TANGER INC (SKT) Stock Fundamental Analysis
NYSE:SKT - New York Stock Exchange, Inc. - US8754651060 - REIT - Currency: USD
SKT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 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. While showing a medium growth rate, SKT is valued expensive at the moment.
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.
Each year in the past 5 years SKT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.81%, SKT belongs to the best of the industry, outperforming 86.82% of the companies in the same industry.
With an excellent Return On Equity value of 14.91%, SKT belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.23%, SKT belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SKT is in line with the industry average of 3.15%.
The 3 year average ROIC (4.98%) for SKT is below the current ROIC(5.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 14.91% | ||
| ROIC | 5.23% |
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 17.56%, SKT is in the better half of the industry, outperforming 69.77% 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.
The Operating Margin of SKT (28.52%) is better than 62.79% of its industry peers.
SKT's Operating Margin has been stable in the last couple of years.
The Gross Margin of SKT (69.32%) is comparable to the rest of the industry.
SKT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.52% | ||
| PM (TTM) | 17.56% | ||
| GM | 69.32% |
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
SKT has more shares outstanding than it did 5 years ago.
SKT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that SKT is in the distress zone and has some risk of bankruptcy.
SKT has a Altman-Z score of 1.27. This is amongst the best in the industry. SKT outperforms 84.50% of its industry peers.
A Debt/Equity ratio of 2.47 is on the high side and indicates that SKT has dependencies on debt financing.
SKT's Debt to Equity ratio of 2.47 is on the low side compared to the rest of the industry. SKT is outperformed by 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.72
WACC7.31%
2.3 Liquidity
SKT has a Current Ratio of 0.79. This is a bad value and indicates that SKT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SKT (0.79) is worse than 61.24% of its industry peers.
A Quick Ratio of 0.79 indicates that SKT may have some problems paying its short term obligations.
SKT's Quick ratio of 0.79 is in line compared to the rest of the industry. SKT outperforms 41.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
SKT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.30%.
The Earnings Per Share has been growing by 8.70% on average over the past years. This is quite good.
The Revenue has grown by 12.39% 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)-3.3%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%0%
Revenue 1Y (TTM)12.39%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.72%
3.2 Future
The Earnings Per Share is expected to grow by 7.49% on average over the next years.
The Revenue is expected to grow by 5.62% on average over the next years.
EPS Next Y4.44%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.07%
Revenue Next 2Y5.62%
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
Based on the Price/Earnings ratio of 35.73, 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.
The average S&P500 Price/Earnings ratio is at 27.30. SKT is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.92, SKT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SKT is valued a bit cheaper than the industry average as 75.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SKT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.73 | ||
| Fwd PE | 30.92 |
4.2 Price Multiples
SKT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SKT is more expensive than 78.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.3 |
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)8.04
PEG (5Y)4.11
EPS Next 2Y7.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SKT has a Yearly Dividend Yield of 3.69%.
Compared to an average industry Dividend Yield of 6.43, SKT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.37, SKT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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 130.06% of its income as dividend. This is not a sustainable payout ratio.
DP130.06%
EPS Next 2Y7.49%
EPS Next 3YN/A
31.44
+0.17 (+0.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.06%
Inst Owner Change-0.02%
Ins Owners2.32%
Ins Owner Change6.21%
Market Cap3.56B
Analysts77.14
Price Target36.21 (15.17%)
Short Float %5.16%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend1.09
Dividend Growth(5Y)-5.24%
DP130.06%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.24%
Min EPS beat(2)-5.7%
Max EPS beat(2)16.19%
EPS beat(4)3
Avg EPS beat(4)8.93%
Min EPS beat(4)-5.7%
Max EPS beat(4)19.85%
EPS beat(8)7
Avg EPS beat(8)14.89%
EPS beat(12)10
Avg EPS beat(12)21.55%
EPS beat(16)12
Avg EPS beat(16)25.61%
Revenue beat(2)2
Avg Revenue beat(2)6.37%
Min Revenue beat(2)4.96%
Max Revenue beat(2)7.78%
Revenue beat(4)4
Avg Revenue beat(4)5.63%
Min Revenue beat(4)4.63%
Max Revenue beat(4)7.78%
Revenue beat(8)8
Avg Revenue beat(8)4.73%
Revenue beat(12)11
Avg Revenue beat(12)3.81%
Revenue beat(16)15
Avg Revenue beat(16)5%
PT rev (1m)-4.7%
PT rev (3m)-8.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5%
EPS NY rev (1m)-2.41%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.73 | ||
| Fwd PE | 30.92 | ||
| P/S | 6.61 | ||
| P/FCF | N/A | ||
| P/OCF | 13.13 | ||
| P/B | 5.61 | ||
| P/tB | 5.61 | ||
| EV/EBITDA | 17.3 |
EPS(TTM)0.88
EY2.8%
EPS(NY)1.02
Fwd EY3.23%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)2.39
OCFY7.62%
SpS4.75
BVpS5.6
TBVpS5.6
PEG (NY)8.04
PEG (5Y)4.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 14.91% | ||
| ROCE | 6.62% | ||
| ROIC | 5.23% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 5.25% | ||
| OM | 28.52% | ||
| PM (TTM) | 17.56% | ||
| GM | 69.32% | ||
| 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%
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 | 2.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 234.42% | ||
| Cap/Sales | 61.86% | ||
| Interest Coverage | 2.7 | ||
| Cash Conversion | 91.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.27 |
F-Score7
WACC7.31%
ROIC/WACC0.72
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)-3.3%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%0%
EPS Next Y4.44%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.39%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.72%
Revenue Next Year7.07%
Revenue Next 2Y5.62%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.25%
EBIT growth 3Y11.06%
EBIT growth 5Y0.97%
EBIT Next Year107.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-152.63%
FCF growth 3Y-23.27%
FCF growth 5Y-14.91%
OCF growth 1Y22.81%
OCF growth 3Y6.19%
OCF growth 5Y3.4%