Sun Communities (NYSE:SUI) - Share price, News & Analysis

SUI fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	2/6
Dividends	5/6

SUI Stock Overview

Sun Communities, Inc. is a REIT that, as of September 30, 2020, owned, operated, or had an interest in a portfolio of 432 communities comprising nearly 146,000 developed sites in 32 states and Ontario, Canada.

Rewards

Trading at 43.5% below our estimate of its fair value

Earnings grew by 106.7% over the past year

Pays a reliable dividend of 2.23%

Risk Analysis

Earnings are forecast to decline by an average of 0.9% per year for the next 3 years

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Significant insider selling over the past 3 months

+ 1 more risk

Sun Communities Competitors

AvalonBay Communities

NYSE:AVB

US$28.1b

Invitation Homes

NYSE:INVH

US$22.2b

Mid-America Apartment Communities

NYSE:MAA

US$20.8b

Essex Property Trust

NYSE:ESS

US$19.1b

Price History & Performance

Summary of all time highs, changes and price drops for Sun Communities
Historical stock prices
Current Share Price	US$157.70
52 Week High	US$211.79
52 Week Low	US$151.51
Beta	0.64
1 Month Change	-15.61%
3 Month Change	-14.92%
1 Year Change	-4.63%
3 Year Change	25.03%
5 Year Change	82.33%
Change since IPO	678.77%

Recent News & Updates

May 11

Buying More: Beastly Growth On Sale At Sun Communities

Despite a plunging share price, fundamentals for SUI continue to shine. Guidance was raised for Core FFO per share and for same-property NOI growth. We've already seen more than two decades of impressive same-property NOI growth, so it shouldn't be shocking if it continues. While many REITs are showing strong growth due to a weak 2020 or 2021, SUI delivered growth in each year including extremely high growth in 2021. SUI is a great core holding for a long-term portfolio designed to generate total returns and it currently trades at multiples comparable to other housing REITs. Deserves higher.

Shareholder Returns

	SUI	US REITs	US Market
7D	-3.2%	-2.0%	-2.7%
1Y	-4.6%	-2.0%	-12.9%

Return vs Industry: SUI underperformed the US REITs industry which returned -2% over the past year.

Return vs Market: SUI exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is SUI's price volatile compared to industry and market?
SUI volatility
SUI Average Weekly Movement	4.2%
REITs Industry Average Movement	4.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: SUI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SUI's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1975	5,455	Gary Shiffman	https://www.suncommunities.com

Sun Communities Fundamentals Summary

How do Sun Communities's earnings and revenue compare to its market cap?
SUI fundamental statistics
Market Cap	US$19.58b
Earnings (TTM)	US$353.89m
Revenue (TTM)	US$2.35b

55.3x

P/E Ratio

8.3x

P/S Ratio

Is SUI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUI income statement (TTM)
Revenue	US$2.35b
Cost of Revenue	US$1.17b
Gross Profit	US$1.18b
Other Expenses	US$828.71m
Earnings	US$353.89m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.91
Gross Margin	50.31%
Net Profit Margin	15.06%
Debt/Equity Ratio	91.4%

How did SUI perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

55%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

43.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SUI ($157.7) is trading below our estimate of fair value ($278.89)

Significantly Below Fair Value: SUI is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SUI is poor value based on its PE Ratio (55.3x) compared to the US REITs industry average (33.4x).

PE vs Market: SUI is poor value based on its PE Ratio (55.3x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: SUI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: SUI is overvalued based on its PB Ratio (3x) compared to the US REITs industry average (1.7x).

Future Growth

How is Sun Communities forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-0.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUI's earnings are forecast to decline over the next 3 years (-0.9% per year).

Earnings vs Market: SUI's earnings are forecast to decline over the next 3 years (-0.9% per year).

High Growth Earnings: SUI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SUI's revenue (6.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: SUI's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SUI's Return on Equity is forecast to be low in 3 years time (4.9%).

Past Performance

How has Sun Communities performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

38.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SUI has a large one-off gain of $97.9M impacting its March 31 2022 financial results.

Growing Profit Margin: SUI's current net profit margins (15.1%) are higher than last year (11.3%).

Past Earnings Growth Analysis

Earnings Trend: SUI's earnings have grown significantly by 38.3% per year over the past 5 years.

Accelerating Growth: SUI's earnings growth over the past year (106.7%) exceeds its 5-year average (38.3% per year).

Earnings vs Industry: SUI earnings growth over the past year (106.7%) exceeded the REITs industry 69.5%.

Return on Equity

High ROE: SUI's Return on Equity (5.8%) is considered low.

Financial Health

How is Sun Communities's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SUI's short term assets ($705.1M) exceed its short term liabilities ($340.6M).

Long Term Liabilities: SUI's short term assets ($705.1M) do not cover its long term liabilities ($6.9B).

Debt to Equity History and Analysis

Debt Level: SUI's net debt to equity ratio (89.6%) is considered high.

Reducing Debt: SUI's debt to equity ratio has reduced from 129.3% to 91.4% over the past 5 years.

Debt Coverage: SUI's debt is not well covered by operating cash flow (12.5%).

Interest Coverage: SUI's interest payments on its debt are not well covered by EBIT (2.8x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SUI's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: SUI's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.6%), SUI's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (57.6%), SUI's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

14.3yrs

Average management tenure

CEO

Gary Shiffman (67 yo)

no data

Tenure

US$13,828,288

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 ($USD13.83M) is about average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SUI's management team is seasoned and experienced (14.3 years average tenure).

Board Members

Experienced Board: SUI's board of directors are seasoned and experienced ( 11.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31