While Skyline Champion Corporation (NYSE:SKY) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let's examine Skyline Champion's valuation and outlook in more detail to determine if there's still a bargain opportunity.

Check out our latest analysis for Skyline Champion

Is Skyline Champion Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It's trading around 0.04% below my intrinsic value, which means if you buy Skyline Champion today, you'd be paying a reasonable price for it. And if you believe the company's true value is $63.27, then there's not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Skyline Champion's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Skyline Champion look like?

Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. However, with a relatively muted profit growth of 5.3% expected over the next year, growth doesn't seem like a key driver for a buy decision for Skyline Champion, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in SKY's future outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you've been keeping an eye on SKY, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, Skyline Champion has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

If you are no longer interested in Skyline Champion, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.