Skyline Champion (NYSE:SKY) Corp is a leading manufacturer of factory-built housing and related components. The company is headquartered in Troy, Michigan and operates a network of more than 40 manufacturing facilities across North America.
Skyline Champion Corp was formed in 2018 due to the merger between Skyline Corporation and Champion Enterprises Holdings, LLC. Skyline Corporation has been known for producing high-quality manufactured homes since 1951. Champion Enterprises Holdings, LLC had a strong modular and mobile home manufacturing track record. The merger united two industry leaders and created North America's largest publicly traded factory-built housing company.
Skyline Champion Corp produces and distributes factory-built homes and related components to a diverse customer base. The company's products include manufactured homes, modular homes, park model RVs and commercial structures. Skyline Champion Corp sells its products through independent retailers, builders and developers.
Skyline Champion Corp's management team is led by Mark Yost, the company's President and CEO. Yost has over 30 years of experience in the factory-built housing industry and previously served as the President and CEO of Champion Enterprises Holdings, LLC.
Skyline Champion Corp has reported strong financial results in recent years, reporting increased sales and net income. Skyline Champion Corp's profit margins have also improved recently, and its stock price has performed well. Skyline Champion Corp's valuation metrics are generally in line with industry peers.
The factory-built housing industry has seen strong growth in recent years, driven by a combination of factors, including affordability, quality and speed of construction. According to the Manufactured Housing Institute, factory-built housing accounted for approximately 10% of all new single-family homes sold in the United States in 2021.
Skyline Champion Corp operates in a highly competitive industry, with numerous players competing for market share. Major competitors include Clayton Homes, Fleetwood Homes and Cavco Industries. In addition, regulatory and political issues, such as zoning restrictions and financing regulations, can also impact the industry.
Skyline Champion Corp has identified several growth opportunities in the coming years. The company is investing in new product development, including energy-efficient homes and homes with advanced technology features. Skyline Champion Corp is also expanding its geographic reach, focusing on growing its presence in the Western United States.
The company has also made several strategic acquisitions in recent years to support its growth strategy. In 2022, Skyline Champion Corp acquired Pinnacle Park Homes, a park model RVs and cabins manufacturer. The acquisition will allow Skyline Champion Corp to expand its product offerings and strengthen its park model RV market position.
While Skyline Champion Corp has demonstrated strong financial performance in recent years, the company faces several potential risks and challenges. For example, consumer preferences or economic conditions could impact demand for factory-built housing, negatively impacting the company's sales and profitability.
Regulatory changes or political issues could also impact the industry, including changes in zoning regulations or financing requirements. Skyline Champion Corp could also face increased market competition, affecting the company's market share and profitability.
In addition, the company's financial performance could be impacted by fluctuations in raw material costs, such as lumber and steel. Skyline Champion Corp may also face challenges related to supply chain disruptions, such as delays in receiving materials or components from suppliers.
