SUN COMMUNITIES INC (SUI) Stock Fundamental Analysis
NYSE:SUI - New York Stock Exchange, Inc. - US8666741041 - REIT - Currency: USD
Overall SUI gets a fundamental rating of 4 out of 10. We evaluated SUI against 20 industry peers in the Residential REITs industry. SUI has only an average score on both its financial health and profitability. SUI has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years SUI had a positive operating cash flow.
1.2 Ratios
SUI has a Return On Assets (0.45%) which is comparable to the rest of the industry.
SUI has a Return On Equity of 1.03%. This is comparable to the rest of the industry: SUI outperforms 55.00% of its industry peers.
The Return On Invested Capital of SUI (2.64%) is comparable to the rest of the industry.
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 3 year average ROIC (2.59%) for SUI is below the current ROIC(2.64%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 2.44%, SUI is in line with its industry, outperforming 45.00% of the companies in the same industry.
SUI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.82%, SUI is in line with its industry, outperforming 50.00% of the companies in the same industry.
SUI's Operating Margin has declined in the last couple of years.
SUI has a worse Gross Margin (48.27%) than 90.00% of its industry peers.
SUI's Gross Margin has declined in the last couple of years.
| 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.
SUI has more shares outstanding than it did 5 years ago.
SUI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that SUI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, SUI is in line with its industry, outperforming 55.00% of the companies in the same industry.
SUI has a debt to FCF ratio of 8.95. This is a slightly negative value and a sign of low solvency as SUI would need 8.95 years to pay back of all of its debts.
SUI has a Debt to FCF ratio of 8.95. This is amongst the best in the industry. SUI outperforms 90.00% of its industry peers.
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 | 1.06 |
ROIC/WACC0.36
WACC7.36%
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 better Current ratio (1.28) than 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's Quick ratio of 0.84 is fine compared to the rest of the industry. SUI outperforms 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.
The Revenue has been growing by 20.57% on average over the past years. This is a very strong growth!
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.02% yearly.
The Revenue is expected to decrease by -1.42% on average over the next years.
EPS Next Y120.18%
EPS Next 2Y85.49%
EPS Next 3Y64.24%
EPS Next 5Y12.02%
Revenue Next Year-24.31%
Revenue Next 2Y-12.04%
Revenue Next 3Y-7.07%
Revenue Next 5Y-1.42%
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
The Price/Earnings ratio is 195.44, which means the current valuation is very expensive for SUI.
The rest of the industry has a similar Price/Earnings ratio as SUI.
The average S&P500 Price/Earnings ratio is at 26.57. SUI is valued rather expensively when compared to this.
SUI is valuated quite expensively with a Price/Forward Earnings ratio of 47.71.
75.00% of the companies in the same industry are more expensive than SUI, based on the Price/Forward Earnings ratio.
SUI is valuated expensively when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 195.44 | ||
| Fwd PE | 47.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUI is on the same level as its industry peers.
SUI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SUI is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.11 | ||
| EV/EBITDA | 19.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SUI's earnings are expected to grow with 64.24% in the coming years.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y85.49%
EPS Next 3Y64.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.31%, SUI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.54, 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!
SUI's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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 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
674.86% of the earnings are spent on dividend by SUI. This is not a sustainable payout ratio.
SUI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP674.86%
EPS Next 2Y85.49%
EPS Next 3Y64.24%
123.13
-0.48 (-0.39%)
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 Change0.7%
Market Cap15.72B
Analysts75.56
Price Target139.45 (13.25%)
Short Float %2.1%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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)0.3%
PT rev (3m)2.73%
EPS NQ rev (1m)20.06%
EPS NQ rev (3m)-13.48%
EPS NY rev (1m)0%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)-1.25%
Revenue NQ rev (3m)-12.31%
Revenue NY rev (1m)-5.5%
Revenue NY rev (3m)-23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 195.44 | ||
| Fwd PE | 47.71 | ||
| P/S | 5.2 | ||
| P/FCF | 19.11 | ||
| P/OCF | 18.22 | ||
| P/B | 2.19 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 19.07 |
EPS(TTM)0.63
EY0.51%
EPS(NY)2.58
Fwd EY2.1%
FCF(TTM)6.44
FCFY5.23%
OCF(TTM)6.76
OCFY5.49%
SpS23.66
BVpS56.14
TBVpS55.27
PEG (NY)1.63
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 | 1.06 |
F-Score7
WACC7.36%
ROIC/WACC0.36
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 Y120.18%
EPS Next 2Y85.49%
EPS Next 3Y64.24%
EPS Next 5Y12.02%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%-29.96%
Revenue Next Year-24.31%
Revenue Next 2Y-12.04%
Revenue Next 3Y-7.07%
Revenue Next 5Y-1.42%
EBIT growth 1Y-9.26%
EBIT growth 3Y3.38%
EBIT growth 5Y11.44%
EBIT Next Year59.3%
EBIT Next 3Y18.66%
EBIT Next 5Y12.51%
FCF growth 1Y165.35%
FCF growth 3YN/A
FCF growth 5Y187.98%
OCF growth 1Y22.55%
OCF growth 3Y4.54%
OCF growth 5Y12.55%