Last Updated: 12 Nov 2024
Executive Summary
UMH Properties Inc. (UMH) is a publicly traded REIT specializing in manufactured home communities. With a market capitalization of $1.54 billion, UMH owns and operates 124 communities with approximately 23,400 developed lots. The company's recent financial performance has been solid, with quarterly earnings growth of 46.89% and revenue growth of 0.084%. Analysts are generally positive on UMH, with 2 strong buy and 3 buy ratings. The current stock price of $19.53 is below the analyst target price of $21.63.
Company Overview
UMH Properties was founded in 1968 and is headquartered in Freehold, New Jersey. The company's primary business is owning and operating manufactured home communities, which provide affordable housing options to residents. UMH's communities are located in 10 states across the eastern United States.
Fundamental Analysis
UMH's financial performance has been mixed in recent years. Revenue has been relatively flat, but earnings have grown significantly. In 2023, UMH reported revenue of $235.2 million and net income of $26.7 million. The company's profit margin is 11.9%, and its return on equity is 3.61%.
UMH's balance sheet is strong, with $1.2 billion in assets and $347.6 million in debt. The company's debt-to-equity ratio is 0.29, which is a conservative level. UMH also has a strong cash position, with $42.2 million in cash and equivalents.
Technical Analysis
UMH's stock price has been trending sideways in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 45.6, which is in neutral territory. The moving average convergence divergence (MACD) indicator is also neutral.
Short Term Outlook
In the short term, UMH's stock price is likely to continue to trade sideways. The company's financial performance is solid, but the stock price is already trading at a premium to its intrinsic value. Investors should wait for a pullback before buying UMH stock.
Long Term Outlook
In the long term, UMH's stock price is likely to appreciate. The company's business model is sound, and the demand for affordable housing is expected to continue to grow. Investors who are willing to hold UMH stock for the long term should be rewarded with solid returns.
Analyst Recommendations
Analysts are generally positive on UMH Properties. Two analysts have a strong buy rating on the stock, and three analysts have a buy rating. The average analyst target price is $21.63, which represents a potential upside of 10.7% from the current price.
