Skyline Stock Story


USD 67.20  1.15  1.74%   

DR Horton would continue recover faster as its shares surged to 3.35 percent against Skyline Corp's 0.7831%. While some baby boomers are getting worried about consumer cyclical space, we are going to break down both, Skyline Corp and DR Horton as potential short-term investments. We are going to inspect some of the competitive aspects of both Skyline and DR Horton.
Published over two months ago
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Will DR Horton (NYSE:DHI) and Skyline Corp (NYSE:SKY) deliver in June?

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.

How important is Skyline Corp's Liquidity

Skyline Corp financial leverage refers to using borrowed capital as a funding source to finance Skyline Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Skyline Corp 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. Please check the breakdown between Skyline Corp's total debt and its cash.

How does Skyline utilize its cash?

To perform a cash flow analysis of Skyline Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Skyline Corp is receiving and how much cash it distributes out in a given period. The Skyline Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Skyline Corp Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Skyline Corp reported Net Cash Flow from Operations of 224.48 Million in 2021

Acquisition by Erin Nelson of 1698 shares of Skyline Corp subject to Rule 16b-3

Legal trades by Skyline Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Skyline insider trading alert for grant of common stock by Erin Nelson, the corporate stakeholder, on 28th of July 2022. This event was filed by Skyline Champion Corp with SEC on 2022-07-28. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective On Skyline Corp

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

30.4 B
SKY2.02 Billion5.46
Sector4.55 Billion12.3
DHI30.45 Billion82.25

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.

Editorial Staff

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 Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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