding & Construction median (#17 of 78)
No single metric tells the full story. See the SKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 other hospitality sectors. In addition to its core home building business, the company 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.
88GF Score
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