SUN COMMUNITIES INC (SUI) Stock Fundamental Analysis
NYSE:SUI - New York Stock Exchange, Inc. - US8666741041 - REIT - Currency: USD
Taking everything into account, SUI scores 6 out of 10 in our fundamental rating. SUI was compared to 20 industry peers in the Residential REITs industry. SUI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SUI may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SUI suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SUI was profitable.
SUI had a positive operating cash flow in the past year.
Of the past 5 years SUI 4 years were profitable.
SUI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SUI has a better Return On Assets (9.69%) than 100.00% of its industry peers.
SUI's Return On Equity of 16.89% is amongst the best of the industry. SUI outperforms 95.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.13%, SUI is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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(3.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 16.89% | ||
| ROIC | 3.13% |
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 46.59% is amongst the best of the industry. SUI outperforms 100.00% of its industry peers.
SUI's Profit Margin has declined in the last couple of years.
SUI has a Operating Margin of 18.46%. This is comparable to the rest of the industry: SUI outperforms 50.00% of its industry peers.
SUI's Operating Margin has declined in the last couple of years.
The Gross Margin of SUI (49.70%) is worse than 90.00% of its industry peers.
SUI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.46% | ||
| PM (TTM) | 46.59% | ||
| GM | 49.7% |
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
SUI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.89 indicates that SUI is not a great score, but indicates only limited risk for bankruptcy at the moment.
SUI has a better Altman-Z score (1.89) than 90.00% of its industry peers.
The Debt to FCF ratio of SUI is 5.45, which is a neutral value as it means it would take SUI, 5.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.45, SUI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SUI has a Debt/Equity ratio of 0.56. This is a neutral value indicating SUI is somewhat dependend on debt financing.
The Debt to Equity ratio of SUI (0.56) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.44
WACC7.2%
2.3 Liquidity
SUI has a Current Ratio of 4.21. This indicates that SUI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.21, SUI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 3.81 indicates that SUI has no problem at all paying its short term obligations.
SUI's Quick ratio of 3.81 is amongst the best of the industry. SUI outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.81 |
3. Growth
3.1 Past
SUI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1089.53%, which is quite impressive.
Measured over the past years, SUI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.06% on average per year.
The Revenue for SUI has decreased by -14.35% in the past year. This is quite bad
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)1089.53%
EPS 3Y-39.1%
EPS 5Y-16.06%
EPS Q2Q%2285.71%
Revenue 1Y (TTM)-14.35%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%-27.84%
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.
SUI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.84% yearly.
EPS Next Y228.59%
EPS Next 2Y113.61%
EPS Next 3Y77.09%
EPS Next 5Y47.07%
Revenue Next Year-25.88%
Revenue Next 2Y-12.42%
Revenue Next 3Y-6.85%
Revenue Next 5Y-1.84%
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.
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
The Price/Earnings ratio is 12.31, which indicates a correct valuation of SUI.
Based on the Price/Earnings ratio, SUI is valued cheaper than 100.00% of the companies in the same industry.
SUI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.73.
A Price/Forward Earnings ratio of 36.80 indicates a quite expensive valuation of SUI.
Based on the Price/Forward Earnings ratio, SUI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.61. SUI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 36.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUI indicates a rather cheap valuation: SUI is cheaper than 95.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SUI is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.41 | ||
| EV/EBITDA | 15.94 |
4.3 Compensation for Growth
SUI's 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 77.09% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y113.61%
EPS Next 3Y77.09%
5. Dividend
5.1 Amount
SUI has a Yearly Dividend Yield of 3.33%.
With a Dividend Yield of 3.33, SUI pays less dividend than the industry average, which is at 4.83. 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 2.39, SUI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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 78.85% 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.
DP78.85%
EPS Next 2Y113.61%
EPS Next 3Y77.09%
125.94
+0.72 (+0.57%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.19%
Inst Owner Change-0.81%
Ins Owners0.33%
Ins Owner Change4.44%
Market Cap16.07B
Analysts74
Price Target140 (11.16%)
Short Float %1.79%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend3.91
Dividend Growth(5Y)4.83%
DP78.85%
Div Incr Years9
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)396.22%
Min EPS beat(2)-541.21%
Max EPS beat(2)1333.64%
EPS beat(4)2
Avg EPS beat(4)-274.95%
Min EPS beat(4)-1934.29%
Max EPS beat(4)1333.64%
EPS beat(8)2
Avg EPS beat(8)-162.74%
EPS beat(12)2
Avg EPS beat(12)-182.84%
EPS beat(16)3
Avg EPS beat(16)-141.52%
Revenue beat(2)1
Avg Revenue beat(2)-8.37%
Min Revenue beat(2)-19.26%
Max Revenue beat(2)2.52%
Revenue beat(4)2
Avg Revenue beat(4)-4.89%
Min Revenue beat(4)-19.26%
Max Revenue beat(4)2.52%
Revenue beat(8)4
Avg Revenue beat(8)-1.67%
Revenue beat(12)8
Avg Revenue beat(12)-0.13%
Revenue beat(16)12
Avg Revenue beat(16)3.7%
PT rev (1m)0.62%
PT rev (3m)0.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.75%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-25.49%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-7.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 36.8 | ||
| P/S | 5.78 | ||
| P/FCF | 20.41 | ||
| P/OCF | 19.92 | ||
| P/B | 2.1 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 15.94 |
EPS(TTM)10.23
EY8.12%
EPS(NY)3.42
Fwd EY2.72%
FCF(TTM)6.17
FCFY4.9%
OCF(TTM)6.32
OCFY5.02%
SpS21.78
BVpS60.07
TBVpS59.2
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 16.89% | ||
| ROCE | 3.97% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.53% | ||
| ROICexgc | 3.66% | ||
| OM | 18.46% | ||
| PM (TTM) | 46.59% | ||
| GM | 49.7% | ||
| FCFM | 28.34% |
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 5.45 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 2.92% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 2.58 | ||
| Cash Conversion | 68.39% | ||
| Profit Quality | 60.81% | ||
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.81 | ||
| Altman-Z | 1.89 |
F-Score7
WACC7.2%
ROIC/WACC0.44
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)1089.53%
EPS 3Y-39.1%
EPS 5Y-16.06%
EPS Q2Q%2285.71%
EPS Next Y228.59%
EPS Next 2Y113.61%
EPS Next 3Y77.09%
EPS Next 5Y47.07%
Revenue 1Y (TTM)-14.35%
Revenue growth 3Y12.33%
Revenue growth 5Y20.57%
Sales Q2Q%-27.84%
Revenue Next Year-25.88%
Revenue Next 2Y-12.42%
Revenue Next 3Y-6.85%
Revenue Next 5Y-1.84%
EBIT growth 1Y-11.63%
EBIT growth 3Y3.38%
EBIT growth 5Y11.44%
EBIT Next Year53.13%
EBIT Next 3Y17.97%
EBIT Next 5Y11.28%
FCF growth 1Y167.62%
FCF growth 3YN/A
FCF growth 5Y187.98%
OCF growth 1Y23.64%
OCF growth 3Y4.54%
OCF growth 5Y12.55%