# Skyline (SKY.US)

Canonical: https://gigainvestors.com/s/SKY

Analysis as of: 2026-10-16T07:31:55.962Z. Financial observations: FY2018–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $79.94 per share; close as of 2026-10-15.

Estimated value: low $58.04 per share, central $64.18 per share, high $72.36 per share. Buy at or below the central value $64.18 per share. Valuation as of 2026-10-16T07:31:55.962Z; scenarios are not confidence intervals.

Expected annual return: 8.3% at the stated quote. About 8.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.63×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.05×

- FY2019: -0.02×

- FY2020: 0.07×

- FY2021: 0.08×

- FY2022: 0.15×

- FY2023: 0.20×

- FY2024: 0.09×

- FY2025: 0.10×

- FY2026: 0.09×

### moat: pass

- ROIC, median of available years: 28.7%

- ROIC, second-lowest year: 18.3%

- Typical minus recent gross margin: -2.7 pp

- Typical gross margin (annual median): 23.5%

- Recent gross margin (lower of latest and 3-year median): 26.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 17.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 28.0%

- FY2019: -8.1%

- FY2020: 28.7%

- FY2021: 43.9%

- FY2022: 97.3%

- FY2023: >100%

- FY2024: 18.3%

- FY2025: 25.3%

- FY2026: 29.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: $1.2B

- Return on incremental invested capital: 53.6%

- Working capital / revenue, annual change: 0.7 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.88×

- FY2025: 1.00×

- FY2026: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2026 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 28.0% vs 25.3%

- Per-share earnings: 0.36 to 3.42 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: $3.2B

- Cumulative retained earnings: $953M

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 45.8%

- Per-share value change: $3.06

- Per-share value, starting three-year median: $0.36

- Per-share value, ending three-year median: $3.42

- Buybacks concentrated in cheaper years (correlation): -0.15

- Average buyback yield: 1.5%

- Buyback history: 9 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 28.0%

- ROIC, last three-year median: 25.3%

Chart: Earnings per share; fiscal year observations.

- FY2018: $0.36

- FY2019: -$1.09

- FY2020: $1.02

- FY2021: $1.49

- FY2022: $4.33

- FY2023: $7.00

- FY2024: $2.53

- FY2025: $3.42

- FY2026: $3.66

### accounting: pass

- Sloan accruals: -4.5%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.47×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.27×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -4.0%

- FY2019: -17.6%

- FY2020: -2.4%

- FY2021: -7.5%

- FY2022: 1.9%

- FY2023: -0.9%

- FY2024: -4.0%

- FY2025: -2.0%

- FY2026: -4.5%

## Holders

- [Martin Whitman](https://gigainvestors.com/TA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Nov 2024 · "SKY Q2 Deep Dive: Community Channel Demand and Cost Control Drive Outperformance" (finance.yahoo.com, Aug 2025) · sales +7.3%

Story as of 2026-10-16T09:59:35.288Z; price observation 2026-10-15.

Price needs cash profits to grow 4.3% a year for ten years

- 2025-08-12: SKY Q2 Deep Dive: Community Channel Demand and Cost Control Drive Outperformance ([finance.yahoo.com](https://finance.yahoo.com/news/sky-q2-deep-dive-community-071257917.html))

### Sales · FY2025–2026

sales +7.3%; source https://www.sec.gov/Archives/edgar/data/90896/000119312526239333/sky-20260328.htm; observed 2026-05-26.

- FY2018: $1.1B 

- FY2019: $1.4B 

- FY2020: $1.4B 

- FY2021: $1.4B 

- FY2022: $2.2B 

- FY2023: $2.6B 

- FY2024: $2.0B 

- FY2025: $2.5B 

- FY2026: $2.7B 

### Gross margin · FY2026

gross margin 26.4%; source https://www.sec.gov/Archives/edgar/data/90896/000119312526239333/sky-20260328.htm; observed 2026-05-26.

- FY2018: 16.6% 

- FY2019: 17.7% 

- FY2020: 20.0% 

- FY2021: 19.9% 

- FY2022: 26.3% 

- FY2023: 31.0% 

- FY2024: 23.5% 

- FY2025: 26.2% 

- FY2026: 26.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in residential construction; annual sales are USD 2.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/90896/000119312526239333/sky-20260328.htm (filed 2026-05-26); FY2026: revenue 2663639000; grossProfit 704319000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SKY.US: Champion Homes, Inc. produces and sells factory-built housing in the United States and Canada. The company offers manufactured and modular homes, park models recreational vehicles and cabins, accessory dwelling units, commercial structures, and modular buildings for the single and multi-family markets. It builds homes under the Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the United States; and Moduline and SRI Homes brand names in western Canada. The company also provides construction service to install and set-up factory-built homes under the Champion Construction brand; operates a factory-direct manufactured home retail business under the Regional Homes, Titan Factory Direct, and Champion Homes Center brand names; and offers transportation services to manufactured housing and other industries. The company was formerly known as Skyline Champion Corporation and changed its name to Champion Homes, Inc. in August 2024. The company was founded in 2010 and is headquartered in Troy, Michigan.

### Why customers stay

Margins ranged from 23.5% to 26.4% during 2024–26; it earns 28.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2024: grossProfit / revenue = 23.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2025: grossProfit / revenue = 26.2%.

- Source: https://www.sec.gov/Archives/edgar/data/90896/000119312526239333/sky-20260328.htm (filed 2026-05-26); FY2026: grossProfit / revenue = 26.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); 9-year return on capital observations [[2018,0.27980293604581696],[2019,-0.08082356754244384],[2020,0.2870761487968193],[2021,0.43866950668698473],[2022,0.9731753269526048],[2023,1.2659136825602202],[2024,0.18313954449540226],[2025,0.2529485460964239],[2026,0.2932841901816502]]; median 0.2870761487968193. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 12.4% of cash earnings; earns 53.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2018: growth capex 0; upkeep 9442000; owner earnings 14618000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2020: growth capex 0; upkeep 15389000; owner earnings 61147000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2021: growth capex 0; upkeep 8016000; cash acquisitions 52548000; owner earnings 94510000. Growth capex plus acquisitions / owner earnings = 0.5560046555920009.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2022: growth capex 11043000; upkeep 20936000; cash acquisitions 207000; owner earnings 248044000. Growth capex plus acquisitions / owner earnings = 0.04535485639644579.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2023: growth capex 25518000; upkeep 26726000; cash acquisitions 6810000; owner earnings 401802000. Growth capex plus acquisitions / owner earnings = 0.08045753878776113.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2024: growth capex 0; upkeep 52915000; cash acquisitions 283189000; owner earnings 128691000. Growth capex plus acquisitions / owner earnings = 2.200534613920165.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); FY2025: growth capex 8622000; upkeep 41910000; cash acquisitions 0; owner earnings 198413000. Growth capex plus acquisitions / owner earnings = 0.0434548139486828.

- Source: https://www.sec.gov/Archives/edgar/data/90896/000119312526239333/sky-20260328.htm (filed 2026-05-26); FY2026: growth capex 0; upkeep 34119000; cash acquisitions 27336000; owner earnings 220568000. Growth capex plus acquisitions / owner earnings = 0.12393456893112328.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); Incremental return on capital 0.535568552116821, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); Dividend observations: [[2018,888000],[2019,65277000],[2020,2023000],[2021,1632000],[2022,1634000],[2023,37019000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/90896/000119312526239333/sky-20260328.htm (filed 2026-05-26); FY2026: cash repurchases 200000000 USD.

### Are managers owners

Insiders own 0.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SKY.US SharesStats.PercentInsiders = 0.758 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/90896/000119312526239333/sky-20260328.htm (filed 2026-05-26);  sufficient delivery of raw materials from our suppliers. In addition, a few key components of our products are produced by a small group of quality suppliers that have the capacity to supply large quantities. Disruption to the supply chain of these key components, including as a result of changes in U.S. trade policies, could have an adverse impact on our production output. Raw material shortages from these and other suppliers can be more severe during periods following natural disasters, geopolitical conflicts or other broader economic disruptions.

Changes in U.S. trade policies, including tariffs or other trade protection measures, could negatively impact our business operations, results of operations, and cash flows by increasing our costs of goods, causing supply chain disruptions, or reduce demand for our products.

Pricing for raw materials can be affected by national, regional, local, economic and political factors, including tariffs and periods of high inflation. We obtain raw materials through various supply channels, some of which involve importing materials from foreign countries. In fiscal 2025, the United States imposed increased tariffs on foreign imports into the United States from certain countries as well as additional proposed tariffs on other countries. The tariff policy environment has been and is expected to continue to be dynamic, and we cannot predict what additional actions may ultimately be taken by the United States or other governments with respect to tariffs or trade relations. As a result, we may be required to, among other things, take steps to mitigate the impact of tariffs on our business, including by raising the prices on products subject to such tariffs to share these costs with our customers and/or by making changes to our supply chain practices, sources of supply, or manufacturing locations, which could also have significant impacts on our financial results. Changes in U.S. trade policies could also lead to higher inflation, which would negatively impact consumers' purchasing power and demand for our products.

The factory-built housing industry is cyclical, is affected by seasonality and is sensitive to changes in general economic or other business conditions.

The factory-built housing industry is affected by seasonality. Sales during the period from March to November are typically higher than in other months. As a result, our sales and operating results sometimes fluctuate and may continue to fluctuate in the future.

The factory-built housing industry is also sensitive to changes in economic conditions and other factors, such as pandemics, employment rates, job growth, population growth, consumer confidence, consumer income, availability of financing, interest rate levels, and an oversupply of homes for sale. Changes in any of these conditions generally, or in the markets where we operate, could reduce dem

### What the price says

The price assumes cash profits grow 4.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-26); Ten-year compound average after fade. Initial solved rate 0.048391654227041975. Price 79.94; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $11.57 per share

- 2016-11: $12.80 per share

- 2016-12: $15.43 per share

- 2017-01: $10.47 per share

- 2017-02: $12.05 per share

- 2017-03: $9.42 per share

- 2017-04: $6.19 per share

- 2017-05: $5.26 per share

- 2017-06: $6.02 per share

- 2017-07: $7.47 per share

- 2017-08: $11.93 per share

- 2017-09: $12.09 per share

- 2017-10: $12.49 per share

- 2017-11: $12.22 per share

- 2017-12: $12.85 per share

- 2018-01: $22.09 per share

- 2018-02: $21.39 per share

- 2018-03: $22.00 per share

- 2018-04: $25.38 per share

- 2018-05: $31.74 per share

- 2018-06: $35.04 per share

- 2018-07: $25.68 per share

- 2018-08: $28.91 per share

- 2018-09: $28.57 per share

- 2018-10: $23.83 per share

- 2018-11: $22.52 per share

- 2018-12: $14.69 per share

- 2019-01: $18.06 per share

- 2019-02: $19.86 per share

- 2019-03: $19.00 per share

- 2019-04: $21.11 per share

- 2019-05: $23.39 per share

- 2019-06: $27.38 per share

- 2019-07: $28.50 per share

- 2019-08: $28.00 per share

- 2019-09: $30.09 per share

- 2019-10: $28.23 per share

- 2019-11: $33.18 per share

- 2019-12: $31.70 per share

- 2020-01: $28.75 per share

- 2020-02: $25.48 per share

- 2020-03: $15.68 per share

- 2020-04: $19.71 per share

- 2020-05: $24.84 per share

- 2020-06: $24.34 per share

- 2020-07: $28.23 per share

- 2020-08: $28.54 per share

- 2020-09: $26.77 per share

- 2020-10: $25.65 per share

- 2020-11: $30.73 per share

- 2020-12: $30.94 per share

- 2021-01: $33.63 per share

- 2021-02: $44.25 per share

- 2021-03: $45.26 per share

- 2021-04: $44.43 per share

- 2021-05: $50.65 per share

- 2021-06: $53.30 per share

- 2021-07: $56.40 per share

- 2021-08: $62.72 per share

- 2021-09: $60.06 per share

- 2021-10: $63.32 per share

- 2021-11: $78.25 per share

- 2021-12: $78.98 per share

- 2022-01: $67.34 per share

- 2022-02: $67.24 per share

- 2022-03: $54.88 per share

- 2022-04: $51.04 per share

- 2022-05: $53.13 per share

- 2022-06: $47.42 per share

- 2022-07: $63.30 per share

- 2022-08: $56.67 per share

- 2022-09: $52.87 per share

- 2022-10: $58.21 per share

- 2022-11: $51.99 per share

- 2022-12: $51.51 per share

- 2023-01: $58.95 per share

- 2023-02: $68.41 per share

- 2023-03: $75.23 per share

- 2023-04: $74.17 per share

- 2023-05: $58.13 per share

- 2023-06: $65.45 per share

- 2023-07: $69.66 per share

- 2023-08: $71.27 per share

- 2023-09: $63.72 per share

- 2023-10: $58.63 per share

- 2023-11: $60.19 per share

- 2023-12: $74.26 per share

- 2024-01: $68.48 per share

- 2024-02: $83.79 per share

- 2024-03: $85.01 per share

- 2024-04: $74.99 per share

- 2024-05: $69.61 per share

- 2024-06: $67.75 per share

- 2024-07: $81.51 per share

- 2024-08: $93.41 per share

- 2024-09: $94.85 per share

- 2024-10: $88.23 per share

- 2024-11: $103.73 per share

- 2024-12: $88.10 per share

- 2025-01: $92.33 per share

- 2025-02: $102.50 per share

- 2025-03: $94.76 per share

- 2025-04: $86.50 per share

- 2025-05: $65.40 per share

- 2025-06: $62.61 per share

- 2025-07: $60.90 per share

- 2025-08: $75.46 per share

- 2025-09: $76.37 per share

- 2025-10: $68.23 per share

- 2025-11: $85.84 per share

- 2025-12: $84.50 per share

- 2026-01: $78.38 per share

- 2026-02: $93.48 per share

- 2026-03: $74.37 per share

- 2026-04: $76.23 per share

- 2026-05: $73.63 per share

- 2026-06: $88.12 per share

- 2026-07: $79.61 per share

- 2026-08: $89.27 per share

- 2026-09: $85.70 per share

- 2026-10: $79.94 per share

## Annual estimated value (USD per share)

- FY2022: low $25.62 per share, central $28.21 per share, high $31.66 per share

- FY2023: low $45.13 per share, central $49.68 per share, high $55.74 per share

- FY2024: low $33.23 per share, central $36.73 per share, high $41.39 per share

- FY2025: low $47.00 per share, central $52.15 per share, high $59.00 per share

- FY2026: low $53.02 per share, central $58.91 per share, high $66.74 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/90896/000119312526239333/sky-20260328.htm); period 2026-03-28, filed 2026-05-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Martin Whitman](https://gigainvestors.com/TA): 100,576 SKY shares; USD 8,863,000 reported position value; 1.42% of portfolio; reduce; quarter 2026 Q2.

# SKY — Skyline Champion Corp.

Held by 1 investor · USD 8,863,000 total · 2026 Q2 · reported price USD 88.12 (split-adjusted).
Page: https://gigainvestors.com/s/SKY

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Martin Whitman (https://gigainvestors.com/TA) | USD 8,863,000 | 1.4% | reduce -0.18% |

## Total held by quarter

- 2025 Q2: USD 3,748,148 · 1 holder · USD 62.61
- 2025 Q3: USD 8,287,133 · 1 holder · USD 77.88
- 2025 Q4: USD 8,991,561 · 1 holder · USD 84.50
- 2026 Q1: USD 7,493,298 · 1 holder · USD 74.37
- 2026 Q2: USD 8,863,000 · 1 holder · USD 88.12