TANGER INC (SKT)
US8754651060 - REIT
SKT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While SKT has a great profitability rating, there are quite some concerns on its financial health. SKT does not seem to be growing, but still is valued expensively.
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 4.17%, SKT belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
With an excellent Return On Equity value of 16.69%, SKT belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.44%, SKT belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SKT is in line with the industry average of 3.08%.
The last Return On Invested Capital (5.44%) for SKT is above the 3 year average (4.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 16.69% | ||
| ROIC | 5.44% |
ROA(3y)2.75%
ROA(5y)2.07%
ROE(3y)11.85%
ROE(5y)8.93%
ROIC(3y)4.64%
ROIC(5y)4.55%
1.3 Margins
The Profit Margin of SKT (18.50%) is better than 75.78% of its industry peers.
In the last couple of years the Profit Margin of SKT has grown nicely.
The Operating Margin of SKT (28.24%) is better than 60.94% of its industry peers.
In the last couple of years the Operating Margin of SKT has declined.
SKT's Gross Margin of 69.74% is in line compared to the rest of the industry. SKT outperforms 56.25% of its industry peers.
SKT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.24% | ||
| PM (TTM) | 18.5% | ||
| GM | 69.74% |
OM growth 3Y8.72%
OM growth 5Y-1.95%
PM growth 3YN/A
PM growth 5Y19.74%
GM growth 3Y1.41%
GM growth 5Y0.01%
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
Compared to 5 years ago, SKT has more shares outstanding
The debt/assets ratio for SKT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that SKT is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.44, SKT belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
A Debt/Equity ratio of 2.51 is on the high side and indicates that SKT has dependencies on debt financing.
SKT has a Debt to Equity ratio of 2.51. This is amonst the worse of the industry: SKT underperforms 80.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.74
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.75 indicates that SKT may have some problems paying its short term obligations.
SKT's Current ratio of 0.75 is on the low side compared to the rest of the industry. SKT is outperformed by 74.22% of its industry peers.
SKT has a Quick Ratio of 0.75. 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 Quick ratio (0.75) than 71.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
SKT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.14%.
Measured over the past years, SKT shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.84% on average per year.
Looking at the last year, SKT shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
The Revenue has been decreasing by -1.26% on average over the past years.
EPS 1Y (TTM)-1.14%
EPS 3Y145.31%
EPS 5Y-0.84%
EPS Q2Q%-15.38%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y5.99%
Revenue growth 5Y-1.26%
Sales Q2Q%13.34%
3.2 Future
The Earnings Per Share is expected to grow by 0.69% on average over the next years.
SKT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.05% yearly.
EPS Next Y-11.49%
EPS Next 2Y-1.14%
EPS Next 3Y0.69%
EPS Next 5YN/A
Revenue Next Year12.62%
Revenue Next 2Y8.18%
Revenue Next 3Y6.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 39.47, the valuation of SKT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SKT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.73, SKT is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 37.78, the valuation of SKT can be described as expensive.
Based on the Price/Forward Earnings ratio, SKT is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.83. SKT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.47 | ||
| Fwd PE | 37.78 |
4.2 Price Multiples
79.69% 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 | 18.6 |
4.3 Compensation for Growth
SKT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.14%
EPS Next 3Y0.69%
5. Dividend
5.1 Amount
SKT has a Yearly Dividend Yield of 3.10%.
SKT's Dividend Yield is slightly below the industry average, which is at 15.68.
Compared to an average S&P500 Dividend Yield of 2.24, SKT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
The dividend of SKT decreases each year by -6.91%.
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)-6.91%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
123.58% of the earnings are spent on dividend by SKT. This is not a sustainable payout ratio.
DP123.58%
EPS Next 2Y-1.14%
EPS Next 3Y0.69%
TANGER INC
NYSE:SKT (12/20/2024, 8:04:00 PM)
After market: 34.34 0 (0%)34.34
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.78%
Inst Owner Change3.09%
Ins Owners3.58%
Ins Owner Change-1.74%
Market Cap3.80B
Analysts78.33
Price Target38.76 (12.87%)
Short Float %3.01%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Dividend Growth(5Y)-6.91%
DP123.58%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.63%
Min EPS beat(2)5.4%
Max EPS beat(2)19.85%
EPS beat(4)4
Avg EPS beat(4)8.3%
Min EPS beat(4)3.72%
Max EPS beat(4)19.85%
EPS beat(8)7
Avg EPS beat(8)24.26%
EPS beat(12)10
Avg EPS beat(12)23.14%
EPS beat(16)12
Avg EPS beat(16)29.86%
Revenue beat(2)2
Avg Revenue beat(2)4.9%
Min Revenue beat(2)4.63%
Max Revenue beat(2)5.17%
Revenue beat(4)4
Avg Revenue beat(4)4.18%
Min Revenue beat(4)0.9%
Max Revenue beat(4)6.03%
Revenue beat(8)7
Avg Revenue beat(8)3.76%
Revenue beat(12)11
Avg Revenue beat(12)3.38%
Revenue beat(16)15
Avg Revenue beat(16)5.05%
PT rev (1m)16.92%
PT rev (3m)25.27%
EPS NQ rev (1m)-4.1%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.47 | ||
| Fwd PE | 37.78 | ||
| P/S | 7.41 | ||
| P/FCF | N/A | ||
| P/OCF | 15.41 | ||
| P/B | 6.69 | ||
| P/tB | 6.69 | ||
| EV/EBITDA | 18.6 |
EPS(TTM)0.87
EY2.53%
EPS(NY)0.91
Fwd EY2.65%
FCF(TTM)-1.49
FCFYN/A
OCF(TTM)2.23
OCFY6.49%
SpS4.63
BVpS5.13
TBVpS5.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 16.69% | ||
| ROCE | 6.88% | ||
| ROIC | 5.44% | ||
| ROICexc | 5.47% | ||
| ROICexgc | 5.47% | ||
| OM | 28.24% | ||
| PM (TTM) | 18.5% | ||
| GM | 69.74% | ||
| FCFM | N/A |
ROA(3y)2.75%
ROA(5y)2.07%
ROE(3y)11.85%
ROE(5y)8.93%
ROIC(3y)4.64%
ROIC(5y)4.55%
ROICexc(3y)4.95%
ROICexc(5y)4.77%
ROICexgc(3y)4.95%
ROICexgc(5y)4.77%
ROCE(3y)5.87%
ROCE(5y)5.75%
ROICexcg growth 3Y11.84%
ROICexcg growth 5Y-1.58%
ROICexc growth 3Y11.84%
ROICexc growth 5Y-1.53%
OM growth 3Y8.72%
OM growth 5Y-1.95%
PM growth 3YN/A
PM growth 5Y19.74%
GM growth 3Y1.41%
GM growth 5Y0.01%
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 303.58% | ||
| Cap/Sales | 80.28% | ||
| Interest Coverage | 2.55 | ||
| Cash Conversion | 88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.44 |
F-Score6
WACC7.39%
ROIC/WACC0.74
Cap/Depr(3y)180.3%
Cap/Depr(5y)121.32%
Cap/Sales(3y)43.08%
Cap/Sales(5y)29.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.14%
EPS 3Y145.31%
EPS 5Y-0.84%
EPS Q2Q%-15.38%
EPS Next Y-11.49%
EPS Next 2Y-1.14%
EPS Next 3Y0.69%
EPS Next 5YN/A
Revenue 1Y (TTM)13.13%
Revenue growth 3Y5.99%
Revenue growth 5Y-1.26%
Sales Q2Q%13.34%
Revenue Next Year12.62%
Revenue Next 2Y8.18%
Revenue Next 3Y6.05%
Revenue Next 5YN/A
EBIT growth 1Y14.29%
EBIT growth 3Y15.23%
EBIT growth 5Y-3.18%
EBIT Next Year111.06%
EBIT Next 3Y31.27%
EBIT Next 5YN/A
FCF growth 1Y-235.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.63%
OCF growth 3Y11.71%
OCF growth 5Y-2.33%