NYSE:SKY

Stock Analysis Report

Executive Summary

Skyline Champion Corporation operates as a factory-built housing company in North America.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Skyline Champion's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.4%

SKY

2.6%

US Consumer Durables

0.4%

US Market


1 Year Return

29.1%

SKY

45.1%

US Consumer Durables

6.9%

US Market

Return vs Industry: SKY underperformed the US Consumer Durables industry which returned 45.1% over the past year.

Return vs Market: SKY exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

SKYIndustryMarket
7 Day7.4%2.6%0.4%
30 Day0.9%3.0%-1.2%
90 Day14.8%8.0%-0.4%
1 Year29.1%29.1%47.1%45.1%9.3%6.9%
3 Yearn/a53.2%48.5%45.8%36.4%
5 Yearn/a41.9%33.0%62.9%45.1%

Price Volatility Vs. Market

How volatile is Skyline Champion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Skyline Champion undervalued compared to its fair value and its price relative to the market?

4.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: SKY ($31.28) is trading above our estimate of fair value ($26.86)

Significantly Undervalued: SKY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SKY is unprofitable, so we can't compare its PE Ratio to the Consumer Durables industry average.

PE vs Market: SKY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate SKY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SKY is overvalued based on its PB Ratio (4.1x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Skyline Champion forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: SKY is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: SKY's loss is forecast to worsen by 0% next year.

Revenue vs Market: SKY's revenue (7.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SKY's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SKY's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has Skyline Champion performed over the past 5 years?

-38.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SKY is unprofitable, and losses have increased over the past 5 years at a rate of -38.8% per year.

Accelerating Growth: Unable to compare SKY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SKY is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (13.5%).


Return on Equity

High ROE: SKY has a negative Return on Equity (-9.25%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SKY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SKY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Skyline Champion's financial position?


Financial Position Analysis

Short Term Liabilities: SKY's short term assets ($328.6M) exceeds its short term liabilities ($204.5M)

Long Term Liabilities: SKY's short term assets (328.6M) exceeds its long term liabilities (85.8M)


Debt to Equity History and Analysis

Debt Level: SKY's debt to equity ratio (19%) is considered satisfactory

Reducing Debt: Insufficient data to determine if SKY's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: SKY has a high level of physical assets or inventory.

Debt Coverage by Assets: SKY's debt is covered by short term assets (assets are 4.007500x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SKY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SKY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 54.9% per year.


Next Steps

Dividend

What is Skyline Champion's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SKY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SKY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SKY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SKY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SKY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Skyline Champion's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

Mark Yost (47yo)

0.3yrs

Tenure

US$11,729,432

Compensation

Mr. Mark J. Yost has been the President and Chief Executive Officer of Skyline Corporation since June 1, 2019 and served as its Executive Vice President from June 4, 2018 to June 1, 2019 and served as its  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Mark's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Management Age and Tenure

0.4yrs

Average Tenure

48yo

Average Age

Experienced Management: SKY's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

58yo

Average Age

Experienced Board: SKY's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SKY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$300,20012 Aug 19
Joseph Kimmell
EntityIndividual
Role
Senior Key Executive
Executive Vice President of US Operations
Shares10,000
Max PriceUS$30.20
SellUS$2,077,47007 Aug 19
MAK Capital One, LLC
EntityCompany
Shares71,200
Max PriceUS$29.35
SellUS$88,11006 Aug 19
Joseph Kimmell
EntityIndividual
Role
Senior Key Executive
Executive Vice President of US Operations
Shares3,000
Max PriceUS$29.37
SellUS$349,09017 Jun 19
Richard Florea
EntityIndividual
Shares13,578
Max PriceUS$25.71
SellUS$230,37414 Jun 19
Richard Florea
EntityIndividual
Shares9,403
Max PriceUS$24.50
SellUS$14,544,00013 Jun 19
MAK Capital One, LLC
EntityCompany
Shares600,000
Max PriceUS$24.24
SellUS$243,35701 Jun 19
Richard Florea
EntityIndividual
Shares10,000
Max PriceUS$25.00
SellUS$87,175,79107 Mar 19
Centerbridge Partners, L.P.
EntityCompany
Shares4,313,071
Max PriceUS$20.21
SellUS$30,318,00005 Mar 19
MAK Capital One, LLC
EntityCompany
Shares1,500,000
Max PriceUS$20.21
SellUS$96,757,49205 Mar 19
Bain Capital Credit, LP
EntityCompany
Shares4,787,131
Max PriceUS$20.21
SellUS$87,175,79105 Mar 19
Centerbridge Partners, L.P.
EntityCompany
Shares4,713,071
Max PriceUS$20.21
SellUS$5,722,50007 Dec 18
Centerbridge Partners, L.P.
EntityCompany
Shares262,500
Max PriceUS$21.80
SellUS$3,270,00007 Dec 18
MAK Capital One, LLC
EntityCompany
Shares150,000
Max PriceUS$21.80
SellUS$5,722,50007 Dec 18
Bain Capital Credit, LP
EntityCompany
Shares262,500
Max PriceUS$21.80
SellUS$38,150,00004 Dec 18
Centerbridge Partners, L.P.
EntityCompany
Shares1,750,000
Max PriceUS$21.80
SellUS$38,150,00003 Dec 18
Bain Capital Credit, LP
EntityCompany
Shares1,750,000
Max PriceUS$21.80
SellUS$21,800,00030 Nov 18
MAK Capital One, LLC
EntityCompany
Shares1,000,000
Max PriceUS$21.80

Ownership Breakdown


Management Team

  • Mark Yost (47yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$11.73m
  • Tim Burkhardt (47yo)

    VP & Controller

    • Tenure: 0yrs
  • Laurie Hough (49yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$6.68m
  • Joe Kimmell (61yo)

    Executive Vice President of US Operations

    • Tenure: 0.4yrs
    • Compensation: US$5.64m
  • Jonathan Lyall (47yo)

    Executive Vice President of US Business Development

    • Tenure: 0.4yrs
    • Compensation: US$5.64m
  • Robert Spence (62yo)

    Senior VP

    • Tenure: 0.3yrs

Board Members

  • John Firth (61yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$208.73k
  • Tim Bernlohr (60yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$226.79k
  • Michael Berman (61yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$128.44k
  • Gary Robinette (70yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$183.19k
  • Eddie Capel (58yo)

    Additional Director

    • Tenure: 0.08yrs
  • Mark Yost (47yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$11.73m
  • Erin Nelson (50yo)

    Additional Director

    • Tenure: 0.08yrs
  • Keith Anderson (57yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$28.27m
  • Michael Kaufman (47yo)

    Director

    • Tenure: 1.3yrs

Company Information

Skyline Champion Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Skyline Champion Corporation
  • Ticker: SKY
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$1.774b
  • Shares outstanding: 56.72m
  • Website: https://ir.skylinechampion.com

Number of Employees


Location

  • Skyline Champion Corporation
  • 2520 By-Pass Road
  • PO Box 743
  • Elkhart
  • Indiana
  • 46515
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKYNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2018

Biography

Skyline Champion Corporation operates as a factory-built housing company in North America. The company offers manufactured and modular homes, as well as park-models and modular buildings for the multi-fami ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:48
End of Day Share Price2019/10/18 00:00
Earnings2019/06/29
Annual Earnings2019/03/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.