TANGER INC (SKT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKT - US8754651060 - REIT
32.09 USD
-0.17 (-0.53%)
32.09 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SKT. SKT was compared to 128 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 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.
SKT had a positive operating cash flow in the past year.
SKT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SKT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.06%, SKT belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
SKT has a Return On Equity of 15.20%. This is amongst the best in the industry. SKT outperforms 92.19% of its industry peers.
With an excellent Return On Invested Capital value of 5.37%, SKT belongs to the best of the industry, outperforming 96.09% of the companies in the same industry.
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 3.05%.
The 3 year average ROIC (4.98%) for SKT is below the current ROIC(5.37%), indicating increased profibility in the last year.
| 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 66.41% 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.
In the last couple of years the Operating Margin of SKT has remained more or less at the same level.
SKT has a Gross Margin (69.49%) which is in line with its industry peers.
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
SKT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
SKT has an Altman-Z score of 1.26. This is a bad value and indicates that SKT is not financially healthy and even has some risk of bankruptcy.
SKT has a Altman-Z score of 1.26. This is amongst the best in the industry. SKT outperforms 85.16% of its industry peers.
A Debt/Equity ratio of 2.29 is on the high side and indicates that SKT has dependencies on debt financing.
With a Debt to Equity ratio value of 2.29, SKT is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.75
WACC7.17%
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 63.28% 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 in the lower half of the industry: SKT underperforms 60.94% 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%.
The Revenue has been growing slightly by 1.92% on average over the past years.
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
Based on estimates for the next years, SKT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.48% on average per year.
The Revenue is expected to grow by 6.23% on average over the next years.
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
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
The Price/Earnings ratio is 33.08, which means the current valuation is very expensive for SKT.
Compared to the rest of the industry, the Price/Earnings ratio of SKT indicates a somewhat cheap valuation: SKT is cheaper than 60.16% of the companies listed in the same industry.
SKT is valuated rather expensively when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
SKT is valuated rather expensively with a Price/Forward Earnings ratio of 22.61.
Based on the Price/Forward Earnings ratio, SKT is valued cheaper than 89.84% 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 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 22.61 |
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 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SKT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.45
PEG (5Y)3.8
EPS Next 2Y27%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
SKT has a Yearly Dividend Yield of 3.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.59, SKT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, SKT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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%
32.09
-0.17 (-0.53%)
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 Cap3.69B
Revenue(TTM)562.00M
Net Income(TTM)106.92M
Analysts75
Price Target37.46 (16.73%)
Short Float %3.57%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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)2.59%
PT rev (3m)5.84%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)3.95%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 22.61 | ||
| P/S | 6.57 | ||
| P/FCF | N/A | ||
| P/OCF | 12.76 | ||
| P/B | 5.25 | ||
| P/tB | 5.25 | ||
| EV/EBITDA | 16.94 |
EPS(TTM)0.97
EY3.02%
EPS(NY)1.42
Fwd EY4.42%
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)2.51
OCFY7.83%
SpS4.88
BVpS6.11
TBVpS6.11
PEG (NY)7.45
PEG (5Y)3.8
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 | 1.26 |
F-Score4
WACC7.17%
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 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.
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 4.44% 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%.