SUN COMMUNITIES INC (SUI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SUI - US8666741041 - REIT
125.57 USD
+0.59 (+0.47%)
125.57 USD
0 (0%)
Overall SUI gets a fundamental rating of 6 out of 10. We evaluated SUI against 20 industry peers in the Residential REITs industry. While SUI has a great health rating, its profitability is only average at the moment. SUI is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make SUI suitable for value investing!
1. Profitability
1.1 Basic Checks
- SUI had positive earnings in the past year.
- In the past year SUI had a positive cash flow from operations.
- SUI had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years SUI had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 7.93%, SUI belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
- The Return On Equity of SUI (14.02%) is better than 85.00% of its industry peers.
- SUI has a Return On Invested Capital of 3.27%. This is in the better half of the industry: SUI outperforms 70.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SUI is in line with the industry average of 2.59%.
- The last Return On Invested Capital (3.27%) for SUI is above the 3 year average (2.59%), which is a sign of increasing profitability.
| 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 better Profit Margin (40.01%) than 90.00% of its industry peers.
- SUI's Profit Margin has declined in the last couple of years.
- SUI has a Operating Margin of 20.13%. This is comparable to the rest of the industry: SUI outperforms 60.00% of its industry peers.
- In the last couple of years the Operating Margin of SUI has declined.
- SUI's Gross Margin of 51.83% is on the low side compared to the rest of the industry. SUI is outperformed by 90.00% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SUI is destroying value.
- Compared to 1 year ago, SUI has more shares outstanding
- 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
- SUI has an Altman-Z score of 1.83. This is not the best score and indicates that SUI is in the grey zone with still only limited risk for bankruptcy at the moment.
- SUI has a better Altman-Z score (1.83) than 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.
- SUI has a Debt to Equity ratio of 0.59. This is amongst the best in the industry. SUI outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.46
WACC7.15%
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.
- SUI's Current ratio of 3.59 is amongst the best of the industry. SUI outperforms 95.00% of its industry peers.
- A Quick Ratio of 3.24 indicates that SUI has no problem at all paying its short term obligations.
- SUI has a better Quick ratio (3.24) than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 329.57% over the past year.
- SUI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.06% yearly.
- Looking at the last year, SUI shows a very negative growth in Revenue. The Revenue has decreased by -20.77% in the last year.
- The Revenue has been growing by 20.57% on average over the past years. This is a very strong growth!
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
- Based on estimates for the next years, SUI will show a very strong growth in Earnings Per Share. The EPS will grow by 35.33% on average per year.
- SUI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.90% yearly.
EPS Next Y1423.98%
EPS Next 2Y94.7%
EPS Next 3Y65.81%
EPS Next 5Y35.33%
Revenue Next Year-26.67%
Revenue Next 2Y-12.22%
Revenue Next 3Y-6.91%
Revenue Next 5Y-1.9%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- SUI is valuated correctly with a Price/Earnings ratio of 15.72.
- SUI's Price/Earnings ratio is rather cheap when compared to the industry. SUI is cheaper than 95.00% of the companies in the same industry.
- SUI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- Based on the Price/Forward Earnings ratio of 44.17, the valuation of SUI can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SUI indicates a somewhat cheap valuation: SUI is cheaper than 65.00% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. SUI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 44.17 |
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.
- Based on the Price/Free Cash Flow ratio, SUI is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19 | ||
| EV/EBITDA | 15.82 |
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.
- The decent profitability rating of SUI may justify a higher PE ratio.
- A more expensive valuation may be justified as SUI's earnings are expected to grow with 65.81% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y94.7%
EPS Next 3Y65.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.27%, SUI has a reasonable but not impressive dividend return.
- With a Dividend Yield of 3.27, SUI pays less dividend than the industry average, which is at 30.96. 90.00% 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 | 3.27% |
5.2 History
- The dividend of SUI has a limited annual growth rate of 4.83%.
- SUI has been paying a dividend for at least 10 years, so it has 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
- SUI pays out 101.93% of its income as dividend. 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 2Y94.7%
EPS Next 3Y65.81%
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 1423.98% in the next year.