SUN COMMUNITIES INC (SUI) Stock Fundamental Analysis
NYSE:SUI - New York Stock Exchange, Inc. - US8666741041 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to SUI. SUI was compared to 20 industry peers in the Residential REITs industry. SUI has only an average score on both its financial health and profitability. SUI is quite expensive at the moment. It does show a decent growth rate.
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.
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 0.45% is in line compared to the rest of the industry. SUI outperforms 45.00% of its industry peers.
SUI has a Return On Equity (1.03%) which is in line with its industry peers.
SUI has a Return On Invested Capital (2.64%) which is in line with 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 2.62%.
The last Return On Invested Capital (2.64%) for SUI is above the 3 year average (2.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.03% | ||
| ROIC | 2.64% |
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
With a Profit Margin value of 2.44%, SUI perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
SUI's Profit Margin has declined in the last couple of years.
SUI's Operating Margin of 17.82% is in line compared to the rest of the industry. SUI outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of SUI has declined.
Looking at the Gross Margin, with a value of 48.27%, 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 | 17.82% | ||
| PM (TTM) | 2.44% | ||
| GM | 48.27% |
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.
SUI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SUI has more shares outstanding
The debt/assets ratio for SUI has been reduced compared to a year ago.
2.2 Solvency
SUI has an Altman-Z score of 1.10. This is a bad value and indicates that SUI is not financially healthy and even has some risk of bankruptcy.
SUI's Altman-Z score of 1.10 is in line compared to the rest of the industry. SUI outperforms 55.00% of its industry peers.
The Debt to FCF ratio of SUI is 8.95, which is on the high side as it means it would take SUI, 8.95 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 8.95, SUI belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
SUI has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
SUI has a Debt to Equity ratio (1.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 8.95 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.37
WACC7.22%
2.3 Liquidity
SUI has a Current Ratio of 1.28. This is a normal value and indicates that SUI is financially healthy and should not expect problems in meeting its short term obligations.
SUI has a Current ratio of 1.28. This is amongst the best in the industry. SUI outperforms 85.00% of its industry peers.
A Quick Ratio of 0.84 indicates that SUI may have some problems paying its short term obligations.
SUI has a better Quick ratio (0.84) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for SUI have decreased strongly by -45.69% in the last 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.
The Revenue has decreased by -6.93% in the past year.
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)-45.69%
EPS 3Y-39.1%
EPS 5Y-16.06%
EPS Q2Q%-54.55%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%-29.96%
3.2 Future
SUI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.07% yearly.
The Revenue is expected to decrease by -1.84% on average over the next years.
EPS Next Y111.43%
EPS Next 2Y81.86%
EPS Next 3Y59.36%
EPS Next 5Y47.07%
Revenue Next Year-21.38%
Revenue Next 2Y-10.43%
Revenue Next 3Y-7.07%
Revenue Next 5Y-1.84%
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 quite expensively with a Price/Earnings ratio of 203.97.
SUI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.28, SUI is valued quite expensively.
Based on the Price/Forward Earnings ratio of 51.80, the valuation of SUI can be described as expensive.
65.00% of the companies in the same industry are more expensive than SUI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SUI to the average of the S&P500 Index (21.76), we can say SUI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 203.97 | ||
| Fwd PE | 51.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUI is valued a bit more expensive than 65.00% of the companies 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 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 19.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SUI's earnings are expected to grow with 59.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.83
PEG (5Y)N/A
EPS Next 2Y81.86%
EPS Next 3Y59.36%
5. Dividend
5.1 Amount
SUI has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.25, SUI pays less dividend than the industry average, which is at 4.72. 90.00% of the companies listed in the same industry pay a better dividend than SUI!
Compared to an average S&P500 Dividend Yield of 2.42, SUI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.83%
Div Incr Years9
Div Non Decr Years13
5.3 Sustainability
SUI pays out 674.86% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SUI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP674.86%
EPS Next 2Y81.86%
EPS Next 3Y59.36%
128.5
+0.78 (+0.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.68%
Inst Owner Change1.29%
Ins Owners0.3%
Ins Owner Change0.68%
Market Cap16.40B
Analysts75.56
Price Target139.13 (8.27%)
Short Float %1.59%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend3.91
Dividend Growth(5Y)4.83%
DP674.86%
Div Incr Years9
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1237.75%
Min EPS beat(2)-1934.29%
Max EPS beat(2)-541.21%
EPS beat(4)1
Avg EPS beat(4)-617.32%
Min EPS beat(4)-1934.29%
Max EPS beat(4)42.06%
EPS beat(8)1
Avg EPS beat(8)-331%
EPS beat(12)1
Avg EPS beat(12)-296.04%
EPS beat(16)3
Avg EPS beat(16)-221.02%
Revenue beat(2)1
Avg Revenue beat(2)-8.5%
Min Revenue beat(2)-19.26%
Max Revenue beat(2)2.26%
Revenue beat(4)1
Avg Revenue beat(4)-6.51%
Min Revenue beat(4)-19.26%
Max Revenue beat(4)2.26%
Revenue beat(8)4
Avg Revenue beat(8)-1.72%
Revenue beat(12)8
Avg Revenue beat(12)0.72%
Revenue beat(16)12
Avg Revenue beat(16)7.26%
PT rev (1m)0.07%
PT rev (3m)-0.17%
EPS NQ rev (1m)20.06%
EPS NQ rev (3m)-13.48%
EPS NY rev (1m)-3.98%
EPS NY rev (3m)-43.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.31%
Revenue NY rev (1m)-1.85%
Revenue NY rev (3m)-20.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 203.97 | ||
| Fwd PE | 51.8 | ||
| P/S | 5.43 | ||
| P/FCF | 19.94 | ||
| P/OCF | 19.02 | ||
| P/B | 2.29 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 19.64 |
EPS(TTM)0.63
EY0.49%
EPS(NY)2.48
Fwd EY1.93%
FCF(TTM)6.44
FCFY5.01%
OCF(TTM)6.76
OCFY5.26%
SpS23.66
BVpS56.14
TBVpS55.27
PEG (NY)1.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.03% | ||
| ROCE | 3.34% | ||
| ROIC | 2.64% | ||
| ROICexc | 2.65% | ||
| ROICexgc | 2.74% | ||
| OM | 17.82% | ||
| PM (TTM) | 2.44% | ||
| GM | 48.27% | ||
| FCFM | 27.24% |
ROA(3y)0.23%
ROA(5y)0.94%
ROE(3y)0.44%
ROE(5y)1.82%
ROIC(3y)2.59%
ROIC(5y)2.54%
ROICexc(3y)2.6%
ROICexc(5y)2.55%
ROICexgc(3y)2.88%
ROICexgc(5y)2.81%
ROCE(3y)3.28%
ROCE(5y)3.22%
ROICexcg growth 3Y-3.23%
ROICexcg growth 5Y-2.66%
ROICexc growth 3Y-3.43%
ROICexc growth 5Y-3.99%
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%
F-Score7
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 8.95 | ||
| Debt/EBITDA | 6.11 | ||
| Cap/Depr | 5.98% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 1.56 | ||
| Cash Conversion | 71.56% | ||
| Profit Quality | 1117.53% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.1 |
F-Score7
WACC7.22%
ROIC/WACC0.37
Cap/Depr(3y)133.62%
Cap/Depr(5y)248.94%
Cap/Sales(3y)26.11%
Cap/Sales(5y)58.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.69%
EPS 3Y-39.1%
EPS 5Y-16.06%
EPS Q2Q%-54.55%
EPS Next Y111.43%
EPS Next 2Y81.86%
EPS Next 3Y59.36%
EPS Next 5Y47.07%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%-29.96%
Revenue Next Year-21.38%
Revenue Next 2Y-10.43%
Revenue Next 3Y-7.07%
Revenue Next 5Y-1.84%
EBIT growth 1Y-9.26%
EBIT growth 3Y3.38%
EBIT growth 5Y11.44%
EBIT Next Year59.3%
EBIT Next 3Y18.66%
EBIT Next 5Y11.28%
FCF growth 1Y165.35%
FCF growth 3YN/A
FCF growth 5Y187.98%
OCF growth 1Y22.55%
OCF growth 3Y4.54%
OCF growth 5Y12.55%