TANGER INC (SKT) Stock Fundamental Analysis
USA - NYSE:SKT - US8754651060 - REIT
32.56 USD
+0.18 (+0.56%)
32.56 USD
0 (0%)
Taking everything into account, SKT scores 4 out of 10 in our fundamental rating. SKT was compared to 127 industry peers in the Diversified REITs industry. While SKT has a great profitability rating, there are quite some 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
In the past year SKT was profitable.
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
The Return On Assets of SKT (4.07%) is better than 86.61% of its industry peers.
Looking at the Return On Equity, with a value of 15.70%, SKT belongs to the top of the industry, outperforming 94.49% of the companies in the same industry.
SKT's Return On Invested Capital of 5.53% is amongst the best of the industry. SKT outperforms 96.06% of its industry peers.
SKT had an Average Return On Invested Capital over the past 3 years of 4.98%. This is in line with the industry average of 3.04%.
The last Return On Invested Capital (5.53%) for SKT is above the 3 year average (4.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 15.7% | ||
| ROIC | 5.53% |
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 18.14%, SKT is in the better half of the industry, outperforming 68.50% of the companies in the same industry.
SKT's Profit Margin has been stable in the last couple of years.
SKT has a Operating Margin of 29.06%. This is in the better half of the industry: SKT outperforms 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 69.46%, 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 | 29.06% | ||
| PM (TTM) | 18.14% | ||
| GM | 69.46% |
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.
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
SKT has an Altman-Z score of 1.33. This is a bad value and indicates that SKT is not financially healthy and even has some risk of bankruptcy.
SKT has a better Altman-Z score (1.33) than 87.40% of its industry peers.
A Debt/Equity ratio of 2.40 is on the high side and indicates that SKT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.40, SKT is doing worse than 77.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.77
WACC7.14%
2.3 Liquidity
A Current Ratio of 0.78 indicates that SKT may have some problems paying its short term obligations.
SKT has a Current ratio (0.78) which is in line with its industry peers.
A Quick Ratio of 0.78 indicates that SKT may have some problems paying its short term obligations.
The Quick ratio of SKT (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
SKT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
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 10.60% in the past year. This is quite good.
Measured over the past years, SKT shows a small growth in Revenue. The Revenue has been growing by 1.92% on average per year.
EPS 1Y (TTM)0%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%13.04%
Revenue 1Y (TTM)10.6%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.1%
3.2 Future
SKT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.59% yearly.
SKT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.99% yearly.
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
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
The Price/Earnings ratio is 35.78, which means the current valuation is very expensive for SKT.
The rest of the industry has a similar Price/Earnings ratio as SKT.
The average S&P500 Price/Earnings ratio is at 26.10. SKT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 31.00 indicates a quite expensive valuation of SKT.
74.80% of the companies in the same industry are more expensive than SKT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, SKT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.78 | ||
| Fwd PE | 31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SKT indicates a slightly more expensive valuation: SKT is more expensive than 70.08% of the companies listed in the same industry.
| 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.
The decent profitability rating of SKT may justify a higher PE ratio.
PEG (NY)10.86
PEG (5Y)4.11
EPS Next 2Y9.25%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
SKT has a Yearly Dividend Yield of 3.61%.
SKT's Dividend Yield is slightly below the industry average, which is at 6.35.
Compared to an average S&P500 Dividend Yield of 2.35, SKT pays a better dividend.
| 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
126.26% of the earnings are spent on dividend by SKT. This is not a sustainable payout ratio.
DP126.26%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
32.56
+0.18 (+0.56%)
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 Change0.03%
Ins Owners2.31%
Ins Owner Change-0.6%
Market Cap3.68B
Revenue(TTM)549.79M
Net Income(TTM)99.74M
Analysts77.5
Price Target36.52 (12.16%)
Short Float %3.43%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.09
Dividend Growth(5Y)-5.24%
DP126.26%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.72%
Min EPS beat(2)-5.7%
Max EPS beat(2)13.15%
EPS beat(4)3
Avg EPS beat(4)7.26%
Min EPS beat(4)-5.7%
Max EPS beat(4)16.19%
EPS beat(8)7
Avg EPS beat(8)11.25%
EPS beat(12)10
Avg EPS beat(12)20.7%
EPS beat(16)12
Avg EPS beat(16)17.99%
Revenue beat(2)2
Avg Revenue beat(2)5.31%
Min Revenue beat(2)4.96%
Max Revenue beat(2)5.67%
Revenue beat(4)4
Avg Revenue beat(4)5.76%
Min Revenue beat(4)4.63%
Max Revenue beat(4)7.78%
Revenue beat(8)8
Avg Revenue beat(8)4.96%
Revenue beat(12)11
Avg Revenue beat(12)4.25%
Revenue beat(16)15
Avg Revenue beat(16)5.05%
PT rev (1m)0.85%
PT rev (3m)3.4%
EPS NQ rev (1m)3.85%
EPS NQ rev (3m)32.6%
EPS NY rev (1m)-4.93%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.78 | ||
| Fwd PE | 31 | ||
| P/S | 6.7 | ||
| P/FCF | N/A | ||
| P/OCF | 13.15 | ||
| P/B | 5.8 | ||
| P/tB | 5.8 | ||
| EV/EBITDA | 17.03 |
EPS(TTM)0.91
EY2.79%
EPS(NY)1.05
Fwd EY3.23%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)2.48
OCFY7.61%
SpS4.86
BVpS5.61
TBVpS5.61
PEG (NY)10.86
PEG (5Y)4.11
Graham Number10.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 15.7% | ||
| ROCE | 7% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.55% | ||
| ROICexgc | 5.55% | ||
| OM | 29.06% | ||
| PM (TTM) | 18.14% | ||
| GM | 69.46% | ||
| 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-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 226.17% | ||
| Cap/Sales | 59.41% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 92.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.33 |
F-Score6
WACC7.14%
ROIC/WACC0.77
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)0%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%13.04%
EPS Next Y3.3%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue 1Y (TTM)10.6%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.1%
Revenue Next Year8.82%
Revenue Next 2Y6.71%
Revenue Next 3Y5.99%
Revenue Next 5YN/A
EBIT growth 1Y12.56%
EBIT growth 3Y11.06%
EBIT growth 5Y0.97%
EBIT Next Year111.02%
EBIT Next 3Y31.49%
EBIT Next 5YN/A
FCF growth 1Y-148.84%
FCF growth 3Y-23.27%
FCF growth 5Y-14.91%
OCF growth 1Y25.23%
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 1 / 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 126.26%.