2024-04-20 04:22:14 ET
Summary
- Skyline Champion specializes in factory-built housing and has demonstrated strong revenue growth and margin expansion over the last two years.
- However, the housing market is showing signs of weakness in FY2023, as volume was flat year-over-year in the US while Canada was down double digits.
- In 3Q24, revenue fell in the low single digits, but it was an improvement compared to the previous two quarters.
- The uncertainty in the Fed's rate cut timing and aging homes may create tailwinds for Skyline Champion in the longer term.
- However, I am recommending a hold rating as its share price lacks a margin of safety.
Synopsis
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Skyline Champion: Weak Housing Demand And A Lack Of Margin Of Safety In Share Price