Company Overview
UMH Properties, Inc. operates as a public equity REIT that owns and operates 145 manufactured home communities, encompassing approximately 27,000 developed homesites with 10,800 rental homes and over 1,000 self-storage units. The company functions within the Real Estate sector and the REIT - Residential industry, a classification that signifies its primary focus on housing investment and management rather than manufacturing or service sectors unrelated to real estate holdings. As of the latest available data, the entity holds a market capitalization of $1.22B and generates annual revenue of $261.32M, supported by a workforce of 540 employees. These valuation and revenue figures indicate that UMH Properties maintains a mid-to-large-scale position within the specialized manufactured housing market, demonstrating sufficient asset depth to support significant operational expenses while retaining a substantial asset base for long-term income generation.
Financial Health
The company reported a revenue of $261.32M for the trailing twelve months, with a net income of $5.97M and an EBITDA of $115.07M. The substantial disparity between the $261.32M revenue and the $5.97M net income reveals a cost structure where operating expenses, including debt service and property management fees, consume a significant portion of top-line earnings before arriving at the bottom line. Despite the lower net income, the EBITDA of $115.07M highlights the operational cash generation capability of the underlying real estate assets prior to financing costs. The free cash flow stands at $63.65M, which indicates that the company retains sufficient liquidity to cover capital expenditures and maintain its property portfolio without relying heavily on external financing for day-to-day operational needs. Profitability metrics show a gross margin of 54.6%, an operating margin of 20.7%, and a profit margin of 10.1%, suggesting that while the company captures more than half of revenue as gross profit, significant overhead costs reduce the final profit to roughly one-tenth of sales. Liquidity analysis shows the company holds $72.10M in cash against total debt of $763.93M, resulting in a debt-to-equity ratio of 84.21% which characterizes a highly leveraged balance sheet typical for REITs but requiring careful interest rate management. The current ratio of 3.29 suggests strong short-term liquidity, indicating that the company holds more than three times the value of current assets relative to its current liabilities. Return on equity is recorded at 2.9% and return on assets at 1.9%, figures that reveal management effectiveness in generating returns relative to shareholder equity and total assets, respectively, within the constraints of high leverage.
Valuation Assessment
The trailing twelve-month P/E ratio is 204.43, while the forward P/E is 84.18, a difference that implies the market expects a significant improvement in earnings trajectory or a re-rating of the stock based on anticipated future performance. The price-to-book ratio stands at 2.08, indicating that the market values the company at more than double its book value, suggesting a premium assigned to the quality of its assets and brand. Alternative valuation metrics include a price-to-sales ratio of 4.67 and an EV/EBITDA of 19.41, which provide context by comparing the stock price directly to revenue and enterprise value to earnings, respectively, offering a different perspective on valuation than the P/E alone. The stock has traded between a 52-week high of $19.02 and a 52-week low of $13.93, with the current price positioning the stock within this established trading range. The beta of 1.03 indicates that the stock price volatility is slightly higher than the broader market, moving in tandem with general market fluctuations but with a slight amplification of risk.
Growth & Income
Revenue growth year-over-year is recorded at 8.2%, while earnings growth is listed as N/A, indicating that while top-line sales are expanding, the bottom-line earnings data is not currently available for comparative growth analysis. For dividend payers, the dividend yield is 6.3% with a payout ratio of 1271.4%, a figure that mathematically indicates the dividend paid far exceeds the reported net income, a common occurrence in REITs where distributions are funded by cash flow and asset appreciation rather than accounting profits. The high payout ratio suggests that the company relies on non-accounting earnings sources like EBITDA to fund dividends, which investors must evaluate against the company's ability to sustain those payments under varying interest rate environments. Overall, the company presents a profile characterized by steady revenue expansion and a high-income yield, though the lack of reported earnings growth and an elevated payout ratio require careful scrutiny regarding the sustainability of current income levels relative to the company's operational cash flow.