SUN COMMUNITIES INC (SUI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SUI - US8666741041 - REIT
125.723 USD
-1.32 (-1.04%)
Overall SUI gets a fundamental rating of 6 out of 10. We evaluated SUI against 20 industry peers in the Residential REITs industry. SUI has an excellent financial health rating, but there are some minor concerns on its profitability. SUI may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, SUI could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- SUI had positive earnings in the past year.
- SUI had a positive operating cash flow in the past year.
- Of the past 5 years SUI 4 years were profitable.
- Each year in the past 5 years SUI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SUI (7.93%) is better than 95.00% of its industry peers.
- SUI has a better Return On Equity (14.02%) than 85.00% of its industry peers.
- The Return On Invested Capital of SUI (3.27%) is better than 70.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SUI is in line with the industry average of 2.59%.
- The 3 year average ROIC (2.59%) for SUI is below the current ROIC(3.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 14.02% | ||
| ROIC | 3.27% |
ROA(3y)0.23%
ROA(5y)0.94%
ROE(3y)0.44%
ROE(5y)1.82%
ROIC(3y)2.59%
ROIC(5y)2.54%
1.3 Margins
- SUI has a Profit Margin of 40.01%. This is amongst the best in the industry. SUI outperforms 90.00% of its industry peers.
- SUI's Profit Margin has declined in the last couple of years.
- SUI has a Operating Margin (20.13%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of SUI has declined.
- With a Gross Margin value of 51.83%, SUI is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of SUI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.13% | ||
| PM (TTM) | 40.01% | ||
| GM | 51.83% |
OM growth 3Y-7.97%
OM growth 5Y-7.58%
PM growth 3Y-45.13%
PM growth 5Y-26.27%
GM growth 3Y-3.01%
GM growth 5Y-3.96%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SUI is destroying value.
- SUI has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SUI has more shares outstanding
- Compared to 1 year ago, SUI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.85 indicates that SUI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SUI's Altman-Z score of 1.85 is amongst the best of the industry. SUI outperforms 95.00% of its industry peers.
- The Debt to FCF ratio of SUI is 5.24, which is a neutral value as it means it would take SUI, 5.24 years of fcf income to pay off all of its debts.
- SUI's Debt to FCF ratio of 5.24 is amongst the best of the industry. SUI outperforms 100.00% of its industry peers.
- SUI has a Debt/Equity ratio of 0.59. This is a neutral value indicating SUI is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.59, SUI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.46
WACC7.14%
2.3 Liquidity
- SUI has a Current Ratio of 3.59. This indicates that SUI is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 3.59, SUI belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
- SUI has a Quick Ratio of 3.24. This indicates that SUI is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 3.24, SUI belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
- SUI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 329.57%, which is quite impressive.
- Measured over the past years, SUI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.06% on average per year.
- The Revenue for SUI has decreased by -20.77% in the past year. This is quite bad
- Measured over the past years, SUI shows a very strong growth in Revenue. The Revenue has been growing by 20.57% on average per year.
EPS 1Y (TTM)329.57%
EPS 3Y-39.1%
EPS 5Y-16.06%
EPS Q2Q%-96.97%
Revenue 1Y (TTM)-20.77%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%-25.82%
3.2 Future
- SUI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.33% yearly.
- The Revenue is expected to decrease by -1.90% on average over the next years.
EPS Next Y1334.2%
EPS Next 2Y99.8%
EPS Next 3Y65.96%
EPS Next 5Y35.33%
Revenue Next Year-27.24%
Revenue Next 2Y-12.6%
Revenue Next 3Y-7.19%
Revenue Next 5Y-1.9%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 15.74, the valuation of SUI can be described as correct.
- Based on the Price/Earnings ratio, SUI is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
- SUI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- SUI is valuated quite expensively with a Price/Forward Earnings ratio of 41.99.
- Based on the Price/Forward Earnings ratio, SUI is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- SUI is valuated expensively when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 41.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SUI is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
- SUI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SUI is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.02 | ||
| EV/EBITDA | 15.97 |
4.3 Compensation for Growth
- SUI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SUI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as SUI's earnings are expected to grow with 65.96% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y99.8%
EPS Next 3Y65.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.31%, SUI has a reasonable but not impressive dividend return.
- With a Dividend Yield of 3.31, SUI pays less dividend than the industry average, which is at 32.02. 85.00% of the companies listed in the same industry pay a better dividend than SUI!
- SUI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
- The dividend of SUI has a limited annual growth rate of 4.83%.
- SUI has paid a dividend for at least 10 years, which is a reliable track record.
- SUI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.83%
Div Incr Years9
Div Non Decr Years13
5.3 Sustainability
- 101.93% of the earnings are spent on dividend by SUI. This is not a sustainable payout ratio.
- SUI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.93%
EPS Next 2Y99.8%
EPS Next 3Y65.96%
SUN COMMUNITIES INC / SUI FAQ
What is the ChartMill fundamental rating of SUN COMMUNITIES INC (SUI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SUI.
What is the valuation status for SUI stock?
ChartMill assigns a valuation rating of 7 / 10 to SUN COMMUNITIES INC (SUI). This can be considered as Undervalued.
Can you provide the profitability details for SUN COMMUNITIES INC?
SUN COMMUNITIES INC (SUI) has a profitability rating of 6 / 10.
Can you provide the financial health for SUI stock?
The financial health rating of SUN COMMUNITIES INC (SUI) is 7 / 10.
Can you provide the expected EPS growth for SUI stock?
The Earnings per Share (EPS) of SUN COMMUNITIES INC (SUI) is expected to grow by 1334.2% in the next year.