TANGER INC (SKT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKT - US8754651060 - REIT
33.48 USD
+0.61 (+1.86%)
33.48 USD
0 (0%)
Overall SKT gets a fundamental rating of 4 out of 10. We evaluated SKT against 128 industry peers in the Diversified REITs industry. SKT has an excellent profitability rating, but there are concerns on its financial health. SKT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SKT was profitable.
SKT had a positive operating cash flow in the past year.
SKT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SKT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.06%, SKT belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.20%, SKT belongs to the top of the industry, outperforming 94.53% of the companies in the same industry.
The Return On Invested Capital of SKT (5.37%) is better than 96.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SKT is in line with the industry average of 3.04%.
The 3 year average ROIC (4.98%) for SKT is below the current ROIC(5.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 15.2% | ||
| ROIC | 5.37% |
ROA(3y)3.99%
ROA(5y)2.13%
ROE(3y)16.26%
ROE(5y)7.93%
ROIC(3y)4.98%
ROIC(5y)4.56%
1.3 Margins
Looking at the Profit Margin, with a value of 19.03%, SKT is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
SKT's Profit Margin has been stable in the last couple of years.
SKT's Operating Margin of 29.59% is fine compared to the rest of the industry. SKT outperforms 60.16% of its industry peers.
SKT's Operating Margin has been stable in the last couple of years.
The Gross Margin of SKT (69.49%) is comparable to the rest of the industry.
SKT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.59% | ||
| PM (TTM) | 19.03% | ||
| GM | 69.49% |
OM growth 3Y3.56%
OM growth 5Y-0.93%
PM growth 3Y111.98%
PM growth 5Y0.53%
GM growth 3Y0.76%
GM growth 5Y0.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SKT is destroying value.
Compared to 1 year ago, SKT has more shares outstanding
SKT has more shares outstanding than it did 5 years ago.
SKT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that SKT is in the distress zone and has some risk of bankruptcy.
SKT has a Altman-Z score of 1.27. This is amongst the best in the industry. SKT outperforms 85.94% of its industry peers.
SKT has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.29, SKT is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.75
WACC7.14%
2.3 Liquidity
A Current Ratio of 0.74 indicates that SKT may have some problems paying its short term obligations.
SKT has a Current ratio of 0.74. This is in the lower half of the industry: SKT underperforms 66.41% of its industry peers.
SKT has a Quick Ratio of 0.74. This is a bad value and indicates that SKT is not financially healthy enough and could expect problems in meeting its short term obligations.
SKT has a Quick ratio of 0.74. This is in the lower half of the industry: SKT underperforms 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
SKT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.49%, which is quite good.
Measured over the past years, SKT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.70% on average per year.
SKT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.59%.
The Revenue has been growing slightly by 1.92% on average over the past years.
EPS 1Y (TTM)11.49%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%27.27%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.18%
3.2 Future
The Earnings Per Share is expected to grow by 7.59% on average over the next years.
Based on estimates for the next years, SKT will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y3.3%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue Next Year8.82%
Revenue Next 2Y6.71%
Revenue Next 3Y5.99%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.52, which means the current valuation is very expensive for SKT.
SKT's Price/Earnings ratio is a bit cheaper when compared to the industry. SKT is cheaper than 64.84% of the companies in the same industry.
SKT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 31.87, the valuation of SKT can be described as expensive.
SKT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SKT is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. SKT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 31.87 |
4.2 Price Multiples
73.44% of the companies in the same industry are cheaper than SKT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SKT does not grow enough to justify the current Price/Earnings ratio.
SKT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)10.47
PEG (5Y)3.97
EPS Next 2Y9.25%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.56%, SKT has a reasonable but not impressive dividend return.
SKT's Dividend Yield is slightly below the industry average, which is at 6.50.
Compared to an average S&P500 Dividend Yield of 2.45, SKT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of SKT decreases each year by -5.24%.
SKT has paid a dividend for at least 10 years, which is a reliable track record.
SKT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.24%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
120.63% of the earnings are spent on dividend by SKT. This is not a sustainable payout ratio.
DP120.63%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
33.48
+0.61 (+1.86%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.95%
Inst Owner Change1.06%
Ins Owners2.31%
Ins Owner Change-0.69%
Market Cap3.79B
Revenue(TTM)562.00M
Net Income(TTM)106.92M
Analysts77.5
Price Target37.18 (11.05%)
Short Float %4.58%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend1.09
Dividend Growth(5Y)-5.24%
DP120.63%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.61%
Min EPS beat(2)-16.37%
Max EPS beat(2)13.15%
EPS beat(4)2
Avg EPS beat(4)1.82%
Min EPS beat(4)-16.37%
Max EPS beat(4)16.19%
EPS beat(8)6
Avg EPS beat(8)5.06%
EPS beat(12)9
Avg EPS beat(12)16.78%
EPS beat(16)12
Avg EPS beat(16)17.81%
Revenue beat(2)2
Avg Revenue beat(2)5.21%
Min Revenue beat(2)4.76%
Max Revenue beat(2)5.67%
Revenue beat(4)4
Avg Revenue beat(4)5.79%
Min Revenue beat(4)4.76%
Max Revenue beat(4)7.78%
Revenue beat(8)8
Avg Revenue beat(8)4.99%
Revenue beat(12)11
Avg Revenue beat(12)4.44%
Revenue beat(16)15
Avg Revenue beat(16)3.98%
PT rev (1m)0.85%
PT rev (3m)4.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)35.24%
EPS NY rev (1m)-4.93%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 31.87 | ||
| P/S | 6.74 | ||
| P/FCF | N/A | ||
| P/OCF | 13.09 | ||
| P/B | 5.38 | ||
| P/tB | 5.38 | ||
| EV/EBITDA | 17.03 |
EPS(TTM)0.97
EY2.9%
EPS(NY)1.05
Fwd EY3.14%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)2.56
OCFY7.64%
SpS4.97
BVpS6.22
TBVpS6.22
PEG (NY)10.47
PEG (5Y)3.97
Graham Number11.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 15.2% | ||
| ROCE | 6.79% | ||
| ROIC | 5.37% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 5.4% | ||
| OM | 29.59% | ||
| PM (TTM) | 19.03% | ||
| GM | 69.49% | ||
| FCFM | N/A |
ROA(3y)3.99%
ROA(5y)2.13%
ROE(3y)16.26%
ROE(5y)7.93%
ROIC(3y)4.98%
ROIC(5y)4.56%
ROICexc(3y)5.21%
ROICexc(5y)4.8%
ROICexgc(3y)5.21%
ROICexgc(5y)4.8%
ROCE(3y)6.31%
ROCE(5y)5.77%
ROICexgc growth 3Y5.08%
ROICexgc growth 5Y0.54%
ROICexc growth 3Y5.08%
ROICexc growth 5Y0.55%
OM growth 3Y3.56%
OM growth 5Y-0.93%
PM growth 3Y111.98%
PM growth 5Y0.53%
GM growth 3Y0.76%
GM growth 5Y0.28%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.16 | ||
| Cap/Depr | 232.77% | ||
| Cap/Sales | 60.53% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 92.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.27 |
F-Score4
WACC7.14%
ROIC/WACC0.75
Cap/Depr(3y)209.92%
Cap/Depr(5y)139.93%
Cap/Sales(3y)50.97%
Cap/Sales(5y)34.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.49%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%27.27%
EPS Next Y3.3%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue 1Y (TTM)9.59%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.18%
Revenue Next Year8.82%
Revenue Next 2Y6.71%
Revenue Next 3Y5.99%
Revenue Next 5YN/A
EBIT growth 1Y14.84%
EBIT growth 3Y11.06%
EBIT growth 5Y0.97%
EBIT Next Year111.02%
EBIT Next 3Y31.49%
EBIT Next 5YN/A
FCF growth 1Y-161.4%
FCF growth 3Y-23.27%
FCF growth 5Y-14.91%
OCF growth 1Y18.99%
OCF growth 3Y6.19%
OCF growth 5Y3.4%
TANGER INC / SKT FAQ
What is the ChartMill fundamental rating of TANGER INC (SKT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SKT.
What is the valuation status of TANGER INC (SKT) stock?
ChartMill assigns a valuation rating of 2 / 10 to TANGER INC (SKT). This can be considered as Overvalued.
What is the profitability of SKT stock?
TANGER INC (SKT) has a profitability rating of 7 / 10.
What is the earnings growth outlook for TANGER INC?
The Earnings per Share (EPS) of TANGER INC (SKT) is expected to grow by 3.3% in the next year.
Is the dividend of TANGER INC sustainable?
The dividend rating of TANGER INC (SKT) is 3 / 10 and the dividend payout ratio is 120.63%.