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. While SUI is still in line with the averages on profitability rating, there are concerns on its financial health. SUI has a correct valuation and a medium 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.
In the past 5 years SUI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.54%, SUI is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Equity of SUI (1.21%) is comparable to the rest of the industry.
The Return On Invested Capital of SUI (2.69%) is comparable to the rest of the industry.
SUI had an Average Return On Invested Capital over the past 3 years of 2.59%. This is in line with the industry average of 2.75%.
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 has a Profit Margin (2.76%) which is in line with 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 has a worse Gross Margin (47.43%) than 90.00% of its industry peers.
SUI's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SUI is destroying value.
The number of shares outstanding for SUI has been increased compared to 1 year ago.
The number of shares outstanding for SUI has been increased compared to 5 years ago.
Compared to 1 year ago, SUI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that SUI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.09, SUI perfoms like the industry average, outperforming 55.00% 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.
The Debt to Equity ratio of SUI (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.37
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.82 indicates that SUI may have some problems paying its short term obligations.
SUI has a better Current ratio (0.82) than 70.00% of its industry peers.
A Quick Ratio of 0.60 indicates that SUI may have some problems paying its short term obligations.
SUI's Quick ratio of 0.60 is fine compared to the rest of the industry. SUI outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
SUI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.21%.
SUI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.06% yearly.
SUI shows a decrease in Revenue. In the last year, the revenue decreased by -0.11%.
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)-34.21%
EPS 3Y-39.1%
EPS 5Y-16.06%
EPS Q2Q%-170.77%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%2.64%
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 37.58% on average per year.
Based on estimates for the next years, SUI will show a decrease in Revenue. The Revenue will decrease by -2.16% on average per year.
EPS Next Y272.35%
EPS Next 2Y108.56%
EPS Next 3Y70.26%
EPS Next 5Y37.58%
Revenue Next Year-16.94%
Revenue Next 2Y-9.14%
Revenue Next 3Y-6.97%
Revenue Next 5Y-2.16%
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
With a Price/Earnings ratio of 161.24, SUI can be considered very expensive at the moment.
SUI's Price/Earnings ratio is in line with the industry average.
SUI is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 43.30 indicates a quite expensive valuation of SUI.
SUI's Price/Forward Earnings ratio is rather cheap when compared to the industry. SUI is cheaper than 85.00% of the companies in the same industry.
SUI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.24 | ||
| Fwd PE | 43.3 |
4.2 Price Multiples
SUI's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 19.48 | ||
| EV/EBITDA | 19.03 |
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.
A more expensive valuation may be justified as SUI's earnings are expected to grow with 70.26% in the coming years.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y108.56%
EPS Next 3Y70.26%
5. Dividend
5.1 Amount
SUI has a Yearly Dividend Yield of 3.05%.
Compared to an average industry Dividend Yield of 4.58, SUI's dividend is way lower than its industry peers. On top of this 90.00% 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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 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 of SUI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP553.6%
EPS Next 2Y108.56%
EPS Next 3Y70.26%
NYSE:SUI (4/21/2025, 12:52:43 PM)
120.93
-2.38 (-1.93%)
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 Change0.06%
Ins Owners0.25%
Ins Owner Change2.69%
Market Cap15.43B
Analysts73.33
Price Target139.37 (15.25%)
Short Float %2.09%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend3.91
Dividend Growth(5Y)4.83%
DP553.6%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-946.11%
Min EPS beat(2)-1934.29%
Max EPS beat(2)42.06%
EPS beat(4)1
Avg EPS beat(4)-505.78%
Min EPS beat(4)-1934.29%
Max EPS beat(4)42.06%
EPS beat(8)1
Avg EPS beat(8)-365.09%
EPS beat(12)1
Avg EPS beat(12)-258.03%
EPS beat(16)4
Avg EPS beat(16)-186.32%
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)2.67%
PT rev (3m)2.5%
EPS NQ rev (1m)-5.88%
EPS NQ rev (3m)150%
EPS NY rev (1m)72.54%
EPS NY rev (3m)43.86%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-22.15%
Revenue NY rev (1m)-15.5%
Revenue NY rev (3m)-21.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.24 | ||
| Fwd PE | 43.3 | ||
| P/S | 4.79 | ||
| P/FCF | 19.48 | ||
| P/OCF | 17.92 | ||
| P/B | 2.1 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | 19.03 |
EPS(TTM)0.75
EY0.62%
EPS(NY)2.79
Fwd EY2.31%
FCF(TTM)6.21
FCFY5.13%
OCF(TTM)6.75
OCFY5.58%
SpS25.25
BVpS57.54
TBVpS50.56
PEG (NY)0.59
PEG (5Y)N/A
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 | 1.09 |
F-Score6
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)-34.21%
EPS 3Y-39.1%
EPS 5Y-16.06%
EPS Q2Q%-170.77%
EPS Next Y272.35%
EPS Next 2Y108.56%
EPS Next 3Y70.26%
EPS Next 5Y37.58%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%2.64%
Revenue Next Year-16.94%
Revenue Next 2Y-9.14%
Revenue Next 3Y-6.97%
Revenue Next 5Y-2.16%
EBIT growth 1Y-10.01%
EBIT growth 3Y3.38%
EBIT growth 5Y11.44%
EBIT Next Year72.52%
EBIT Next 3Y20.99%
EBIT Next 5Y14.03%
FCF growth 1Y7.46%
FCF growth 3YN/A
FCF growth 5Y187.98%
OCF growth 1Y8.92%
OCF growth 3Y4.54%
OCF growth 5Y12.55%