NYSE:SUI

Stock Analysis Report

Executive Summary

Sun Communities, Inc. is a REIT that, as of March 31, 2019, owned, operated, or had an interest in a portfolio of 379 communities comprising over 132,000 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

-2.0%

NYSE:SUI

-1.5%

US REITs

-0.3%

US Market


1 Year Return

36.6%

NYSE:SUI

9.7%

US REITs

3.4%

US Market

SUI outperformed the REITs industry which returned 10.4% over the past year.

SUI outperformed the Market in United States of America which returned 4.1% over the past year.


Share holder returns

SUIIndustryMarket
7 Day-2.0%-1.5%-0.3%
30 Day3.0%-1.7%2.9%
90 Day11.9%3.8%2.1%
1 Year40.3%36.6%14.6%9.7%5.7%3.4%
3 Year93.1%76.5%18.7%3.3%45.8%36.2%
5 Year206.0%158.0%56.2%23.4%58.9%41.3%

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 based on future cash flows and its price relative to the stock market?

101.82x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Sun Communities's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Sun Communities's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Sun Communities is overvalued based on earnings compared to the US REITs industry average.

Sun Communities is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sun Communities is poor value based on expected growth next year.


Price Based on Value of Assets

Sun Communities is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sun Communities's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Sun Communities's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Sun Communities's revenue growth is positive but not above the United States of America market average.

Sun Communities's earnings growth is expected to exceed the United States of America market average.

Sun Communities's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sun Communities will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Sun Communities performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sun Communities has delivered over 20% year on year earnings growth in the past 5 years.

Sun Communities's 1-year earnings growth exceeds its 5-year average (48.3% vs 21.9%)

Sun Communities's earnings growth has exceeded the US REITs industry average in the past year (48.3% vs 16%).


Return on Equity

Sun Communities has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sun Communities used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Sun Communities has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sun Communities's financial position?


Financial Position Analysis

Sun Communities is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sun Communities's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sun Communities's level of debt (106.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (251.8% vs 106.1% today).

Debt is not well covered by operating cash flow (11.2%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

2.32%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sun Communities's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Sun Communities's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (159.5x coverage).


Next Steps

Management

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

11.4yrs

Average management tenure


CEO

Gary Shiffman (65yo)

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 an Executive Chairman of Sun Communities ...


CEO Compensation Analysis

Gary's remuneration is about average for companies of similar size in United States of America.

Gary's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.4yrs

Average Tenure

58.5yo

Average Age

The average tenure for the Sun Communities management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.8yrs

Average Tenure

65yo

Average Age

The tenure for the Sun Communities board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellUS$281,61629 Mar 19
Clunet Lewis
EntityIndividual
Role
Lead Director
Shares2,400
Max PriceUS$117.34
BuyUS$30,305,97314 Mar 19
Arthur Weiss
EntityIndividual
Role
Member of the Board of Directors
Shares257,179
Max PriceUS$117.84
SellUS$1,515,30514 Mar 19
Gary Shiffman
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares12,859
Max PriceUS$117.84
SellUS$188,44201 Mar 19
Jonathan Colman
EntityIndividual
Role
Executive Vice President
Shares1,653
Max PriceUS$114.00
SellUS$119,94028 Sep 18
Clunet Lewis
EntityIndividual
Role
Lead Director
Shares1,200
Max PriceUS$99.95
SellUS$625,04001 Aug 18
John McLaren
EntityIndividual
Role
President & COO
Shares6,500
Max PriceUS$96.16

Ownership Breakdown


Management Team

  • Gary Shiffman (65yo)

    Chairman & CEO

    • Compensation: $9.19m
  • Jonathan Colman (63yo)

    Executive Vice President

    • Tenure: 16.3yrs
    • Compensation: $559.81k
  • Karen Dearing (54yo)

    Executive VP

    • Tenure: 11.4yrs
    • Compensation: $2.95m
  • John McLaren (48yo)

    President & COO

    • Tenure: 5.4yrs
    • Compensation: $3.05m
  • Helene Lewis

    VP of Human Resources

  • Carol Petersen

    Investor Relations


Board Members

  • Stephanie Bergeron (65yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: $368.78k
  • Gary Shiffman (65yo)

    Chairman & CEO

    • Tenure: 19.3yrs
    • Compensation: $9.19m
  • Ron Klein (61yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: $408.78k
  • Clunet Lewis (72yo)

    Lead Independent Director

    • Compensation: $408.78k
  • Arthur Weiss (70yo)

    Director

    • Tenure: 22.8yrs
    • Compensation: $343.78k
  • Brian Hermelin (54yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: $373.78k
  • Meghan Baivier (39yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: $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$12.433b
  • Market Cap: US$12.103b
  • Shares outstanding: 92.96m
  • Website: Click here

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 March 31, 2019, owned, operated, or had an interest in a portfolio of 379 communities comprising over 132,000 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 Analysis2019/07/17 23:43
End of Day Share Price2019/07/17 00:00
Earnings2019/03/31
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.