Skyline Champion (NYSE:SKY) - Share price, News & Analysis

Q: What is the Fair Price of SKY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SKY ($47.42) is trading below our estimate of [[fair value]] ($71.43)

SKY fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

SKY Stock Overview

Skyline Champion Corporation produces and sells factory-built housing in North America.

Rewards

Trading at 33.6% below our estimate of its fair value

Earnings grew by 193.4% over the past year

Risk Analysis

Significant insider selling over the past 3 months

Skyline Champion Competitors

Meritage Homes

NYSE:MTH

US$2.7b

Taylor Morrison Home

NYSE:TMHC

US$2.8b

KB Home

NYSE:KBH

US$2.5b

Installed Building Products

NYSE:IBP

US$2.4b

Price History & Performance

Summary of all time highs, changes and price drops for Skyline Champion
Historical stock prices
Current Share Price	US$47.42
52 Week High	US$85.92
52 Week Low	US$43.04
Beta	1.78
1 Month Change	-10.75%
3 Month Change	-14.61%
1 Year Change	-13.69%
3 Year Change	74.60%
5 Year Change	n/a
Change since IPO	43.70%

Recent News & Updates

Jun 23

Should You Be Adding Skyline Champion (NYSE:SKY) To Your Watchlist Today?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Shareholder Returns

	SKY	US Consumer Durables	US Market
7D	-1.0%	-1.3%	-0.6%
1Y	-13.7%	-34.7%	-21.7%

Return vs Industry: SKY exceeded the US Consumer Durables industry which returned -33.7% over the past year.

Return vs Market: SKY exceeded the US Market which returned -20.8% over the past year.

Price Volatility

Is SKY's price volatile compared to industry and market?
SKY volatility
SKY Average Weekly Movement	9.8%
Consumer Durables Industry Average Movement	8.4%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: SKY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SKY's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	8,400	Mark Yost	https://ir.skylinechampion.com

Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada.

Skyline Champion Fundamentals Summary

How do Skyline Champion's earnings and revenue compare to its market cap?
SKY fundamental statistics
Market Cap	US$2.70b
Earnings (TTM)	US$248.04m
Revenue (TTM)	US$2.21b

10.9x

P/E Ratio

1.2x

P/S Ratio

Is SKY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKY income statement (TTM)
Revenue	US$2.21b
Cost of Revenue	US$1.62b
Gross Profit	US$589.12m
Other Expenses	US$341.08m
Earnings	US$248.04m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.36
Gross Margin	26.69%
Net Profit Margin	11.24%
Debt/Equity Ratio	5.8%

How did SKY perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SKY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SKY?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SKY. This is calculated by dividing SKY's market cap by their current preferred multiple.
What is SKY's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.70b

SKY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	6.6x
PEG Ratio	6.4x

Price to Earnings Ratio vs Peers

How does SKY's PE Ratio compare to its peers?

SKY PE Ratio vs Peers

The above table shows the PE ratio for SKY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	7.1x
MTH Meritage Homes	3.2x	-9.4%	US$2.7b
TMHC Taylor Morrison Home	3.8x	1.8%	US$2.8b
KBH KB Home	3.7x	-2.8%	US$2.5b
IBP Installed Building Products	17.9x	14.1%	US$2.4b
SKY Skyline Champion	10.9x	1.7%	US$2.7b

Forward PE

Price-To-Earnings vs Peers: SKY is expensive based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (7.1x).

Price to Earnings Ratio vs Industry

How does SKY's PE Ratio compare vs other companies in the US Consumer Durables Industry?

Price-To-Earnings vs Industry: SKY is expensive based on its Price-To-Earnings Ratio (10.9x) compared to the US Consumer Durables industry average (7x)

Price to Earnings Ratio vs Fair Ratio

What is SKY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SKY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.9x
Fair PE Ratio	11.1x

Price-To-Earnings vs Fair Ratio: SKY is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.1x).

Share Price vs Fair Value

What is the Fair Price of SKY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SKY ($47.42) is trading below our estimate of fair value ($71.43)

Significantly Below Fair Value: SKY is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: SKY is poor value based on its PEG Ratio (6.4x)

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKY's forecast earnings growth (1.7% per year) is below the savings rate (1.9%).

Earnings vs Market: SKY's earnings (1.7% per year) are forecast to grow slower than the US market (13.7% per year).

High Growth Earnings: SKY's earnings are forecast to grow, but not significantly.

Revenue vs Market: SKY's revenue (7.5% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: SKY's revenue (7.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if SKY's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Skyline Champion performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

52.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SKY has high quality earnings.

Growing Profit Margin: SKY's current net profit margins (11.2%) are higher than last year (6%).

Past Earnings Growth Analysis

Earnings Trend: SKY's earnings have grown significantly by 52.9% per year over the past 5 years.

Accelerating Growth: SKY's earnings growth over the past year (193.4%) exceeds its 5-year average (52.9% per year).

Earnings vs Industry: SKY earnings growth over the past year (193.4%) exceeded the Consumer Durables industry 39.2%.

Return on Equity

High ROE: SKY's Return on Equity (30.1%) is considered high.

Discover strong past performing companies

Financial Health

How is Skyline Champion's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SKY's short term assets ($782.3M) exceed its short term liabilities ($350.1M).

Long Term Liabilities: SKY's short term assets ($782.3M) exceed its long term liabilities ($59.4M).

Debt to Equity History and Analysis

Debt Level: SKY has more cash than its total debt.

Reducing Debt: SKY's debt to equity ratio has reduced from 56.6% to 5.8% over the past 5 years.

Debt Coverage: SKY's debt is well covered by operating cash flow (468.7%).

Interest Coverage: SKY's interest payments on its debt are well covered by EBIT (132.5x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SKY has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure

CEO

Mark Yost (49 yo)

3yrs

Tenure

US$5,765,742

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: Mark's total compensation ($USD5.77M) is about average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SKY's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: SKY's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/04/02
Annual Earnings	2022/04/02