Summary: ON SALE
Score: 13/20
MOS: 93%
Share Price: $28
Sticker Price: $434
Is Skyline a good buy?
Skyline is based out of Troy, MI and manufactures modular homes for multi-family, hospitality, and senior living sectors. Their Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Excel Homes, Homes of Merit, New Era, Redman Homes, Shore Park, Silvercrest, Titan Homes in the United States, and Moduline and SRI Homes in western Canada.
Within a previous newsletter I talked about CVCO (Cavco Industries) which also manufactures module homes. As I mentioned in that newsletter, the average cost of a custom single family home in the US is about $272,000. The average cost of a manufactured single family home is $62,600.
Where coming into a time where a high number of baby boomers will be retiring which means they will be downsizing. In the event that boomers still have a mortgage, they can quickly get out from under a mortgage by selling their current home and buying a home in a senior living community for a fraction of the cost.
Maintenance is lower on manufactured homes because the homes are usually built in communities. Specialized contractors are paid by the “community” like a condo association to maintain the homes and yards. Manufactured homes are more popular in retirement communities but they are starting to expand outside that market.
I read an article on Investopedia that states the average baby boomer has $152,000 saved for retirement. If they want to retire, they have no choice but to sell their home and downsize. In this case, they’ll pocket more cash to apply to their retirement account because $152,000 won’t last long.
With a score of 13/20, the financials are looking pretty good. What’s really attractive about this stock is the share price of $28 vs the sticker price of $434.
To provide a quick recap, CVCO has a score of 16/20, a share price of $186, and a sticker price of $439.
—
The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.