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UMHPD.PFD (UMH Properties) Financial Strength : 5 (As of Sep. 2024)


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What is UMH Properties Financial Strength?

UMH Properties has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

UMH Properties's Interest Coverage for the quarter that ended in Sep. 2024 was 1.80. UMH Properties's debt to revenue ratio for the quarter that ended in Sep. 2024 was 2.53. As of today, UMH Properties's Altman Z-Score is 1.85.


Competitive Comparison of UMH Properties's Financial Strength

For the REIT - Residential subindustry, UMH Properties's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


UMH Properties's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, UMH Properties's Financial Strength distribution charts can be found below:

* The bar in red indicates where UMH Properties's Financial Strength falls into.



UMH Properties Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

UMH Properties's Interest Expense for the months ended in Sep. 2024 was $-6.52 Mil. Its Operating Income for the months ended in Sep. 2024 was $11.76 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $614.94 Mil.

UMH Properties's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*11.76/-6.524
=1.80

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

UMH Properties's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 614.944) / 242.684
=2.53

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

UMH Properties has a Z-score of 1.85, indicating it is in Grey Zones. This implies that UMH Properties is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.85 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


UMH Properties  (NYSE:UMHpD.PFD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

UMH Properties has the Financial Strength Rank of 5.


UMH Properties Financial Strength Related Terms

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UMH Properties Business Description

Traded in Other Exchanges
Address
3499 Route 9, Suite 3C, Freehold, NJ, USA, 07728
UMH Properties Inc together with its subsidiaries is a real estate investment trust. It is engaged in the business of ownership and operation of manufactured home communities - leasing manufactured homesites to residents . The Company also leases manufactured homes to residents and, through its wholly-owned taxable REIT subsidiary, UMH Sales and Finance, Inc. sells and finances the sale of manufactured homes to residents and prospective residents of its communities and for placement on customers' privately-owned land. The company also owns the land, utility connections, streets, lighting, driveways, common area amenities, and other capital improvements. It earns income from lease agreements for their sites and homes, where the company is the lessor.