Sun Communities Intrinsic Value – Sun Communities Inc Receives Weak Valuation Ranking of 26 from Inv.
July 30, 2023
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Sun Communities ($NYSE:SUI), Inc. (NYSE: SUI) is a real estate investment trust that specializes in acquiring, owning, and operating manufactured housing and recreational vehicle (RV) communities throughout the United States. Recently, investment research firm Inv. gave Sun Communities a weak valuation score of 26. This ranking is significantly lower than its peers, raising the question of whether this is an accurate assessment of its value. Investors must consider several factors when evaluating Sun Communities’ stock. It is important to note that Sun Communities’ growth prospects are dependent heavily on the performance of the real estate sector, which has been impacted by the pandemic.
However, the company has responded quickly by reducing expenses and capital expenditures in order to remain financially sound.
In addition, Sun Communities has plans to expand into markets outside of the U.S., such as Canada and Mexico. It is possible that their assessment was based on short-term performance rather than long-term growth prospects, or that their metrics did not adequately measure the financial health of a real estate investment trust.
Share Price
On Friday, the company’s stock opened at $133.4 and closed at $131.5, representing a decline of 0.6% from the prior closing price of $132.2. This has suggested that investors may be reluctant to invest in Sun Communities Inc due to its poor valuation ranking. Despite this, Sun Communities has remained a consistent performer in the real estate market, posting strong returns over the past five years. The company’s recent weak valuation ranking is therefore likely to have only a minor impact on its stock price in the short-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sun Communities. More…
| Total Revenues | Net Income | Net Margin |
| 3.08k | 227 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sun Communities. More…
| Operations | Investing | Financing |
| 703.7 | -3.06k | 2.35k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sun Communities. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.56k | 9.47k | 61.96 |
Key Ratios Snapshot
Some of the financial key ratios for Sun Communities are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 17.9% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Sun Communities Intrinsic Value
At GoodWhale, we have conducted an analysis of SUN COMMUNITIES‘ wellbeing. Our proprietary Valuation Line calculation reveals that the intrinsic value of SUN COMMUNITIES’ share is around $168.1. This means that the current price of the stock, which is $131.5, is undervalued by 21.8%. This presents an opportunity for investors to buy the stock at a discount and benefit from potential upside. More…
Peers
The competition between Sun Communities Inc and its competitors American Homes 4 Rent, American Campus Communities Inc, Canadian Apartment Properties Real Estate Investment Trust is fierce. All four companies are vying for the top spot in the market and are constantly innovating and improving their offerings to attract and retain customers. While Sun Communities Inc may have the edge in terms of size and scale, its competitors are not far behind and are constantly challenging it.
– American Homes 4 Rent ($NYSE:AMH)
American Homes 4 Rent is a real estate investment trust that focuses on acquiring, renovating, and leasing single-family homes as rental properties. The company was founded in 2012 and is based in Agoura Hills, California. As of December 31, 2020, American Homes 4 Rent owned 53,949 single-family homes in 26 states.
– American Campus Communities Inc ($TSX:CAR.UN)
Canadian Apartment Properties Real Estate Investment Trust is a real estate investment trust that owns, operates and invests in apartment buildings in Canada. The company has a market cap of $6.83 billion as of 2022.
Summary
Sun Communities Inc (SUN) is a real estate investment trust (REIT) that specializes in the acquisition, operation, and development of manufactured housing and recreational vehicle (RV) communities. According to investment analysis, SUN is currently undervalued based on a ranking of 26 from Inv, a financial research and analysis service. Investors may find value in SUN’s strong cash flow generation, good dividend yield, and potential for growth and expansion.
However, there are potential risks to investing in SUN such as volatile stock market conditions, higher interest rates, and increased competition. It is important to conduct the necessary research and due diligence before making an investment decision.
