CluenexSun Communities SUI
Sun Communities scores weak on business quality (4.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Sun Communities does
Sun Communities operates and develops manufactured housing and RV communities, collecting rent and fees from residents who own or lease homes on its land. The company is leaning into portfolio management to navigate shifting real estate market conditions.
- What it does best
Sun Communities generates elite free cash flow efficiency, landing in the top decile of its sector with a 70% FCF margin. This stems from low ongoing capital needs once communities are built, locking in resilient cash generation compared to peers like INVH at 15.9%.
- The main risk
High interest coverage of 2.9x leaves the balance sheet vulnerable to financing costs. With net debt at $3.6B and a negative net margin of 39.5%, debt servicing pressures squeeze profitability when market rates stay elevated.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins land at 20.5% while return on equity dips to -12.7%. Losses from net income of -$871M weigh down the profile, showing that scale does not immediately protect earnings.
The portfolio moat locks in manufactured housing and RV residents through high relocation costs. A gross margin of 54.8% supports the asset base, though an 18th-percentile sector rank limits pricing power.
Revenue growth crawls at 2.0%, placing the firm in the bottom quartile of its sector. This rate reflects a fading top line compared to historical annual summaries.
Total debt sits at $4.3B with a debt-to-equity ratio of 0.6, paired with $402M in free cash flow. The balance sheet remains moderately leveraged as coverage gets softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on SUI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Sun Communities scores weak on the Cluenex quality check (4.3 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 26, 2026.
See SUI today
- Today's verdict on SUI, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Sun Communities (SUI)”, https://cluenex.com/stocks/sui/, data as of Oct 10, 2026.