One-glance verdict
Overvalued
$69.93 our estimate vs market $114.97
Wall Street consensus: $136.00 (94.5% higher than our fair-value estimate)
64% above our estimate, beyond the bull case
Fundamentals snapshot
Sun Communities, Inc.
SUI · NYQ · Real Estate · REIT - Residential
Current price
$114.97
52-week range
$109.77 - $137.85
Market cap
$14.53B
Balance sheet
Stretched
1.97x Concerning
Net debt $3.12B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 4.9% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Reward Dividend yield is 3.9% with 34-year payout history.
- Risk Insider ownership is only 1.2% (peer median: 1.5%).
What this company does
Sun Communities, Inc.
Sun Communities owns and operates manufactured housing and RV (recreational vehicle) communities across the U.S., Canada, and the U.K., making money mainly from rent and fees people pay to live there or park their RVs. This business model provides a steady stream of recurring revenue (income that comes in regularly), which is important because it helps the company predict its earnings and plan for the future.
How the company got here
Sun Communities started in 1975 as a small owner and operator of manufactured housing communities in Michigan. It officially became a corporation in 1985 and went public in 1993, which allowed it to raise money to grow. Over the years, Sun Communities expanded significantly through acquisitions, adding recreational vehicle (RV) resorts, marinas, and holiday parks to its portfolio. A major shift occurred in 2025 when the company sold its marina business, refocusing on its core manufactured housing and RV operations. This strategic move aimed to simplify the business and strengthen its financial position.
What it actually does
Sun Communities is a real estate investment trust (REIT), which means it owns, operates, and manages income-producing real estate. Essentially, the company owns land and develops communities on it, then rents out the sites to people who own their own manufactured homes or recreational vehicles. They also offer vacation experiences through holiday parks. This business model provides steady income because residents pay rent for the land their homes or RVs sit on, and it's difficult and expensive for them to move their homes or vehicles.
Manufactured Housing (MH) Communities
This is Sun Communities' largest business segment and its original focus. The company owns and operates manufactured housing communities, which are neighborhoods designed for factory-built homes. Residents typically own their homes but rent the land (site) the home is on from Sun Communities. This provides an affordable housing solution for many people, and because moving a manufactured home is costly, residents tend to stay for a long time, creating stable rental income for the company. This segment is known for its steady cash flow, even during economic downturns.
Recreational Vehicle (RV) Communities
Sun Communities also develops and operates recreational vehicle (RV) resorts and campgrounds. These properties cater to people who own RVs and are looking for places to stay, whether for a short vacation or a longer period. The company offers amenities and services to make these stays enjoyable. This segment can provide growth opportunities, but it can also be more sensitive to economic conditions and consumer spending on leisure activities compared to manufactured housing.
UK Holiday Parks
Through its acquisition of Park Holidays UK, Sun Communities operates holiday parks in the United Kingdom. These parks offer vacation homes and associated site licenses, providing leisure and holiday experiences for guests. This segment diversifies the company's geographic reach and offers a different type of hospitality business, often with seasonal demand patterns.
What management is betting on now
Sun Communities is focusing on optimizing its core business operations in manufactured housing and RV communities. Key strategies include driving organic growth through higher occupancy and rental rates, improving operational efficiency, and investing in digital infrastructure. Management is also prioritizing thoughtful capital allocation, which involves balancing debt reduction, selective acquisitions, and returning capital to shareholders. The company aims to leverage its strong financial position and operational expertise to create long-term value by focusing on attainable housing and affordable vacationing.
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
$558.20M
Net income
$126.20M
Diluted EPS
1.00
Operating cash flow
$155.20M
Free cash flow
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Sources
Revenue
$484.60M
Net income
$-1.02B
Diluted EPS
-8.08
Operating cash flow
$265.90M
Free cash flow
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Sources
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
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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
Is it cheap or expensive?
Fair value $69.93 vs current price $114.97
Wall Street consensus is the average analyst price target: $136.00 (94.5% higher than our fair-value estimate).
Our most-likely fair value is $69.93 a share — about 39.2% below today's price of $114.97, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $3.1B. Interest coverage 2.0x.
Net debt
$3.12B
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 $3.78B 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
1 Risk
Rewards
-
Returns 4.9% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 5/10 years.
-
Dividend yield is 3.9% with 34-year payout history.
Risks
-
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)
46.93x
Forward P/E
35.88x
P/B
2.64x
P/S
6.22x
EV/EBITDA
16.97x
PEG ratio
9.42x
Profitability
How much profit each dollar creates
Gross margin
53.6%
Operating margin
29.3%
Net margin
-32.5%
ROE
4.9%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.71x
Current ratio
2.61x
Quick ratio
1.66x
Total debt
$3.78B
Total cash
$658.90M
Growth
How the business has been compounding
Revenue TTM
$2.07B
Revenue 5Y CAGR
0.4%
EPS TTM
2.45
EPS 5Y CAGR
75.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$856.90M
Free CF TTM
$407.20M
FCF margin
19.7%
Dividend
Shareholder payout
Yield
3.9%
Payout ratio
179.6%
Last ex-div date
2026-09-30