One-glance verdict
Overvalued
$50.36 our estimate vs market $114.48
Wall Street consensus: $138.89 (175.8% higher than our fair-value estimate)
127% above our estimate, beyond the bull case
Fundamentals snapshot
Sun Communities, Inc.
SUI · NYQ · Real Estate · REIT - Residential
Current price
$114.48
52-week range
$113.80 - $137.85
Market cap
$14.46B
Balance sheet
Stretched
1.97x Concerning
Net debt $3.91B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.6% last year.
- Reward Free cash flow was positive in 5/10 years.
- Risk Stock trades 71.9% above its 5-year average P/E.
- Risk Insider ownership is only 1.2% (peer median: 1.5%).
What this company does
Sun Communities, Inc.
Sun Communities is a special type of company called a Real Estate Investment Trust (a company that owns properties and passes the rental income on to investors) which operates manufactured home communities and RV resorts. The company makes money primarily from the recurring rent (income that comes in consistently and predictably) paid by its residents. Because housing is a fundamental need, this rental income can be more stable than that of companies selling non-essential goods, which can be attractive to investors seeking consistency.
How the company got here
Sun Communities started in 1975 as a small owner of manufactured housing communities. A key turning point was becoming a publicly traded company in 1993, which allowed it to raise money and grow by buying more properties. Over the years, it expanded significantly by acquiring other companies, adding not just more manufactured home communities but also recreational vehicle (RV) resorts, marinas, and holiday parks in the United Kingdom. Recently, the company made a strategic shift to sell its marina and UK businesses to focus on its core North American manufactured housing and RV properties.
What it actually does
Sun Communities is a real estate company that owns and operates two main types of properties: manufactured home communities and recreational vehicle (RV) resorts. Think of them as a landlord for large communities where people either live year-round or stay for a vacation. For their housing communities, residents typically own their home but pay Sun a monthly rent for the land it sits on, which is called a site lease. In their RV resorts, they rent out spots for travelers to park their vehicles for short-term stays or for an entire season.
Manufactured Housing
This is the company's largest and most stable business, making up the majority of its revenue. In these communities, people own their factory-built homes and pay Sun a recurring fee to lease the land underneath. This provides a steady income for the company because housing is a basic need and moving a manufactured home is difficult and expensive for the owner. These communities are designed for a variety of residents, including families and retirees, and often include amenities like pools and clubhouses.
Recreational Vehicles (RV)
This part of the business, often branded as Sun Outdoors, caters to travelers and vacationers. The company owns resorts and campgrounds across the U.S. and Canada where customers pay to rent a site for their RV, either for a short trip or for a longer, seasonal stay. This segment is more sensitive to the economy and travel trends than the housing business. Revenue comes from these site rentals, and the business aims to attract a mix of short-term vacationers and long-term seasonal guests to keep occupancy stable.
What management is betting on now
Management is currently focused on simplifying the company and strengthening its finances. After selling off its marina and United Kingdom businesses, the company is concentrating on its core, and most predictable, North American manufactured housing and RV communities. A major priority is using the cash from those sales to pay down debt, making the company financially more resilient. They are also investing in technology to better manage their properties and are focused on increasing the profitability of their existing locations through steady rent increases and by keeping their communities desirable places to live and vacation.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$87.80M
FY2025 Q4
$-290.50M
Revenue
$507.90M
Net income
$-6.40M
Diluted EPS
-0.07
Operating cash flow
$269.30M
Free cash flow
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Sources
Revenue
$515.20M
Net income
$128.90M
Diluted EPS
1.09
Operating cash flow
$166.50M
Free cash flow
$-290.50M
Fetching…
Sources
Revenue
$697.20M
Net income
$12.10M
Diluted EPS
0.07
Operating cash flow
$197.80M
Free cash flow
—
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Sources
Revenue
$623.50M
Net income
$1.31B
Diluted EPS
10.02
Operating cash flow
$256.00M
Free cash flow
—
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Sources
Revenue
$470.20M
Net income
$-41.20M
Diluted EPS
-0.34
Operating cash flow
$243.90M
Free cash flow
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Sources
Revenue
$745.90M
Net income
$-228.40M
Diluted EPS
-1.80
Operating cash flow
$118.00M
Free cash flow
$87.80M
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Sources
Revenue
$939.90M
Net income
$300.50M
Diluted EPS
2.31
Operating cash flow
$189.20M
Free cash flow
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Sources
Revenue
$864.00M
Net income
$56.70M
Diluted EPS
0.42
Operating cash flow
$311.30M
Free cash flow
—
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Sources
Is it cheap or expensive?
Fair value $50.36 vs current price $114.48
Wall Street consensus is the average analyst price target: $138.89 (175.8% higher than our fair-value estimate).
Our most-likely fair value is $50.36 a share — about 56.0% below today's price of $114.48, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $3.9B. Interest coverage 2.0x.
Net debt
$3.91B
Interest coverage
1.97x
Sun Communities, Inc.'s profit covers its interest bill about 2.0 times over.
Stretched
Worse cushion
Baseline
Better cushion
SUI
BASELINE
Sun Communities, Inc.
Total debt $4.07B Interest coverage 1.97x This is the baseline the peer rows are being compared against.
Total debt $3.31B Interest coverage 3.37x +71% vs SUI Carries about 1.7x more debt cushion than SUI.
Total debt $791.89M Interest coverage 1.61x -18% vs SUI Carries about 1.2x less debt cushion than SUI.
Total debt $8.59B Interest coverage 2.13x +8% vs SUI Has roughly the same debt cushion as SUI.
Total debt $5.15B Interest coverage 2.51x +27% vs SUI Carries about 1.3x more debt cushion than SUI.
Total debt $4.87B Interest coverage 2.09x +6% vs SUI Has roughly the same debt cushion as SUI.
What you should know
The case for and against SUI
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.6% last year.
-
Free cash flow was positive in 5/10 years.
-
Dividend yield is 3.9% with 34-year payout history.
Risks
-
Stock trades 71.9% above its 5-year average P/E.
-
Insider ownership is only 1.2% (peer median: 1.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
146.77x
Forward P/E
35.72x
P/B
2.54x
P/S
6.20x
EV/EBITDA
17.55x
PEG ratio
9.42x
Profitability
How much profit each dollar creates
Gross margin
53.7%
Operating margin
23.2%
Net margin
-37.4%
ROE
1.7%
ROA
2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.73x
Current ratio
0.60x
Quick ratio
0.46x
Total debt
$4.07B
Total cash
$165.20M
Growth
How the business has been compounding
Revenue TTM
$2.34B
Revenue 5Y CAGR
0.4%
EPS TTM
0.78
EPS 5Y CAGR
75.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$889.60M
Free CF TTM
$407.20M
FCF margin
17.4%
Dividend
Shareholder payout
Yield
3.9%
Payout ratio
553.9%
Last ex-div date
2026-09-30