TANGER INC (SKT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKT - US8754651060 - REIT
33.58 USD
-0.02 (-0.06%)
33.58 USD
0 (0%)
SKT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 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
In the past year SKT was profitable.
In the past year SKT had a positive cash flow from operations.
SKT had positive earnings in 4 of the past 5 years.
In the past 5 years SKT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SKT (4.06%) is better than 88.28% of its industry peers.
SKT has a better Return On Equity (15.20%) than 95.31% of its industry peers.
SKT's Return On Invested Capital of 5.37% is amongst the best of the industry. SKT outperforms 96.09% 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 3.06%.
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
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.
In the last couple of years the Profit Margin of SKT has remained more or less at the same level.
SKT has a Operating Margin of 29.59%. This is in the better half of the industry: SKT outperforms 60.94% of its industry peers.
SKT's Operating Margin has been stable in the last couple of years.
SKT has a Gross Margin (69.49%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SKT has remained more or less at the same level.
| 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
Compared to 5 years ago, SKT has more shares outstanding
Compared to 1 year ago, SKT has an improved debt to assets ratio.
2.2 Solvency
SKT has an Altman-Z score of 1.30. This is a bad value and indicates that SKT is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.30, SKT belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
A Debt/Equity ratio of 2.29 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 2.29, SKT is doing worse than 72.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.75
WACC7.11%
2.3 Liquidity
A Current Ratio of 0.74 indicates that SKT may have some problems paying its short term obligations.
SKT's Current ratio of 0.74 is on the low side compared to the rest of the industry. SKT is outperformed by 67.19% of its industry peers.
A Quick Ratio of 0.74 indicates that SKT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, SKT is doing worse than 64.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.49% over the past 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 9.59% 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)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.
The Revenue is expected to grow by 5.99% on average over the next years.
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
SKT is valuated quite expensively with a Price/Earnings ratio of 34.62.
Compared to the rest of the industry, the Price/Earnings ratio of SKT indicates a somewhat cheap valuation: SKT is cheaper than 65.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, SKT is valued a bit more expensive.
A Price/Forward Earnings ratio of 31.97 indicates a quite expensive valuation of SKT.
SKT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SKT is cheaper than 75.78% of the companies in the same industry.
SKT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.62 | ||
| Fwd PE | 31.97 |
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 72.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.29 |
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)10.5
PEG (5Y)3.98
EPS Next 2Y9.25%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
SKT has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
SKT's Dividend Yield is slightly below the industry average, which is at 6.59.
SKT's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
The dividend of SKT decreases each year by -5.24%.
SKT has been paying a dividend for at least 10 years, so it has 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 120.63% of its income as dividend. This is not a sustainable payout ratio.
DP120.63%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
33.58
-0.02 (-0.06%)
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 Change0.5%
Ins Owners2.31%
Ins Owner Change-0.51%
Market Cap3.87B
Revenue(TTM)562.00M
Net Income(TTM)106.92M
Analysts77.5
Price Target37.18 (10.72%)
Short Float %4.58%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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)2.69%
PT rev (3m)5.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)35.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.88%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.62 | ||
| Fwd PE | 31.97 | ||
| P/S | 6.76 | ||
| P/FCF | N/A | ||
| P/OCF | 13.13 | ||
| P/B | 5.4 | ||
| P/tB | 5.4 | ||
| EV/EBITDA | 17.29 |
EPS(TTM)0.97
EY2.89%
EPS(NY)1.05
Fwd EY3.13%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)2.56
OCFY7.61%
SpS4.97
BVpS6.22
TBVpS6.22
PEG (NY)10.5
PEG (5Y)3.98
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 | 1.3 |
F-Score4
WACC7.11%
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%.