By analyzing existing forward-looking signals between Skyline Corp and DR Horton, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in DR Horton with a short position in Skyline Corp. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Skyline Corp has an asset utilization ratio of 3674.2 percent. This suggests that the company is making $36.74 for each dollar of assets. An increasing asset utilization means that Skyline Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Skyline. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Skyline, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Skyline's Liquidity
Skyline
financial leverage refers to using borrowed capital as a funding source to finance Skyline ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Skyline financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Skyline's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Skyline's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Skyline's total debt and its cash.
Skyline Gross Profit
Skyline Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Skyline previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Skyline Gross Profit growth over the last 10 years. Please check Skyline's
gross profit and other
fundamental indicators for more details.
A Deeper Perspective On Skyline
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Skyline Corp revenue. Based on the latest financial disclosure, Skyline Corp reported 2.02
B of revenue. This is 71.67% lower than that of the Consumer Cyclical sector and 55.63% lower than that of the
Residential Construction industry. The revenue for all United States stocks is 78.59% higher than that of the firm. As for DR Horton we see revenue of 30.45
B, which is much higher than that of the Residential Construction
| SKY | 2.02 Billion | 5.46 |
| Sector | 4.55 Billion | 12.3 |
| DHI | 30.45 Billion | 82.25 |
Momentum Analysis of Skyline Corp suggests possible reversal in June
Skyline Corp current potential upside rises over 5.84.
As of the 22nd of May, Skyline Corp has the
coefficient of variation of
(986.77), and Risk Adjusted Performance of
(0.13). In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Skyline Corp, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to collect data for nineteen
technical drivers for Skyline Corp, which can be compared to its competition. Please validate
Skyline Corp market risk adjusted performance,
variance, as well as the
relationship between the Variance and
potential upside to decide if Skyline Corp is priced more or less accurately, providing market reflects its prevalent price of 54.05 per share. Given that Skyline Corp has
jensen alpha of
(0.09), we advise you to double-check Skyline Corp's current market performance to make sure the company can sustain itself at a future point.
Our Final Take On Skyline Corp
While some companies in the residential construction industry are either recovering or due for a correction, Skyline may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 22nd of May 2022, our up-to-date 90 days 'Buy-vs-Sell' recommendation on the company is
Sell. However, we believe Skyline Corp is
undervalued with
very small odds of financial distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Skyline. Please refer to our
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