The Short Answer
Skyline Champion stock (SKY) is methodology-dependent on our current filing-based screen. Factory-built housing is generally permissible, and the March 28, 2026 filing shows low leverage. However, the examined MSCI receivables-plus-cash proxy is 34.10%, narrowly above its 33.33% limit.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-28; calculated 2026-07-15.
109.089 / 2,131.546
638.259 / 2,131.546
727.069 / 2,131.546
23.992 / 2,663.639
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 5.12%, liquidity is 29.94% and receivables plus cash is 34.10%, below examined FTSE limits; activity remains incomplete.
- Financial
- Fails
- Overall
- Fails
Receivables plus cash is 34.10%, above the examined MSCI 33.33% total-assets limit; debt and liquidity are below their limits.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 5.12% and liquidity is 29.94%, below the examined 33% limits; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored and activity classification remains incomplete.
Business-activity disclosure
Champion Homes manufactures manufactured and modular homes, park models, accessory dwelling units and modular buildings, with retail and logistics operations. Housing manufacturing is generally permissible, while financing and customer end uses require review.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for downstream financing, customer end uses or product categories.
Purification
Gross interest income is disclosed at $23.992 million, but no scholar-approved purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Champion Homes' March 28, 2026 Form 10-K.
- Debt combines $94.649 million floor-plan payable and $14.440 million long-term debt; operating liabilities are excluded.
- Cash is $638.259 million and no separately identified interest-bearing securities are added.
- Trade accounts receivable are $88.810 million and fiscal 2026 net sales are $2,663.639 million.
- Gross interest income is $23.992 million and interest expense is $7.548 million for fiscal 2026.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
What Skyline Champion Does
Skyline Champion Corporation (headquartered in Troy, Michigan) is one of the largest factory-built housing producers in North America. Its business includes:
- Manufactured and modular homes: Single-section and multi-section homes built in factories and delivered to sites, offering an affordable alternative to site-built housing.
- Park models and ADUs: Smaller dwellings and accessory dwelling units for a range of housing needs.
- Retail and logistics: A network of company-owned retail sales centers and a transportation-logistics operation supporting home delivery.
Skyline Champion helps make homeownership more affordable by building quality homes efficiently in factories. This is foundational, socially beneficial housing manufacturing.
Current Filing-Based Quantitative Screen
Based on Champion Homes' March 28, 2026 Form 10-K:
- Debt / Assets: 5.12% — below the examined limits ✅
- Liquidity / Assets: 29.94% — below the examined limits ✅
- Receivables + Cash / Assets: 34.10% — above the examined MSCI limit ❌
- Interest income: $23.992 million disclosed; no universal purification percentage inferred ⚠️
FTSE Yasaar and Malaysia asset proxies pass, while the examined MSCI total-assets proxy fails narrowly. Activity remains qualitative; no official index membership or scholar ruling is implied.
Concerns to Be Aware Of
1. Interest Income on a Sizable Cash Balance
Skyline Champion holds a large cash balance that earns interest. This is the main purification item for the stock.
Action required: Interest income is disclosed, but this article does not infer a universal purification percentage; obtain qualified guidance.
2. Third-Party Home Financing
Some buyers finance their homes through third-party lenders (conventional chattel or mortgage loans). Skyline Champion is a homebuilder, not a lender, so this is an indirect exposure that most scholars do not treat as a disqualifier. Muslim buyers should of course seek Sharia-compliant financing for their own purchases.
3. Housing Cyclicality
Demand for factory-built homes tracks the broader housing cycle and interest-rate environment. This is a business risk rather than a Sharia issue, but a reason to re-screen the ratios periodically.
Methodology Interpretation
The current result is METHODOLOGY-DEPENDENT: FTSE Yasaar and Malaysia asset proxies pass, while the examined MSCI receivables-plus-cash proxy fails. This is our filing-based analysis, not a third-party classification.
- FTSE Yasaar asset screen — financial pass
- MSCI total-assets proxy — financial fail on receivables plus cash
- Malaysia SAC asset ratios — financial pass
Bottom Line
Skyline Champion (SKY) is methodology-dependent on the current filing-based screen. Its housing business is generally permissible and leverage is low, but the examined MSCI receivables-plus-cash proxy fails narrowly.
Re-screen after the next filing and consult qualified guidance if your chosen methodology treats the MSCI receivables threshold as decisive.
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