Skyline Corporation designs, produces, and markets manufactured housing, modular housing, and park models to independent dealers and manufactured housing communities located in the United States and Canada. The company was founded in 1951 and is based in Elkhart, Indiana.
SKY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SKY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Skyline Champion Corp ranked in the 94th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 6360.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Skyline Champion Corp ended up being:
The compound growth rate in the free cash flow of Skyline Champion Corp over the past 4.29 years is 1.33%; that's higher than 97% of free cash flow generating stocks in the Consumer Cyclical sector.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately merely 18.39% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SKY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.78% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PRTY, LIVE, TM, SIG, and NVFY can be thought of as valuation peers to SKY, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.