Why is Skyline Champion Corp. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.25%
- Healthy long term growth as Net Sales has grown by an annual rate of 15.00% and Operating profit at 26.67%
- Company has a low Debt to Equity ratio (avg) at times
2
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at USD 231.54 MM
- INVENTORY TURNOVER RATIO(HY) Lowest at 5.43 times
3
With ROE of 13.06%, it has a expensive valuation with a 2.39 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -18.66%, its profits have risen by 35.2% ; the PEG ratio of the company is 0.5
4
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.66% returns
How much should you hold?
- Overall Portfolio exposure to Skyline Champion Corp. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Skyline Champion Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Skyline Champion Corp.
37.66%
0.67
48.45%
S&P 500
25.41%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
15.65%
EBIT Growth (5y)
27.62%
EBIT to Interest (avg)
72.98
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
1.45
Tax Ratio
20.87%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
49.75%
ROE (avg)
20.25%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
2.52
EV to EBIT
13.45
EV to EBITDA
11.34
EV to Capital Employed
3.30
EV to Sales
1.32
PEG Ratio
0.42
Dividend Yield
NA
ROCE (Latest)
24.54%
ROE (Latest)
14.43%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 302.82 MM
-9What is not working for the Company
OPERATING PROFIT(Q)
Lowest at USD 54.16 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 8.72 %
PRE-TAX PROFIT(Q)
Lowest at USD 45.2 MM
NET PROFIT(Q)
Lowest at USD 33.77 MM
EPS(Q)
Lowest at USD 0.53
Here's what is working for Skyline Champion Corp.
Operating Cash Flow
Highest at USD 302.82 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Depreciation
Highest at USD 13.06 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Skyline Champion Corp.
Pre-Tax Profit
At USD 45.2 MM has Fallen at -37.45%
over average net sales of the previous four periods of USD 72.25 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 33.77 MM has Fallen at -39.59%
over average net sales of the previous four periods of USD 55.9 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Profit
Lowest at USD 54.16 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 8.72 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 45.2 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 33.77 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.53
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)






