SUN COMMUNITIES INC (SUI) Stock Fundamental Analysis
NYSE:SUI - New York Stock Exchange, Inc. - US8666741041 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to SUI. SUI was compared to 20 industry peers in the Residential REITs industry. SUI may be in some trouble as it scores bad on both profitability and health. SUI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SUI was profitable.
SUI had a positive operating cash flow in the past year.
Of the past 5 years SUI 4 years were profitable.
In the past 5 years SUI always reported a positive cash flow from operatings.
1.2 Ratios
SUI has a worse Return On Assets (-0.72%) than 75.00% of its industry peers.
SUI's Return On Equity of -1.59% is on the low side compared to the rest of the industry. SUI is outperformed by 75.00% of its industry peers.
SUI's Return On Invested Capital of 2.50% is in line compared to the rest of the industry. SUI outperforms 55.00% 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 2.61%.
| 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's Operating Margin of 16.25% is on the low side compared to the rest of the industry. SUI is outperformed by 60.00% of its industry peers.
In the last couple of years the Operating Margin of SUI has declined.
SUI has a Gross Margin of 47.21%. This is amonst the worse of the industry: SUI underperforms 90.00% of its industry peers.
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.
SUI has more shares outstanding than it did 1 year ago.
SUI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SUI has a worse debt to assets ratio.
2.2 Solvency
SUI has an Altman-Z score of 1.12. This is a bad value and indicates that SUI is not financially healthy and even has some risk of bankruptcy.
SUI has a Altman-Z score (1.12) which is comparable to the rest of the 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.
With an excellent Debt to FCF ratio value of 9.33, SUI belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that SUI is somewhat dependend on debt financing.
SUI has a Debt to Equity ratio (0.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 9.33 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.34
WACC7.36%
2.3 Liquidity
SUI has a Current 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.
The Current ratio of SUI (0.87) is better than 70.00% of its industry peers.
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.
With a Quick ratio value of 0.62, SUI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
SUI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.64%.
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%.
The Revenue has been growing by 23.40% on average over the past years. This is a very strong growth!
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 19.50% on average over the next years. This is quite good.
Based on estimates for the next years, SUI will show a small growth in Revenue. The Revenue will grow by 5.65% on average per year.
EPS Next Y103.99%
EPS Next 2Y23.01%
EPS Next 3Y16.78%
EPS Next 5Y19.5%
Revenue Next Year3.11%
Revenue Next 2Y2.62%
Revenue Next 3Y3.24%
Revenue Next 5Y5.65%
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
A Price/Earnings ratio of 68.04 indicates a quite expensive valuation of SUI.
SUI's Price/Earnings ratio is in line with the industry average.
SUI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.47.
A Price/Forward Earnings ratio of 73.36 indicates a quite expensive valuation of SUI.
SUI's Price/Forward Earnings is on the same level as the industry average.
SUI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.04 | ||
| Fwd PE | 73.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUI indicates a slightly more expensive valuation: SUI is more expensive than 65.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SUI indicates a rather cheap valuation: SUI is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.5 | ||
| EV/EBITDA | 20.12 |
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.
A more expensive valuation may be justified as SUI's earnings are expected to grow with 16.78% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y23.01%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
SUI has a Yearly Dividend Yield of 2.98%.
Compared to an average industry Dividend Yield of 4.28, SUI's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than SUI!
Compared to an average S&P500 Dividend Yield of 2.28, SUI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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.
The dividend of SUI decreased in the last 3 years.
Dividend Growth(5Y)5.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of SUI are negative and hence is the payout ratio. SUI will probably not be able to sustain this dividend level.
The dividend of SUI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-398.7%
EPS Next 2Y23.01%
EPS Next 3Y16.78%
SUN COMMUNITIES INC
NYSE:SUI (2/4/2025, 8:09:41 PM)
After market: 123.049 -3.51 (-2.77%)126.56
-0.02 (-0.02%)
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 Change-1.95%
Ins Owners1.22%
Ins Owner Change0.28%
Market Cap16.12B
Analysts73.33
Price Target133.62 (5.58%)
Short Float %1.98%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend3.84
Dividend Growth(5Y)5.57%
DP-398.7%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-1.73%
PT rev (3m)-10.56%
EPS NQ rev (1m)-58.7%
EPS NQ rev (3m)-16.17%
EPS NY rev (1m)4.09%
EPS NY rev (3m)21.83%
Revenue NQ rev (1m)-4.54%
Revenue NQ rev (3m)-7.07%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.04 | ||
| Fwd PE | 73.36 | ||
| P/S | 5.04 | ||
| P/FCF | 20.5 | ||
| P/OCF | 18.73 | ||
| P/B | 2.09 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 20.12 |
EPS(TTM)1.86
EY1.47%
EPS(NY)1.73
Fwd EY1.36%
FCF(TTM)6.17
FCFY4.88%
OCF(TTM)6.76
OCFY5.34%
SpS25.13
BVpS60.59
TBVpS52.01
PEG (NY)0.65
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 | 1.12 |
F-Score4
WACC7.36%
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 Y103.99%
EPS Next 2Y23.01%
EPS Next 3Y16.78%
EPS Next 5Y19.5%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y32.12%
Revenue growth 5Y23.4%
Sales Q2Q%-4.4%
Revenue Next Year3.11%
Revenue Next 2Y2.62%
Revenue Next 3Y3.24%
Revenue Next 5Y5.65%
EBIT growth 1Y-14.27%
EBIT growth 3Y26.96%
EBIT growth 5Y17.99%
EBIT Next Year118.86%
EBIT Next 3Y33.75%
EBIT Next 5Y23.36%
FCF growth 1Y140.6%
FCF growth 3YN/A
FCF growth 5Y76.7%
OCF growth 1Y14.43%
OCF growth 3Y13.32%
OCF growth 5Y16.84%