Installed Building Products vs Champion Homes
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KIRA’s take AI analyst
I put Installed Building Products and Champion Homes side by side, using each one’s latest annual report. Here is what stands out:
- Installed Building Products is the larger business, with $3.0B of revenue in fiscal 2025 against $2.7B for Champion Homes.
- Champion Homes grew revenue faster (7.3%, against 1.0%).
- Installed Building Products kept more of each dollar of sales as operating profit (13.0% operating margin, against 9.5%).
- Installed Building Products earned a higher return on the capital invested in it (22.6%, against 20.8%).
- Investors pay more for each dollar of Champion Homes’s earnings: a P/E of 23.1x against 21.8x for Installed Building Products.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Installed Building Products
IBP
7/11
Gross marginOperating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Champion Homes
SKY
3/11
Revenue growth5-year growthNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | IBP FY25 | SKY FY26 |
|---|---|---|
| Size | ||
| Market cap | $5.4B | $4.4B |
| Revenue | $3.0B | $2.7B |
| Free cash flow | $301M | $270M |
| Net income | $265M | $207M |
| Growth | ||
| Revenue growth | 1.0% | 7.3% |
| 5-year growth | 12.4% | 13.4% |
| Share count change | −3.1% | −2.7% |
| Profitability | ||
| Gross margin | 34.0% | 26.4% |
| Operating margin | 13.0% | 9.5% |
| Net margin | 8.9% | 7.8% |
| FCF margin | 10.1% | 10.1% |
| Return on capital | 22.6% | 20.8% |
| Return on equity | 37.5% | 13.3% |
| Balance sheet | ||
| Net debt | $571M | −$615M |
| Net debt / EBITDA | 1.3x | −2.1x |
| Dividends and buybacks | $260M | $200M |
| Valuation & quality | ||
| P/E | 21.8x | 23.1x |
| Piotroski F-score | 7 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.