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Umh Properties (UMH)
NYSE:UMH
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Umh
(NYSE:UMH)
Rating:65Neutral
Price Target:
$18.50
▲( 12.33% Upside)
Positive Factors
Acquisition Strategy
UMH's value-add acquisition strategy allows the company to purchase communities at reasonable prices, improve them, and increase occupancy and pricing, leading to impressive NOI growth.
Dividend Increase
The Board of Directors approved an increase of the quarterly dividend to $0.225, marking the 5th consecutive year the company has increased the dividend, representing a total increase of 25%.
Future Development
UMH has 3,300 vacant sites for future development, providing a source of long-term earnings and value.
Negative Factors
Earnings Estimate
The company lowered its 2025 core FFO estimate to $0.98, from $1.06, reflecting some caution.
Sector Risk
If there is a risk for the sector, it is the valuation gap could narrow in the event of a cycle reversal.
Umh (UMH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.38B
Dividend Yield5.25%
Average Volume (3M)381.61K
Price to Earnings (P/E)147.2
Beta (1Y)0.53
Revenue Growth8.01%
EPS GrowthN/A
CountryUS
Employees513
SectorReal Estate
Sector Strength64
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.00
Shares Outstanding84,075,330
10 Day Avg. Volume428,128
30 Day Avg. Volume381,614
Financial Highlights & Ratios
PEG Ratio1.64
Price to Book (P/B)1.55
Price to Sales (P/S)0.00
P/FCF Ratio30.18
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit10.79
Enterprise Value/Ebitda3.27
Forecast
1Y Price Target
$20.70Price Target Upside25.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Umh Business Overview & Revenue Model
Company Descriptionnull
How the Company Makes Moneynull
Umh Financial Statement Overview
Summary
UMH has demonstrated solid revenue growth with a healthy gross profit margin and improving net profit margin, indicating effective cost management. The balance sheet shows a balanced capital structure, though leverage has increased. Cash flows are robust, supporting operational and investment activities.Income Statement
Umh has demonstrated solid revenue growth over recent periods, with a TTM revenue of $244.1M showing a positive trend. The gross profit margin is healthy at 54.9%, indicating good control over production costs. The net profit margin stands at 11.5% for TTM, which is a significant improvement from previous years, reflecting effective cost management and operational efficiency. However, the decline in EBIT margin compared to historical performance indicates some pressure on operating profitability.78
Positive
Balance Sheet
The company's debt-to-equity ratio of 0.66 indicates a balanced capital structure, though leverage has increased slightly over time. Return on equity is improving, currently at 3.1%, showcasing enhanced profitability relative to shareholders' equity. The equity ratio of 59% suggests a strong equity base providing stability. However, the increase in debt levels requires close monitoring to ensure long-term sustainability.70
Positive
Cash Flow
Operating cash flow is robust at $75.3M in TTM, covering free cash flow needs and indicating strong cash generation capability. The free cash flow to net income ratio is high, signaling effective cash management. The operating cash flow to net income ratio of 2.68 highlights efficient conversion of profits into cash. However, fluctuations in free cash flow growth need attention for future planning.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 244.10M | 240.55M | 220.93M | 195.78M | 186.10M | 163.61M | Gross Profit |
| 134.13M | 131.30M | 118.49M | 102.55M | 97.96M | 86.02M | EBIT |
| 42.76M | 42.46M | 92.36M | 34.18M | 37.92M | 31.95M | EBITDA |
| 115.78M | 108.97M | 96.05M | 82.95M | 83.05M | 73.66M | Net Income Common Stockholders |
| 28.08M | 21.64M | 8.01M | -31.41M | 31.30M | -13.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 65.53M | 131.60M | 91.83M | 71.96M | 229.92M | 118.51M | Total Assets |
| 1.55B | 1.56B | 1.43B | 1.34B | 1.27B | 1.09B | Total Debt |
| 606.30M | 614.72M | 690.02M | 761.68M | 499.32M | 556.29M | Net Debt |
| 571.10M | 515.00M | 632.70M | 731.89M | 383.15M | 540.95M | Total Liabilities |
| 635.11M | 647.82M | 720.78M | 793.40M | 528.68M | 585.41M | Stockholders Equity |
| 912.36M | 914.03M | 704.72M | 548.96M | 742.14M | 501.81M |
| Cash Flow | Free Cash Flow | ||||
| 75.33M | 81.60M | 120.08M | -89.09M | 65.16M | 66.38M | Operating Cash Flow |
| 75.33M | 81.60M | 120.08M | -7.98M | 65.16M | 69.04M | Investing Cash Flow |
| -170.85M | -139.87M | -165.57M | -124.12M | -94.36M | -103.77M | Financing Cash Flow |
| 92.79M | 102.64M | 69.06M | 47.95M | 125.63M | 44.33M |
Umh Technical Analysis
Negative
16.47
Price Trends
17.35
Negative
17.58
Negative
18.09
Negative
Market Momentum
-0.19
Positive
37.68
Neutral
14.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMH, the sentiment is Negative. The current price of 16.47 is below the 20-day moving average (MA) of 17.04, below the 50-day MA of 17.35, and below the 200-day MA of 18.09, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UMH.
Umh Risk Analysis
Umh disclosed 63 risk factors in its most recent earnings report. Umh reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We operate in an intensely competitive business environment. We may not be as successful as our competitors incorporating AI into our business or adapting to a rapidly changing marketplace. Q4, 2024
2.
Many of our costs may be adversely impacted by continued heightened inflation. Q4, 2024
Umh Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.08B | ― | -1.55% | 4.92% | -1.81% | -33.33% | |
65 Neutral | $1.38B | 147.17 | 3.45% | 5.25% | 8.01% | ― | |
60 Neutral | $2.76B | 10.33 | 0.49% | 8508.28% | 5.95% | -17.56% | |
55 Neutral | $863.68M | 866.19 | -7.19% | 5.63% | -7.44% | -143.64% | |
54 Neutral | $288.46M | ― | -4.28% | 6.53% | 2.39% | -407.57% | |
52 Neutral | $1.36B | ― | -2.76% | 1.96% | -3.20% | 76.43% | |
48 Neutral | $1.11B | ― | -48.27% | ― | 9.28% | 34.42% |
* Real Estate Sector Average
Performance Comparison
UMH
Umh
16.47
2.09
14.53%
AIV
Apartment Investment & Management
7.80
0.37
4.98%
VRE
Veris Residential
14.58
0.11
0.76%
CSR
Centerspace
61.16
-2.87
-4.48%
BRT
BRT Apartments
15.26
-0.86
-5.33%
NXRT
NexPoint Residential
33.30
-1.31
-3.79%
Umh Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -6.05%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented several positive developments such as increased FFO, dividend growth, and strong rental revenue. However, these were balanced by challenges including a decline in gross home sales, increased expenses, and potential tariff impacts, leading to a balanced overall sentiment.Q1-2025 Updates
Positive Updates
Increase in Normalized FFO
Normalized FFO for Q1 2025 increased to $0.23 per diluted share from $0.22 last year, a 5% increase.
Dividend Increase
The company increased its common stock dividend by $0.04 per share annually to $0.90, marking a 4.7% increase over last year.
Rental and Related Revenue Growth
Rental and related revenue increased by 8% in Q1 2025 compared to the previous year.
Strong Sales Pipeline
April home sales closed at $4.4 million, with a strong sales pipeline of $4.4 million, indicating robust demand.
Successful Acquisition
Acquisition of two communities in Mantua, New Jersey, for $24.6 million, with potential for rent increases through vacancy decontrol.
Negative Updates
Gross Home Sales Decline
Gross home sales for Q1 2025 were $6.7 million, down from $7.4 million last year, representing a decrease of approximately 9.5%.
Increased Operating Expenses
Community operating expenses increased by 9%, driven by higher payroll costs, real estate taxes, snow removal, and utility expenses.
Impact of Tariffs
Concerns about the potential impact of tariffs on home prices and supply chain disruptions, with prices already up 3-5%.
Challenges with GSE Financing
Current GSE financing does not include rental homes, only the income from the site, limiting LTV ratios.
Company Guidance
During the UMH Properties First Quarter 2025 Earnings Conference Call, the company reported several positive financial metrics and strategic updates. Normalized funds from operations (FFO) increased by 5% to $0.23 per diluted share, up from $0.22 the previous year. Rental and related revenue grew by 8%, while expenses and community net operating income (NOI) also rose by 8%. The company announced a 4.7% increase in its annual dividend to $0.90 per share, marking the fifth consecutive year of dividend growth. UMH's expansion and development plans include adding 800 new rental homes and developing over 150 sites this year. The company has $45 million invested in expansions not yet yielding expected returns but is optimistic about future profitability as occupancy increases. UMH closed on acquisitions worth $24.6 million in New Jersey and plans further acquisitions in Maryland. The company maintains strong liquidity with $35.2 million in cash and access to $260 million on its revolving credit facility. Despite challenges, UMH remains confident in achieving its full-year 2025 FFO guidance range of $0.96 to $1.04 per diluted share.Umh Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
UMH Expands Fannie Mae Credit Facility
Positive
May 19, 2025
On May 15, 2025, UMH Properties, Inc. expanded its Fannie Mae credit facility by adding ten communities comprising 2,001 sites, securing approximately $101.4 million through Wells Fargo Bank. This refinancing, with a fixed interest rate of 5.855% over a 10-year term, aims to fund further acquisitions, expansions, and debt repayment. The appraisal valued these communities at $163.5 million, significantly higher than the company’s investment of $66.6 million, highlighting a 146% increase in value. This strategic move underscores UMH’s ability to enhance property value through acquisitions and improvements, supporting its mission to provide affordable housing and generate long-term shareholder returns.
The most recent analyst rating on (UMH) stock is a Buy with a $20.50 price target. To see the full list of analyst forecasts on Umh stock, see the UMH Stock Forecast page.
Financial Disclosures
UMH Properties Reports First-Quarter 2025 Results
Neutral
May 1, 2025
On May 1, 2025, UMH Properties, Inc. announced its first-quarter results for March 31, 2025, along with a supplemental information package for its earnings conference call. The announcement highlighted various risks and uncertainties impacting the company’s operations, such as changes in real estate market conditions, competition, and economic factors, which could affect its ability to maintain rental rates, acquire properties, and manage debt obligations.
Financial Disclosures
Umh Updates Investors on Q1 2025 Results
Neutral
Apr 3, 2025
On April 2, 2025, Umh provided investors with an update on its first quarter 2025 operating results. The company clarified that the information shared is not considered ‘filed’ for any legal purposes under the Securities Exchange Act of 1934 or the Securities Act of 1933, unless specifically incorporated by reference into any such filing.
DividendsBusiness Operations and Strategy
UMH Properties Increases Quarterly Dividend by 4.7%
Positive
Apr 2, 2025
On April 1, 2025, UMH Properties, Inc. announced a 4.7% increase in its quarterly common stock dividend, raising it to $0.225 per share, payable on June 16, 2025. This marks the fifth consecutive annual increase, reflecting the company’s robust revenue growth and strategic positioning for future expansions and acquisitions, supported by a strong balance sheet.
Financial Disclosures
UMH Properties Announces Q4 and Full Year 2024 Results
Neutral
Feb 26, 2025
On February 26, 2025, UMH Properties, Inc. announced its financial results for the fourth quarter and the full year ending December 31, 2024. The release highlighted the company’s operational performance and provided a supplemental information package for its earnings conference call. The announcement emphasized various risks and uncertainties impacting the company’s operations, including real estate market conditions, competition, and economic factors, which could affect its future performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.