NYSE:SUI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sun Communities, Inc. is a REIT that, as of June 30, 2020, owned, operated, or had an interest in a portfolio of 426 communities comprising nearly 143,000 developed sites in 33 states and Ontario, Canada. More Details


Snowflake Analysis

Established dividend payer with moderate growth potential.


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

Stable Share Price: SUI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

SUI

3.3%

US REITs

1.8%

US Market


1 Year Return

-3.5%

SUI

-10.0%

US REITs

14.2%

US Market

Return vs Industry: SUI exceeded the US REITs industry which returned -10.1% over the past year.

Return vs Market: SUI underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

SUIIndustryMarket
7 Day2.1%3.3%1.8%
30 Day0.4%2.0%0.04%
90 Day1.6%4.2%9.8%
1 Year-1.3%-3.5%-6.4%-10.0%16.7%14.2%
3 Year81.0%67.2%17.8%3.8%41.6%32.2%
5 Year148.5%114.0%54.1%23.3%90.9%69.5%

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?

104.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUI ($145.78) is trading above our estimate of fair value ($109.67)

Significantly Below Fair Value: 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 (105.2x) compared to the US REITs industry average (35.8x).

PE vs Market: SUI is poor value based on its PE Ratio (105.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SUI is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: SUI is overvalued based on its PB Ratio (3.3x) compared to the US REITs industry average (1.5x).


Next Steps

Future Growth

How is Sun Communities forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUI's forecast earnings growth (27.3% per year) is above the savings rate (2.2%).

Earnings vs Market: SUI's earnings (27.3% per year) are forecast to grow faster than the US market (23.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUI's revenue (3.7% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: SUI's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUI has high quality earnings.

Growing Profit Margin: SUI's current net profit margins (10.1%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: SUI's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: SUI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUI had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the REITs industry average (2.4%).


Return on Equity

High ROE: SUI's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Sun Communities's financial position?


Financial Position Analysis

Short Term Liabilities: SUI's short term assets ($628.3M) exceed its short term liabilities ($205.6M).

Long Term Liabilities: SUI's short term assets ($628.3M) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: SUI's debt to equity ratio (75.3%) is considered high.

Reducing Debt: SUI's debt to equity ratio has reduced from 168.7% to 75.3% over the past 5 years.

Debt Coverage: SUI's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: SUI's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

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

2.19%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SUI's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: SUI's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (4.71%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.7%), 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 covered by earnings (61.4% payout ratio).


Next Steps

Management

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

10.0yrs

Average board tenure


CEO

Gary Shiffman (66 yo)

no data

Tenure

US$7,969,265

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 ($USD7.97M) is about average for companies of similar size in the US market ($USD11.30M).

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


Board Members

NamePositionTenureCompensationOwnership
Gary Shiffman
Chairman & CEOno dataUS$7.97m1.47%
$ 215.2m
Stephanie Bergeron
Independent Director13.33yrsUS$481.04k0.024%
$ 3.5m
Ronald Klein
Independent Director5.67yrsUS$578.54k0.016%
$ 2.3m
Clunet Lewis
Lead Independent Directorno dataUS$526.04k0.033%
$ 4.8m
Arthur Weiss
Director23.92yrsUS$456.04k0.12%
$ 17.7m
Brian Hermelin
Independent Director6.67yrsUS$486.04k0.018%
$ 2.6m
Meghan Baivier
Independent Director3.17yrsUS$481.04k0.0089%
$ 1.3m

10.0yrs

Average Tenure

66yo

Average Age

Experienced Board: SUI's board of directors are seasoned and experienced ( 10 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 8.4%.


Top Shareholders

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$14.687b
  • Market Cap: US$14.207b
  • Shares outstanding: 100.75m
  • 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
SUI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1993

Biography

Sun Communities, Inc. is a REIT that, as of June 30, 2020, owned, operated, or had an interest in a portfolio of 426 communities comprising nearly 143,000 developed sites in 33 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 Analysis2020/09/18 05:54
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.