Sun Communities, Inc.
Sun Communities, Inc. Fundamental Analysis
Sun Communities, Inc. (SUI) shows strong financial fundamentals with a PE ratio of 10.16, profit margin of 66.87%, and ROE of 21.87%. The company generates $2.3B in annual revenue with weak year-over-year growth of -27.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SUI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSUI demonstrates superior asset utilization.
Valuation Score
ExcellentSUI trades at attractive valuation levels.
Growth Score
ModerateSUI shows steady but slowing expansion.
Financial Health Score
ExcellentSUI maintains a strong and stable balance sheet.
Profitability Score
ExcellentSUI achieves industry-leading margins.
Key Financial Metrics
Is SUI Expensive or Cheap?
P/E Ratio
SUI trades at 10.16 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SUI's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Sun Communities, Inc. at 2.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.36 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 $66.87 as profit after all expenses.
Operating Margin
Core operations generate 23.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.87 in profit for every $100 of shareholder equity.
ROA
Sun Communities, Inc. generates $12.58 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 $868.63M, reflecting robust business health.
Free Cash Flow
Sun Communities, Inc. generates strong free cash flow of $868.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.05 in free cash annually.
FCF Yield
SUI converts 5.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SUI Stacks Against Its Sector Peers
| Metric | SUI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.16 | 23.35 | Better (Cheaper) |
| ROE | 21.87% | 697.00% | Weak |
| Net Margin | 66.87% | -37433.00% (disorted) | Strong |
| Debt/Equity | 0.61 | -20.97 (disorted) | Distorted |
| Current Ratio | 1.88 | 16.30 | Neutral |
| ROA | 12.58% | 535.00% | Weak |
SUI outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, 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
30.21%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
715.00%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
21.79%
Industry Style: Income, Inflation Hedge, REIT
High Growth