TANGER INC (SKT) Stock Fundamental Analysis
NYSE:SKT - New York Stock Exchange, Inc. - US8754651060 - REIT - Currency: USD
Overall SKT gets a fundamental rating of 4 out of 10. We evaluated SKT against 130 industry peers in the Diversified REITs industry. While SKT belongs to the best of the industry regarding profitability, there are concerns on its financial health. SKT is quite expensive at the moment. 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.
In the past 5 years SKT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.10%, SKT belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
The Return On Equity of SKT (14.97%) is better than 94.62% of its industry peers.
The Return On Invested Capital of SKT (5.44%) is better than 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKT is in line with the industry average of 3.19%.
The last Return On Invested Capital (5.44%) for SKT is above the 3 year average (4.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 14.97% | ||
| ROIC | 5.44% |
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
The Profit Margin of SKT (18.57%) is better than 74.62% of its industry peers.
In the last couple of years the Profit Margin of SKT has remained more or less at the same level.
Looking at the Operating Margin, with a value of 28.63%, SKT is in the better half of the industry, outperforming 62.31% of the companies in the same industry.
In the last couple of years the Operating Margin of SKT has remained more or less at the same level.
With a Gross Margin value of 69.83%, SKT perfoms like the industry average, outperforming 59.23% 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 | 28.63% | ||
| PM (TTM) | 18.57% | ||
| GM | 69.83% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SKT is destroying value.
SKT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SKT has been increased compared to 5 years ago.
Compared to 1 year ago, SKT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that SKT is in the distress zone and has some risk of bankruptcy.
SKT has a Altman-Z score of 1.37. This is amongst the best in the industry. SKT outperforms 89.23% of its industry peers.
SKT has a debt to FCF ratio of 18.61. This is a negative value and a sign of low solvency as SKT would need 18.61 years to pay back of all of its debts.
SKT's Debt to FCF ratio of 18.61 is fine compared to the rest of the industry. SKT outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 2.18 is on the high side and indicates that SKT has dependencies on debt financing.
SKT has a worse Debt to Equity ratio (2.18) than 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 18.61 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.74
WACC7.33%
2.3 Liquidity
SKT has a Current Ratio of 0.91. This is a bad value and indicates that SKT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.91, SKT is in line with its industry, outperforming 53.08% of the companies in the same industry.
SKT has a Quick Ratio of 0.91. 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 (0.91) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for SKT have decreased by -5.38% in the last year.
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.
The Revenue has grown by 13.31% in the past year. This is quite good.
SKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.92% yearly.
EPS 1Y (TTM)-5.38%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%4.55%
Revenue 1Y (TTM)13.31%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%10.4%
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 8.73% yearly.
SKT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.41% yearly.
EPS Next Y7.89%
EPS Next 2Y8.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.44%
Revenue Next 2Y5.41%
Revenue Next 3YN/A
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 36.42.
SKT's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.64. SKT is valued slightly more expensive when compared to this.
SKT is valuated quite expensively with a Price/Forward Earnings ratio of 33.76.
SKT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SKT is cheaper than 72.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.44. SKT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 33.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKT is valued a bit more expensive than the industry average as 73.85% of the companies are valued more cheaply.
SKT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.42 | ||
| EV/EBITDA | 17.22 |
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.
The decent profitability rating of SKT may justify a higher PE ratio.
PEG (NY)4.62
PEG (5Y)4.19
EPS Next 2Y8.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, SKT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 16.87, SKT is paying slightly less dividend.
SKT's Dividend Yield is a higher than the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
SKT pays out 123.10% of its income as dividend. This is not a sustainable payout ratio.
DP123.1%
EPS Next 2Y8.73%
EPS Next 3YN/A
NYSE:SKT (4/24/2025, 10:35:08 AM)
32.05
+0.19 (+0.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.18%
Inst Owner Change-0.24%
Ins Owners2.22%
Ins Owner Change5.09%
Market Cap3.63B
Analysts77.14
Price Target39.78 (24.12%)
Short Float %3.87%
Short Ratio5.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.09
Dividend Growth(5Y)-5.24%
DP123.1%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.79%
Min EPS beat(2)5.4%
Max EPS beat(2)16.19%
EPS beat(4)4
Avg EPS beat(4)11.41%
Min EPS beat(4)4.22%
Max EPS beat(4)19.85%
EPS beat(8)8
Avg EPS beat(8)27.31%
EPS beat(12)11
Avg EPS beat(12)26.14%
EPS beat(16)12
Avg EPS beat(16)23.46%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)4.63%
Max Revenue beat(2)7.78%
Revenue beat(4)4
Avg Revenue beat(4)4.62%
Min Revenue beat(4)0.9%
Max Revenue beat(4)7.78%
Revenue beat(8)7
Avg Revenue beat(8)4.01%
Revenue beat(12)11
Avg Revenue beat(12)3.69%
Revenue beat(16)15
Avg Revenue beat(16)4.78%
PT rev (1m)1.3%
PT rev (3m)2.63%
EPS NQ rev (1m)6.78%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.75%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)5.16%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 33.76 | ||
| P/S | 6.9 | ||
| P/FCF | 47.42 | ||
| P/OCF | 13.92 | ||
| P/B | 5.56 | ||
| P/tB | 5.56 | ||
| EV/EBITDA | 17.22 |
EPS(TTM)0.88
EY2.75%
EPS(NY)0.95
Fwd EY2.96%
FCF(TTM)0.68
FCFY2.11%
OCF(TTM)2.3
OCFY7.19%
SpS4.65
BVpS5.76
TBVpS5.76
PEG (NY)4.62
PEG (5Y)4.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 14.97% | ||
| ROCE | 6.88% | ||
| ROIC | 5.44% | ||
| ROICexc | 5.56% | ||
| ROICexgc | 5.56% | ||
| OM | 28.63% | ||
| PM (TTM) | 18.57% | ||
| GM | 69.83% | ||
| FCFM | 14.54% |
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%
ROICexcg growth 3Y5.08%
ROICexcg 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-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 18.61 | ||
| Debt/EBITDA | 4.92 | ||
| Cap/Depr | 132.8% | ||
| Cap/Sales | 35.01% | ||
| Interest Coverage | 2.76 | ||
| Cash Conversion | 90.1% | ||
| Profit Quality | 78.32% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.37 |
F-Score7
WACC7.33%
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)-5.38%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%4.55%
EPS Next Y7.89%
EPS Next 2Y8.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.31%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%10.4%
Revenue Next Year6.44%
Revenue Next 2Y5.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.85%
EBIT growth 3Y11.06%
EBIT growth 5Y0.97%
EBIT Next Year106.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y133.4%
FCF growth 3Y-23.27%
FCF growth 5Y-14.91%
OCF growth 1Y13.53%
OCF growth 3Y6.19%
OCF growth 5Y3.4%