Skyline Champion Corporation

Skyline Champion Corporation (NYSE: SKY) is the largest manufacturer of factory-built housing in the United States and Canada. The company provides manufactured and modular homes, park model RVs, accessory dwelling units (ADUs), and modular buildings for the multi-family, hospitality, senior, and workforce housing sectors.

Key Highlights

• The company reported a sharp uptick of 86.69% in net sales to USD 510.20 million in Q1FY22 (ended July 03, 2021) compared to USD 273.29 million in Q1FY21 (ended June 27, 2020).
• As of May 02, 2021, the company had cash and cash equivalents of USD 287.74 million and total debt of USD 68.11 million.
• SKY’s EBITDA margin for Q1FY22 was 12.3%, lower than the industry median of 15.2%.
• On March 01, 2021, Champion Home Builders, a subsidiary of SKY, acquired ScotBilt Homes, LLC, a provider of manufactured homes.
• Stock is currently trading above its crucial long-term as well as short-term 50-day and 200-day SMA support levels.
• Stock is currently leaning towards the higher end of the 52-week range of USD 23.69 to USD 64.23.
• SKY’s stock price has risen 98.39% in the past twelve months, compared to 51.75% for the S&P 500 index and 48.50% for the S&P 500 Homebuilding sector.

Technical Price Chart (as of August 13, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the current share price adequately reflects the decent business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an “Expensive” rating on the stock at the closing price of USD 61.68, down 1.06% as of August 13, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Tecnoglass Inc.

Tecnoglass Inc. (NASDAQ: TGLS) manufactures architectural glass, windows, and associated aluminum products, serving the multi-family, single-family, and commercial end markets.

Key Highlights

• The company reported a surge of 48.54% in total revenue to USD 121.71 million in Q2FY21 (ended June 30, 2021) compared to USD 81.94 million in Q2FY20.
• Net income for Q2FY21 increased by 18.75% to USD 19.23 million from USD 16.20 million in Q2FY20.
• On July 30, 2021, the company paid a quarterly dividend of USD 0.0275 per share to shareholders of record on June 30, 2021.
• TGLS’ net margin for Q2FY21 was 15.8%, higher than the industry median of 9.0%.
• The Debt/Equity ratio as of Q2FY21 was 1.06x, making a significantly leveraged balance sheet. The peer median stood at 0.56x.
• Stock is currently trading above its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bullish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 4.21 to USD 26.00.
• TGLS’ share price has increased 36.52% and 208.10% in the past three and six months, respectively.

Technical Price Chart (as of August 13, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the current share price adequately reflects the robust business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an “Expensive” rating on the stock at the closing price of USD 22.43, down 2.48% as of August 13, 2021.

*The reference data in this report has been partly sourced from REFINITIV.