Skyline Champion Corp. (SKY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Skyline Champion Corp.

NVR, Inc.

Toll Brothers, Inc.

PulteGroup, Inc.

D.R. Horton, Inc.

Taylor Morrison Home Corp.

Lennar Corp.

Meritage Homes Corp.

KB Home

Tri Pointe Homes, Inc.

Why is Skyline Champion Corp. ?

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

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 231.54 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 5.43 times

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

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

Real-Time Research Report

Verdict Report

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.

-20.34%

0.67

48.45%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

1.45

Tax Ratio

20.87%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

49.75%

ROE (avg)

20.25%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.76

EV to EBIT

14.94

EV to EBITDA

12.59

EV to Capital Employed

3.67

EV to Sales

1.46

PEG Ratio

0.46

Dividend Yield

ROCE (Latest)

24.54%

ROE (Latest)

14.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 296.15 MM

DEBT-EQUITY RATIO (HY)

Lowest at -33.96 %

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 6.95% (YoY

INTEREST(Q)

Highest at USD 2.39 MM

Here's what is working for Skyline Champion Corp.

Operating Cash Flow

Highest at USD 296.15 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -33.96 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 12.27 MM

in the last five periods

MOJO 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.

Interest

At USD 2.39 MM has Grown at 23.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 2.39 MM

in the last five periods and Increased by 23.04% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 6.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales