TANGER INC (SKT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKT - US8754651060 - REIT
33.19 USD
-0.29 (-0.87%)
33.19 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. 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
SKT had positive earnings in the past year.
SKT had a positive operating cash flow in the past year.
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's Return On Equity of 15.20% is amongst the best of the industry. SKT outperforms 95.31% of its industry peers.
SKT has a Return On Invested Capital of 5.37%. This is amongst the best in 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
SKT has a better Profit Margin (19.03%) than 70.31% of its industry peers.
SKT's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 29.59%, SKT is doing good in the industry, outperforming 60.94% of the companies in the same industry.
SKT's Operating Margin has been stable in the last couple of years.
SKT has a Gross Margin of 69.49%. This is comparable to the rest of the industry: SKT outperforms 57.03% of 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
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.
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 1.28, we must say that SKT is in the distress zone and has some risk of bankruptcy.
SKT has a Altman-Z score of 1.28. This is amongst the best in the industry. SKT outperforms 84.38% of its industry peers.
SKT has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
SKT has a worse Debt to Equity ratio (2.29) than 72.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.75
WACC7.13%
2.3 Liquidity
A Current Ratio of 0.74 indicates that SKT may have some problems paying its short term obligations.
With a Current ratio value of 0.74, SKT is not doing good in the industry: 67.19% of the companies in the same industry are doing better.
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.
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.
SKT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.70% yearly.
Looking at the last year, SKT shows a quite strong growth in Revenue. The Revenue has grown by 9.59% in the last year.
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
Based on estimates for the next years, SKT will show a small growth in Earnings Per Share. The EPS will grow by 7.59% on average per year.
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.
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
A Price/Earnings ratio of 34.22 indicates a quite expensive valuation of SKT.
Based on the Price/Earnings ratio, SKT is valued a bit cheaper than the industry average as 64.84% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.65. SKT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 31.60 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, SKT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.22 | ||
| Fwd PE | 31.6 |
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 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.14 |
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)10.38
PEG (5Y)3.94
EPS Next 2Y9.25%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
SKT has a Yearly Dividend Yield of 3.56%. 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 2.41, SKT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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
120.63% of the earnings are spent on dividend by SKT. This is not a sustainable payout ratio.
DP120.63%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
33.19
-0.29 (-0.87%)
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 Cap3.76B
Revenue(TTM)562.00M
Net Income(TTM)106.92M
Analysts77.5
Price Target37.18 (12.02%)
Short Float %4.58%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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 | 34.22 | ||
| Fwd PE | 31.6 | ||
| P/S | 6.68 | ||
| P/FCF | N/A | ||
| P/OCF | 12.98 | ||
| P/B | 5.34 | ||
| P/tB | 5.34 | ||
| EV/EBITDA | 17.14 |
EPS(TTM)0.97
EY2.92%
EPS(NY)1.05
Fwd EY3.16%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)2.56
OCFY7.7%
SpS4.97
BVpS6.22
TBVpS6.22
PEG (NY)10.38
PEG (5Y)3.94
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 | 1.28 |
F-Score4
WACC7.13%
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%.