SUN COMMUNITIES INC (SUI) Stock Fundamental Analysis
NYSE:SUI - New York Stock Exchange, Inc. - US8666741041 - REIT - Currency: USD
SUI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. There are concerns on the financial health of SUI while its profitability can be described as average. SUI is valied quite expensively at the moment, while 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.
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
SUI has a Return On Assets (0.54%) which is in line with its industry peers.
SUI's Return On Equity of 1.21% is in line compared to the rest of the industry. SUI outperforms 55.00% of its industry peers.
SUI has a Return On Invested Capital of 2.69%. This is comparable 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 2.76%.
The last Return On Invested Capital (2.69%) for SUI is above the 3 year average (2.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.21% | ||
| ROIC | 2.69% |
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's Profit Margin of 2.76% 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 Profit Margin of SUI has declined.
With a Operating Margin value of 16.87%, SUI is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of SUI has declined.
SUI's Gross Margin of 47.43% 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 | 16.87% | ||
| PM (TTM) | 2.76% | ||
| GM | 47.43% |
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
SUI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SUI has more shares outstanding
Compared to 5 years ago, SUI has more shares outstanding
SUI has a better debt/assets ratio than last year.
2.2 Solvency
SUI has an Altman-Z score of 1.17. This is a bad value and indicates that SUI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.17, SUI is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of SUI is 9.30, which is on the high side as it means it would take SUI, 9.30 years of fcf income to pay off all of its debts.
SUI's Debt to FCF ratio of 9.30 is amongst the best of the industry. SUI outperforms 90.00% of its industry peers.
SUI has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.00, SUI is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.37
WACC7.3%
2.3 Liquidity
SUI has a Current Ratio of 0.82. 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 better Current ratio (0.82) than 70.00% of its industry peers.
SUI has a Quick Ratio of 0.82. 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 decent Quick ratio value of 0.60, SUI is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 243.86% over the past year.
Measured over the past years, SUI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.84% on average per year.
The Revenue has decreased by -0.11% in the past year.
SUI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.57% yearly.
EPS 1Y (TTM)243.86%
EPS 3Y5.69%
EPS 5Y16.84%
EPS Q2Q%316.92%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%2.64%
3.2 Future
SUI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.96% yearly.
SUI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.06% yearly.
EPS Next Y-58.71%
EPS Next 2Y-31.95%
EPS Next 3Y-16.31%
EPS Next 5Y-4.96%
Revenue Next Year-4.35%
Revenue Next 2Y-0.99%
Revenue Next 3Y5.14%
Revenue Next 5Y6.06%
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 decreasing.
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
SUI is valuated quite expensively with a Price/Earnings ratio of 34.09.
Based on the Price/Earnings ratio, SUI is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
SUI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 82.56 indicates a quite expensive valuation of SUI.
The rest of the industry has a similar Price/Forward Earnings ratio as SUI.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, SUI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.09 | ||
| Fwd PE | 82.56 |
4.2 Price Multiples
SUI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SUI is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.49 | ||
| EV/EBITDA | 20.1 |
4.3 Compensation for Growth
A cheap valuation may be justified as SUI's earnings are expected to decrease with -16.31% in the coming years.
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y-31.95%
EPS Next 3Y-16.31%
5. Dividend
5.1 Amount
SUI has a Yearly Dividend Yield of 2.86%.
Compared to an average industry Dividend Yield of 4.16, SUI's dividend is way lower than its industry peers. On top of this 85.00% of the companies listed in the same industry pay a better dividend than SUI!
SUI's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.83%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SUI pays out 553.60% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of SUI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP553.6%
EPS Next 2Y-31.95%
EPS Next 3Y-16.31%
133.63
+2.27 (+1.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.47%
Inst Owner Change6.17%
Ins Owners0.25%
Ins Owner Change-0.51%
Market Cap17.02B
Analysts72.94
Price Target135.75 (1.59%)
Short Float %1.99%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend3.91
Dividend Growth(5Y)4.83%
DP553.6%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)705.79%
Min EPS beat(2)42.06%
Max EPS beat(2)1369.52%
EPS beat(4)2
Avg EPS beat(4)320.17%
Min EPS beat(4)-95.06%
Max EPS beat(4)1369.52%
EPS beat(8)2
Avg EPS beat(8)47.89%
EPS beat(12)2
Avg EPS beat(12)17.28%
EPS beat(16)5
Avg EPS beat(16)20.16%
Revenue beat(2)1
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)2.26%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-5.08%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)1.14%
Revenue beat(12)9
Avg Revenue beat(12)3.11%
Revenue beat(16)13
Avg Revenue beat(16)11.52%
PT rev (1m)1.59%
PT rev (3m)-1.64%
EPS NQ rev (1m)83.93%
EPS NQ rev (3m)90.63%
EPS NY rev (1m)-6.18%
EPS NY rev (3m)-22.36%
Revenue NQ rev (1m)-3.28%
Revenue NQ rev (3m)-5.35%
Revenue NY rev (1m)-6.5%
Revenue NY rev (3m)-8.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.09 | ||
| Fwd PE | 82.56 | ||
| P/S | 5.28 | ||
| P/FCF | 21.49 | ||
| P/OCF | 19.77 | ||
| P/B | 2.32 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 20.1 |
EPS(TTM)3.92
EY2.93%
EPS(NY)1.62
Fwd EY1.21%
FCF(TTM)6.22
FCFY4.65%
OCF(TTM)6.76
OCFY5.06%
SpS25.29
BVpS57.63
TBVpS50.65
PEG (NY)N/A
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.21% | ||
| ROCE | 3.41% | ||
| ROIC | 2.69% | ||
| ROICexc | 2.7% | ||
| ROICexgc | 2.96% | ||
| OM | 16.87% | ||
| PM (TTM) | 2.76% | ||
| GM | 47.43% | ||
| FCFM | 24.59% |
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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 9.3 | ||
| Debt/EBITDA | 6.09 | ||
| Cap/Depr | 10.31% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 71.13% | ||
| Profit Quality | 890.11% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.17 |
F-Score6
WACC7.3%
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)243.86%
EPS 3Y5.69%
EPS 5Y16.84%
EPS Q2Q%316.92%
EPS Next Y-58.71%
EPS Next 2Y-31.95%
EPS Next 3Y-16.31%
EPS Next 5Y-4.96%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%2.64%
Revenue Next Year-4.35%
Revenue Next 2Y-0.99%
Revenue Next 3Y5.14%
Revenue Next 5Y6.06%
EBIT growth 1Y-10.01%
EBIT growth 3Y3.38%
EBIT growth 5Y11.44%
EBIT Next Year88.32%
EBIT Next 3Y28.03%
EBIT Next 5Y20.12%
FCF growth 1Y7.46%
FCF growth 3YN/A
FCF growth 5Y187.98%
OCF growth 1Y8.92%
OCF growth 3Y4.54%
OCF growth 5Y12.55%