C

Champion Homes, Inc. — Earnings Quality Grade C

SKY · Consumer Cyclical

Some red flags

Revenue
$2.5B
2025
Net Income
$198M
2025
Gross Margin
26.7%
Free Cash Flow
$190M
01

Screening Summary

16
Passed
0
Watch
1
Failed
-2.45
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 12 days, change +1 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 22.7%, CFFO 8.2%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 13.1% vs COGS 18.2%. Normal

B2CapEx vs Revenue

CapEx growth -4.5% vs revenue 22.7%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 64.3%. Normal

B4Gross Margin

Gross margin 26.7%, change +2.7pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.21. Profits backed by cash

C2Free Cash Flow

FCF $0.2B, FCF/NI = 0.96

C3Accruals Ratio

Accruals ratio = -2.0%. Low accruals

C4Cash vs Debt

Cash $0.6B covers debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.4B = 27% of equity. Manageable

D2Leverage

Debt/EBITDA = 0.4x. Healthy

D3Soft Asset Growth

Other assets 1.3% vs revenue 22.7%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -3% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.45 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.45
-4.0 Clean-2.22 Grey-1.78 Danger0
1.061
DSRI
AR growing faster than revenue?
0.897
GMI
Gross margin declining?
0.915
AQI
Asset quality deteriorating?
1.227
SGI
Revenue growth rate
0.892
DEPI
Depreciation slowing?
1.121
SGAI
SG&A ratio changing?
-0.0201
TATA
Accruals level
1.047
LVGI
Leverage increasing?
05

Altman Z-Score

7.19
Safe Zone
0 Distress1.102.605.0+ Safe
0.301
Liquidity
0.4625
Cumulative profit
0.126
Operating efficiency
2.7288
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25