TANGER INC (SKT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKT - US8754651060 - REIT
33.37 USD
-0.69 (-2.03%)
33.37 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SKT. SKT was compared to 127 industry peers in the Diversified REITs industry. SKT scores excellent on profitability, 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
SKT had positive earnings in the past year.
In the past year SKT had a positive cash flow from operations.
Of the past 5 years SKT 4 years were profitable.
SKT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.06%, SKT belongs to the best of the industry, outperforming 84.25% of the companies in the same industry.
With an excellent Return On Equity value of 15.20%, SKT belongs to the best of the industry, outperforming 92.13% of the companies in the same industry.
The Return On Invested Capital of SKT (5.37%) is better than 96.06% 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 3.06%.
The last Return On Invested Capital (5.37%) for SKT is above the 3 year average (4.98%), which is a sign of increasing profitability.
| 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
SKT's Profit Margin of 19.03% is fine compared to the rest of the industry. SKT outperforms 66.14% of its industry peers.
SKT's Profit Margin has been stable in the last couple of years.
SKT has a better Operating Margin (29.59%) than 60.63% of its industry peers.
SKT's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 69.49%, SKT perfoms like the industry average, outperforming 56.69% of the companies in the same 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.
The number of shares outstanding for SKT has been increased compared to 1 year ago.
SKT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SKT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that SKT is in the distress zone and has some risk of bankruptcy.
SKT's Altman-Z score of 1.31 is amongst the best of the industry. SKT outperforms 86.61% 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.
SKT's Debt to Equity ratio of 2.29 is on the low side compared to the rest of the industry. SKT is outperformed by 71.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
ROIC/WACC0.74
WACC7.21%
2.3 Liquidity
SKT has a Current 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 worse Current ratio (0.74) than 62.20% 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 comparable to the rest of the industry: SKT outperforms 40.16% 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.
The Earnings Per Share has been growing by 8.70% on average over the past years. This is quite good.
SKT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.59%.
SKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.92% yearly.
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
SKT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
Based on estimates for the next years, SKT will show a small growth in Revenue. The Revenue will grow by 6.23% on average per year.
EPS Next Y4.44%
EPS Next 2Y27%
EPS Next 3Y9.48%
EPS Next 5YN/A
Revenue Next Year9.19%
Revenue Next 2Y6.88%
Revenue Next 3Y6.23%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SKT is valuated quite expensively with a Price/Earnings ratio of 34.40.
SKT's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.51. SKT is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 23.51, which indicates a rather expensive current valuation of SKT.
SKT's Price/Forward Earnings ratio is rather cheap when compared to the industry. SKT is cheaper than 85.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SKT to the average of the S&P500 Index (23.13), we can say SKT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.4 | ||
| Fwd PE | 23.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKT is valued a bit more expensive than the industry average as 70.87% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.42 |
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)7.74
PEG (5Y)3.96
EPS Next 2Y27%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
SKT has a Yearly Dividend Yield of 3.41%.
SKT's Dividend Yield is slightly below the industry average, which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.00, SKT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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 2Y27%
EPS Next 3Y9.48%
33.37
-0.69 (-2.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.31%
Inst Owner Change0.5%
Ins Owners2.26%
Ins Owner Change-0.65%
Market Cap3.84B
Revenue(TTM)562.00M
Net Income(TTM)106.92M
Analysts75
Price Target37.46 (12.26%)
Short Float %3.82%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend1.09
Dividend Growth(5Y)-5.24%
DP120.63%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)3.97%
PT rev (1m)0.75%
PT rev (3m)4.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.95%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.4 | ||
| Fwd PE | 23.51 | ||
| P/S | 6.83 | ||
| P/FCF | N/A | ||
| P/OCF | 13.27 | ||
| P/B | 5.46 | ||
| P/tB | 5.46 | ||
| EV/EBITDA | 17.42 |
EPS(TTM)0.97
EY2.91%
EPS(NY)1.42
Fwd EY4.25%
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)2.51
OCFY7.53%
SpS4.88
BVpS6.11
TBVpS6.11
PEG (NY)7.74
PEG (5Y)3.96
Graham Number11.55
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 | 1.31 |
F-Score4
WACC7.21%
ROIC/WACC0.74
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 Y4.44%
EPS Next 2Y27%
EPS Next 3Y9.48%
EPS Next 5YN/A
Revenue 1Y (TTM)9.59%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.18%
Revenue Next Year9.19%
Revenue Next 2Y6.88%
Revenue Next 3Y6.23%
Revenue Next 5YN/A
EBIT growth 1Y14.84%
EBIT growth 3Y11.06%
EBIT growth 5Y0.97%
EBIT Next Year112.97%
EBIT Next 3Y32.46%
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.
Can you provide the valuation status for TANGER INC?
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 financial health of TANGER INC (SKT) stock?
The financial health rating of TANGER INC (SKT) is 1 / 10.
Can you provide the dividend sustainability for SKT stock?
The dividend rating of TANGER INC (SKT) is 3 / 10 and the dividend payout ratio is 120.63%.