NYSE:SUI

Stock Analysis Report

Executive Summary

Sun Communities, Inc. is a REIT that, as of June 30, 2019, owned, operated, or had an interest in a portfolio of 382 communities comprising over 133,000 developed sites in 31 states and Ontario, Canada.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Sun Communities's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

SUI

0.1%

US REITs

2.3%

US Market


1 Year Return

54.4%

SUI

19.1%

US REITs

5.6%

US Market

Return vs Industry: SUI exceeded the US REITs industry which returned 19.1% over the past year.

Return vs Market: SUI exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

SUIIndustryMarket
7 Day0.3%0.1%2.3%
30 Day4.0%0.8%-1.0%
90 Day14.2%5.3%-0.7%
1 Year58.2%54.4%24.4%19.1%7.9%5.6%
3 Year113.5%95.8%33.7%16.6%45.6%36.3%
5 Year233.5%183.4%63.2%28.8%65.8%47.6%

Price Volatility Vs. Market

How volatile is Sun Communities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sun Communities undervalued compared to its fair value and its price relative to the market?

101.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SUI ($153) is trading above our estimate of fair value ($126.62)

Significantly Undervalued: SUI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUI is poor value based on its PE Ratio (101.1x) compared to the REITs industry average (35.3x).

PE vs Market: SUI is poor value based on its PE Ratio (101.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SUI is poor value based on its PEG Ratio (6.9x)


Price to Book Ratio

PB vs Industry: SUI is overvalued based on its PB Ratio (3.9x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Sun Communities forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUI's forecast earnings growth (14.7% per year) is above the savings rate (2.7%).

Earnings vs Market: SUI's earnings (14.7% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: SUI's earnings are forecast to grow, but not significantly.

Revenue vs Market: SUI's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SUI's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SUI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sun Communities performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SUI's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: SUI's earnings growth over the past year (58%) exceeds its 5-year average (20.7% per year).

Earnings vs Industry: SUI earnings growth over the past year (58%) exceeded the REITs industry 17%.


Return on Equity

High ROE: SUI's Return on Equity (3.9%) is considered low.


Return on Assets

ROA vs Industry: SUI's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: SUI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sun Communities's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SUI has a high level of physical assets or inventory.

Debt Coverage by Assets: SUI's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: SUI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SUI has a sufficient allowance for bad loans.

Low Risk Liabilities: SUI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SUI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SUI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SUI has an appropriate level of bad loans.


Next Steps

Dividend

What is Sun Communities's current dividend yield, its reliability and sustainability?

1.96%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SUI's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SUI's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: SUI's dividends per share have been stable in the past 10 years.

Growing Dividend: SUI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.9%), SUI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUI's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

What is the CEO of Sun Communities's salary, the management and board of directors tenure and is there insider trading?

11.7yrs

Average management tenure


CEO

Gary Shiffman (65yo)

0yrs

Tenure

US$9,193,778

Compensation

Mr. Gary A. Shiffman has been the Secretary of Bingham Financial Services Corp. since 1997 and as its Chairman of the Board since August 1996. Mr. Shiffman has been a Non-Executive Director at Ingenia Comm ...


CEO Compensation Analysis

Compensation vs. Market: Gary's total compensation ($USD9.19M) is about average for companies of similar size in the US market ($USD11.23M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Management Age and Tenure

11.7yrs

Average Tenure

58.5yo

Average Age

Experienced Management: SUI's management team is seasoned and experienced (11.7 years average tenure).


Board Age and Tenure

9.1yrs

Average Tenure

65yo

Average Age

Experienced Board: SUI's board of directors are considered experienced (9.1 years average tenure).


Insider Trading

Insider Buying: SUI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,663,79424 Sep 19
Karen Dearing
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares11,204
Max PriceUS$148.50
SellUS$37,92528 Aug 19
Arthur Weiss
EntityIndividual
Role
Member of the Board of Directors
Director
Shares257
Max PriceUS$147.57
SellUS$1,087,37327 Aug 19
John McLaren
EntityIndividual
Role
President
President & COO
Shares7,410
Max PriceUS$146.77
SellUS$281,61629 Mar 19
Clunet Lewis
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,400
Max PriceUS$117.34
BuyUS$30,305,97314 Mar 19
Arthur Weiss
EntityIndividual
Role
Member of the Board of Directors
Director
Shares257,179
Max PriceUS$117.84
SellUS$1,515,30514 Mar 19
Gary Shiffman
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares12,859
Max PriceUS$117.84
SellUS$188,44201 Mar 19
Jonathan Colman
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares1,653
Max PriceUS$114.00

Ownership Breakdown


Management Team

  • Gary Shiffman (65yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$9.19m
  • Jonathan Colman (63yo)

    Executive Vice President

    • Tenure: 16.6yrs
    • Compensation: US$559.81k
  • Karen Dearing (54yo)

    Executive VP

    • Tenure: 11.7yrs
    • Compensation: US$2.95m
  • John McLaren (48yo)

    President & COO

    • Tenure: 5.7yrs
    • Compensation: US$3.05m
  • Helene Lewis

    VP of Human Resources

    • Tenure: 0yrs
  • Carol Petersen

    Investor Relations

    • Tenure: 0yrs

Board Members

  • Stephanie Bergeron (65yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$368.78k
  • Gary Shiffman (65yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$9.19m
  • Ron Klein (61yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$408.78k
  • Clunet Lewis (72yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$408.78k
  • Arthur Weiss (70yo)

    Director

    • Tenure: 23yrs
    • Compensation: US$343.78k
  • Brian Hermelin (54yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$373.78k
  • Meghan Baivier (39yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$353.78k

Company Information

Sun Communities, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sun Communities, Inc.
  • Ticker: SUI
  • Exchange: NYSE
  • Founded: 1975
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$14.257b
  • Market Cap: US$13.873b
  • Shares outstanding: 92.96m
  • Website: https://www.suncommunities.com

Number of Employees


Location

  • Sun Communities, Inc.
  • 27777 Franklin Road
  • Suite 200
  • Southfield
  • Michigan
  • 48034
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUINYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1993
SCZDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1993

Biography

Sun Communities, Inc. is a REIT that, as of June 30, 2019, owned, operated, or had an interest in a portfolio of 382 communities comprising over 133,000 developed sites in 31 states and Ontario, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:42
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.