SUN COMMUNITIES INC (SUI)
US8666741041 - REIT
SUI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. SUI may be in some trouble as it scores bad on both profitability and health. SUI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SUI was profitable.
In the past year SUI had a positive cash flow from operations.
SUI had positive earnings in 4 of the past 5 years.
SUI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SUI's Return On Assets of -0.72% is on the low side compared to the rest of the industry. SUI is outperformed by 75.00% of its industry peers.
Looking at the Return On Equity, with a value of -1.59%, SUI is doing worse than 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.50%, SUI is in line with its industry, outperforming 55.00% of the companies in the same industry.
SUI had an Average Return On Invested Capital over the past 3 years of 2.85%. This is in line with the industry average of 2.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.72% | ||
| ROE | -1.59% | ||
| ROIC | 2.5% |
ROA(3y)0.99%
ROA(5y)1.24%
ROE(3y)1.87%
ROE(5y)2.41%
ROIC(3y)2.85%
ROIC(5y)2.75%
1.3 Margins
SUI has a Operating Margin of 16.25%. This is in the lower half of the industry: SUI underperforms 60.00% of its industry peers.
SUI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 47.21%, SUI is doing worse than 90.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SUI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.25% | ||
| PM (TTM) | N/A | ||
| GM | 47.21% |
OM growth 3Y-3.91%
OM growth 5Y-4.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.81%
GM growth 5Y-3.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SUI is destroying value.
The number of shares outstanding for SUI has been increased compared to 1 year ago.
The number of shares outstanding for SUI has been increased compared to 5 years ago.
SUI has a worse debt/assets ratio than last year.
2.2 Solvency
SUI has an Altman-Z score of 1.11. This is a bad value and indicates that SUI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.11, SUI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SUI has a debt to FCF ratio of 9.33. This is a negative value and a sign of low solvency as SUI would need 9.33 years to pay back of all of its debts.
The Debt to FCF ratio of SUI (9.33) is better than 95.00% of its industry peers.
SUI has a Debt/Equity ratio of 0.95. This is a neutral value indicating SUI is somewhat dependend on debt financing.
SUI has a Debt to Equity ratio (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 9.33 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.34
WACC7.38%
2.3 Liquidity
A Current Ratio of 0.87 indicates that SUI may have some problems paying its short term obligations.
With a decent Current ratio value of 0.87, SUI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
SUI has a Quick Ratio of 0.87. This is a bad value and indicates that SUI is not financially healthy enough and could expect problems in meeting its short term obligations.
SUI has a Quick ratio of 0.62. This is comparable to the rest of the industry: SUI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.64% over the past year.
Measured over the past years, SUI shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.59% on average per year.
SUI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.94%.
SUI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.40% yearly.
EPS 1Y (TTM)1.64%
EPS 3Y-7.7%
EPS 5Y-2.59%
EPS Q2Q%76.34%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y32.12%
Revenue growth 5Y23.4%
Sales Q2Q%-4.4%
3.2 Future
The Earnings Per Share is expected to grow by 17.33% on average over the next years. This is quite good.
SUI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.02% yearly.
EPS Next Y95.98%
EPS Next 2Y30.49%
EPS Next 3Y23.24%
EPS Next 5Y17.33%
Revenue Next Year3.86%
Revenue Next 2Y3.13%
Revenue Next 3Y3.72%
Revenue Next 5Y5.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 67.04, which means the current valuation is very expensive for SUI.
The rest of the industry has a similar Price/Earnings ratio as SUI.
Compared to an average S&P500 Price/Earnings ratio of 27.54, SUI is valued quite expensively.
SUI is valuated quite expensively with a Price/Forward Earnings ratio of 64.23.
SUI's Price/Forward Earnings is on the same level as the industry average.
SUI is valuated expensively when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.04 | ||
| Fwd PE | 64.23 |
4.2 Price Multiples
SUI's Enterprise Value to EBITDA ratio is in line with the industry average.
SUI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SUI is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.19 | ||
| EV/EBITDA | 19.98 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SUI's earnings are expected to grow with 23.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y30.49%
EPS Next 3Y23.24%
5. Dividend
5.1 Amount
SUI has a Yearly Dividend Yield of 3.14%.
SUI's Dividend Yield is slightly below the industry average, which is at 4.11.
Compared to an average S&P500 Dividend Yield of 2.36, SUI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
The dividend of SUI has a limited annual growth rate of 5.57%.
SUI has been paying a dividend for at least 10 years, so it has a reliable track record.
SUI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SUI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of SUI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-398.7%
EPS Next 2Y30.49%
EPS Next 3Y23.24%
SUN COMMUNITIES INC
NYSE:SUI (12/26/2024, 12:58:57 PM)
124.694
-0.63 (-0.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.35%
Inst Owner Change1.52%
Ins Owners1.22%
Ins Owner Change1.88%
Market Cap15.88B
Analysts73.33
Price Target138.01 (10.68%)
Short Float %1.44%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Dividend Growth(5Y)5.57%
DP-398.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.12%
Min EPS beat(2)-35.83%
Max EPS beat(2)42.06%
EPS beat(4)1
Avg EPS beat(4)-39.77%
Min EPS beat(4)-95.06%
Max EPS beat(4)42.06%
EPS beat(8)1
Avg EPS beat(8)-130.97%
EPS beat(12)1
Avg EPS beat(12)-101.55%
EPS beat(16)5
Avg EPS beat(16)-55.18%
Revenue beat(2)0
Avg Revenue beat(2)-4.52%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)-3.95%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-5.08%
Max Revenue beat(4)7.52%
Revenue beat(8)5
Avg Revenue beat(8)1.02%
Revenue beat(12)9
Avg Revenue beat(12)3.74%
Revenue beat(16)13
Avg Revenue beat(16)14.69%
PT rev (1m)-7.62%
PT rev (3m)-2.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)102.95%
EPS NY rev (1m)13.79%
EPS NY rev (3m)12.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.65%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.04 | ||
| Fwd PE | 64.23 | ||
| P/S | 4.96 | ||
| P/FCF | 20.19 | ||
| P/OCF | 18.46 | ||
| P/B | 2.06 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 19.98 |
EPS(TTM)1.86
EY1.49%
EPS(NY)1.94
Fwd EY1.56%
FCF(TTM)6.17
FCFY4.95%
OCF(TTM)6.76
OCFY5.42%
SpS25.13
BVpS60.59
TBVpS52.01
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.72% | ||
| ROE | -1.59% | ||
| ROCE | 3.17% | ||
| ROIC | 2.5% | ||
| ROICexc | 2.52% | ||
| ROICexgc | 2.78% | ||
| OM | 16.25% | ||
| PM (TTM) | N/A | ||
| GM | 47.21% | ||
| FCFM | 24.57% |
ROA(3y)0.99%
ROA(5y)1.24%
ROE(3y)1.87%
ROE(5y)2.41%
ROIC(3y)2.85%
ROIC(5y)2.75%
ROICexc(3y)2.86%
ROICexc(5y)2.77%
ROICexgc(3y)3.16%
ROICexgc(5y)3%
ROCE(3y)3.61%
ROCE(5y)3.49%
ROICexcg growth 3Y11.03%
ROICexcg growth 5Y-0.32%
ROICexc growth 3Y10.75%
ROICexc growth 5Y-1.54%
OM growth 3Y-3.91%
OM growth 5Y-4.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.81%
GM growth 5Y-3.65%
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 9.33 | ||
| Debt/EBITDA | 6.31 | ||
| Cap/Depr | 11.53% | ||
| Cap/Sales | 2.31% | ||
| Interest Coverage | 1.48 | ||
| Cash Conversion | 74.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.11 |
F-Score4
WACC7.38%
ROIC/WACC0.34
Cap/Depr(3y)237.41%
Cap/Depr(5y)276.9%
Cap/Sales(3y)49.58%
Cap/Sales(5y)65.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.64%
EPS 3Y-7.7%
EPS 5Y-2.59%
EPS Q2Q%76.34%
EPS Next Y95.98%
EPS Next 2Y30.49%
EPS Next 3Y23.24%
EPS Next 5Y17.33%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y32.12%
Revenue growth 5Y23.4%
Sales Q2Q%-4.4%
Revenue Next Year3.86%
Revenue Next 2Y3.13%
Revenue Next 3Y3.72%
Revenue Next 5Y5.02%
EBIT growth 1Y-14.27%
EBIT growth 3Y26.96%
EBIT growth 5Y17.99%
EBIT Next Year121.98%
EBIT Next 3Y33.82%
EBIT Next 5Y23.54%
FCF growth 1Y140.6%
FCF growth 3YN/A
FCF growth 5Y76.7%
OCF growth 1Y14.43%
OCF growth 3Y13.32%
OCF growth 5Y16.84%