Sun Communities, Inc.
Sun Communities, Inc. Fundamental Analysis
Sun Communities, Inc. (SUI) shows moderate financial fundamentals with a PE ratio of 15.94, profit margin of 40.68%, and ROE of 14.38%. The company generates $2.5B in annual revenue with weak year-over-year growth of 0.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SUI's fundamental strength across five key dimensions:
Efficiency Score
WeakSUI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSUI trades at attractive valuation levels.
Growth Score
WeakSUI faces weak or negative growth trends.
Financial Health Score
ExcellentSUI maintains a strong and stable balance sheet.
Profitability Score
ModerateSUI maintains healthy but balanced margins.
Key Financial Metrics
Is SUI Expensive or Cheap?
P/E Ratio
SUI trades at 15.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SUI's PEG of -0.73 indicates potential undervaluation.
Price to Book
The market values Sun Communities, Inc. at 2.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 32.28 times EBITDA. This signals the market has high growth expectations.
How Well Does SUI Make Money?
Net Profit Margin
For every $100 in sales, Sun Communities, Inc. keeps $40.68 as profit after all expenses.
Operating Margin
Core operations generate 19.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.38 in profit for every $100 of shareholder equity.
ROA
Sun Communities, Inc. generates $7.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sun Communities, Inc. generates strong operating cash flow of $827.15M, reflecting robust business health.
Free Cash Flow
Sun Communities, Inc. generates strong free cash flow of $827.15M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.69 in free cash annually.
FCF Yield
SUI converts 5.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SUI Stacks Against Its Sector Peers
| Metric | SUI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.94 | 24.42 | Better (Cheaper) |
| ROE | 14.38% | 679.00% | Weak |
| Net Margin | 40.68% | 4578.00% | Weak |
| Debt/Equity | 0.61 | -22.07 (disorted) | Distorted |
| Current Ratio | 2.56 | 14.99 | Strong Liquidity |
| ROA | 7.98% | -1370.00% (disorted) | Weak |
SUI outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sun Communities, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.73%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-60.86%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
21.16%
Industry Style: Income, Inflation Hedge, REIT
High Growth