Sun Communities (SUI) AI Stock Analysis

• Market Cap: $15.53B
• Dividend Yield: 6.42%
• Average Volume (3M): 826.12K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.31
• Revenue Growth: -14.17%
• EPS Growth: 1097.53%
• Country: US
• Employees: 6,491
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 10.02
• Shares Outstanding: 125,155,464
• 10 Day Avg. Volume: 788,297
• 30 Day Avg. Volume: 826,117
• PEG Ratio: -1.22
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 4.78
• P/FCF Ratio: 17.23
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 7.00
• Enterprise Value/Gross Profit: 14.31
• Enterprise Value/Ebitda: 24.02
• 1Y Price Target: $138.70
• Price Target Upside: 11.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: $136.00 ▲(9.62% Upside)

Sun Communities' overall score is driven by strong earnings call results and attractive valuation. Despite technical analysis indicating weak momentum, the company's strategic repositioning and financial achievements provide a positive outlook. Financial performance shows strong profitability, but challenges in revenue growth and cash flow generation need addressing.

Positive Factors

Debt Reduction

Reducing debt significantly enhances financial flexibility, allowing Sun Communities to allocate resources towards growth opportunities and shareholder returns.

Leadership Transition

The appointment of a new CEO with extensive real estate experience can drive strategic growth and operational improvements, ensuring long-term stability and innovation.

Credit Rating Upgrades

Credit rating upgrades reflect improved financial health and lower borrowing costs, enhancing Sun Communities' ability to invest in growth and manage financial obligations.

Negative Factors

Revenue Growth Challenges

A decline in revenue growth indicates potential market saturation or competitive pressures, which may hinder Sun Communities' ability to expand its market share and increase profitability.

Cash Flow Generation

Slowing cash flow growth can limit Sun Communities' ability to reinvest in its business and meet financial obligations, potentially impacting long-term operational flexibility.

RV Segment Challenges

Challenges in the RV segment, including declining NOI, suggest difficulties in maintaining profitability and competitiveness, potentially affecting overall business performance.

Sun Communities Business Overview & Revenue Model

Company Description

Sun Communities, Inc. is a REIT that, as of March 31, 2022, owned, operated, or had an interest in a portfolio of 603 developed MH, RV and marina properties comprising nearly 159,300 developed sites and over 45,700 wet slips and dry storage spaces in 39 states, Canada, Puerto Rico and the UK.

How the Company Makes Money

Sun Communities generates revenue primarily through the leasing of residential lots in its manufactured housing communities and RV resorts. The company charges monthly rent to residents who own their manufactured homes, as well as to RV owners who utilize the resort facilities. Additionally, SUI earns income from property management services, amenity fees, and sales of homes and RVs within its communities. Key revenue streams include long-term lease agreements with home residents, transient RV rentals, and sales of new and used manufactured homes. The company also benefits from economies of scale as it continues to expand its portfolio, often acquiring existing communities to enhance its revenue base. Strategic partnerships with home manufacturers and providers of community services further bolster its income potential.

Sun Communities Financial Statement Overview

Summary

Sun Communities shows strong profitability with high net profit margins and improved return on equity. However, it faces challenges in revenue growth and cash flow generation. The balance sheet shows improved leverage management, but maintaining this trend is crucial.

Income Statement

Sun Communities shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate by 7.84%, indicating a challenging period. However, the company maintains a strong net profit margin of 46.85% in the TTM, a significant improvement from previous years, suggesting enhanced profitability. The gross profit margin remains healthy at 61.63%, and while the EBIT margin has decreased, the EBITDA margin is stable at 29.92%. Overall, the income statement reflects strong profitability but faces growth challenges.

Balance Sheet

The balance sheet of Sun Communities indicates a stable financial position with a debt-to-equity ratio of 0.58 in the TTM, showing improved leverage management compared to previous years. The return on equity has significantly increased to 17.94%, highlighting effective use of equity to generate profits. The equity ratio stands at 55.46%, indicating a solid equity base relative to total assets. The company has improved its leverage and profitability, though it must continue managing its debt levels carefully.

Cash Flow

Cash flow analysis for Sun Communities shows a decline in free cash flow growth by 6.41% in the TTM, reflecting potential cash generation challenges. However, the operating cash flow to net income ratio is 0.33, and the free cash flow to net income ratio is 1.0, indicating that the company generates sufficient cash relative to its net income. While cash flow generation has slowed, the company maintains a strong cash position relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.75B	3.20B	3.18B	2.93B	2.26B	1.38B
Gross Profit	1.34B	1.50B	1.49B	1.42B	1.15B	768.90M
EBITDA	800.80M	1.10B	771.60M	1.11B	1.10B	666.70M
Net Income	1.30B	89.00M	-213.30M	242.00M	380.20M	131.61M
Balance Sheet
Total Assets	13.36B	16.55B	16.94B	17.08B	13.49B	11.21B
Cash, Cash Equivalents and Short-Term Investments	1.46B	47.40M	29.20M	200.10M	252.70M	202.07M
Total Debt	4.28B	7.35B	7.78B	7.13B	5.60B	4.69B
Total Liabilities	5.83B	9.36B	9.77B	9.20B	6.76B	5.58B
Stockholders Equity	7.41B	7.08B	7.08B	7.81B	6.62B	5.53B
Cash Flow
Free Cash Flow	832.10M	888.80M	807.90M	752.20M	770.50M	554.03M
Operating Cash Flow	832.10M	888.80M	807.90M	752.20M	770.50M	554.03M
Investing Cash Flow	5.34B	-295.20M	-935.00M	-3.08B	-2.35B	-2.50B
Financing Cash Flow	-4.81B	-571.60M	78.40M	2.35B	1.57B	2.00B

Sun Communities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 124.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUI, the sentiment is Negative. The current price of 124.06 is below the 20-day moving average (MA) of 125.40, below the 50-day MA of 126.20, and above the 200-day MA of 122.55, indicating a neutral trend. The MACD of -0.74 indicates Positive momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 65.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SUI.

Sun Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUI	70 Outperform	$15.53B	12.12	-1.51%	6.42%	-14.17%	1097.53%
ELS	69 Neutral	$12.21B	31.70	24.00%	3.29%	0.55%	2.42%
ESS	69 Neutral	$17.64B	21.28	14.40%	3.84%	7.56%	54.15%
UDR	68 Neutral	$12.01B	94.52	3.74%	4.73%	2.29%	-4.89%
CPT	67 Neutral	$14.87B	73.31	3.30%	3.98%	0.76%	-60.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UMH	65 Neutral	$1.25B	109.72	3.64%	5.99%	8.39%	―

Sun Communities Corporate Events

Sun Communities Enters New $2 Billion Credit Agreement

On September 17, 2025, Sun Communities, Inc. entered into a new Credit Agreement with several financial institutions, replacing its existing $3.05 billion credit facility. The new agreement allows for borrowing up to $2 billion with potential additional borrowings of $1 billion, extending the maturity date to January 31, 2030. This strategic financial move is expected to enhance the company’s financial flexibility and support its growth initiatives.

The most recent analyst rating on (SUI) stock is a Hold with a $138.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Highlights Resilience in Investor Presentation

Sun Communities, Inc. released an investor presentation on September 3, 2025, highlighting its financial performance and strategic outlook. The presentation emphasized the company’s resilience in real property operations, with MH accounting for a significant portion of its NOI. The company also addressed various risks and uncertainties, including liquidity demands, refinancing challenges, and competitive market forces, which could impact its future results. The presentation included guidance estimates based on completed acquisitions and sales, excluding prospective activities, and highlighted the company’s ongoing efforts to maintain effective internal controls and strategic execution.

The most recent analyst rating on (SUI) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Shines in Earnings Call with Positive Outlook

Sun Communities, Inc. recently held its earnings call, which was marked by a positive sentiment overall. The company showcased significant debt reduction, robust financial performance, strategic reallocations, and leadership transitions. Despite facing challenges in the RV segment and strategic impairments, Sun Communities demonstrated resilience and growth, supported by credit rating upgrades and strategic acquisitions.

Sun Communities Reports Strong Q2 2025 Earnings

Sun Communities, Inc., a real estate investment trust (REIT), specializes in owning and operating manufactured housing and recreational vehicle communities across North America and the UK. The company reported its financial results for the second quarter and first six months of 2025, highlighting a significant net income attributable to common shareholders of $1.3 billion for the quarter, driven by the sale of Safe Harbor Marinas.