TANGER INC (SKT)
US8754651060 - REIT
Taking everything into account, SKT scores 4 out of 10 in our fundamental rating. SKT was compared to 126 industry peers in the Diversified REITs industry. SKT scores excellent on profitability, but there are concerns on its financial health. SKT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
SKT had positive earnings in the past year.
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
SKT has a better Return On Assets (4.21%) than 86.18% of its industry peers.
With an excellent Return On Equity value of 17.28%, SKT belongs to the best of the industry, outperforming 94.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.99%, SKT belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SKT is in line with the industry average of 2.95%.
The 3 year average ROIC (4.64%) for SKT is below the current ROIC(4.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 17.28% | ||
| ROIC | 4.99% |
ROA(3y)2.75%
ROA(5y)2.07%
ROE(3y)11.85%
ROE(5y)8.93%
ROIC(3y)4.64%
ROIC(5y)4.55%
1.3 Margins
SKT has a better Profit Margin (21.10%) than 73.98% of its industry peers.
SKT's Profit Margin has improved in the last couple of years.
SKT's Operating Margin of 28.83% is fine compared to the rest of the industry. SKT outperforms 65.85% of its industry peers.
SKT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 68.68%, SKT is in line with its industry, outperforming 52.03% 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 | 28.83% | ||
| PM (TTM) | 21.1% | ||
| GM | 68.68% |
OM growth 3Y8.72%
OM growth 5Y-1.95%
PM growth 3YN/A
PM growth 5Y19.74%
GM growth 3Y1.41%
GM growth 5Y0.01%
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
The number of shares outstanding for SKT has been increased compared to 5 years ago.
Compared to 1 year ago, SKT has an improved debt to assets ratio.
2.2 Solvency
SKT has an Altman-Z score of 1.04. This is a bad value and indicates that SKT is not financially healthy and even has some risk of bankruptcy.
SKT's Altman-Z score of 1.04 is fine compared to the rest of the industry. SKT outperforms 77.24% of its industry peers.
SKT has a Debt/Equity ratio of 2.54. This is a high value indicating a heavy dependency on external financing.
SKT's Debt to Equity ratio of 2.54 is on the low side compared to the rest of the industry. SKT is outperformed by 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.69
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.59 indicates that SKT may have some problems paying its short term obligations.
With a Current ratio value of 0.59, SKT is not doing good in the industry: 78.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.59 indicates that SKT may have some problems paying its short term obligations.
SKT's Quick ratio of 0.59 is on the low side compared to the rest of the industry. SKT is outperformed by 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.78% over the past year.
Measured over the past years, SKT shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.84% on average per year.
SKT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.90%.
Measured over the past years, SKT shows a decrease in Revenue. The Revenue has been decreasing by -1.26% on average per year.
EPS 1Y (TTM)20.78%
EPS 3Y145.31%
EPS 5Y-0.84%
EPS growth Q2Q29.41%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y5.99%
Revenue growth 5Y-1.26%
Revenue growth Q2Q9.42%
3.2 Future
The Earnings Per Share is expected to decrease by -3.50% on average over the next years.
Based on estimates for the next years, SKT will show a small growth in Revenue. The Revenue will grow by 7.35% on average per year.
EPS Next Y-16.65%
EPS Next 2Y-3.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.25%
Revenue Next 2Y7.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
SKT is valuated quite expensively with a Price/Earnings ratio of 28.47.
Based on the Price/Earnings ratio, SKT is valued a bit cheaper than 65.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of SKT to the average of the S&P500 Index (24.83), we can say SKT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 34.16, the valuation of SKT can be described as expensive.
Based on the Price/Forward Earnings ratio, SKT is valued a bit cheaper than the industry average as 71.54% of the companies are valued more expensively.
SKT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 34.16 |
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 75.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.76 |
4.3 Compensation for Growth
SKT has a very decent profitability rating, which may justify a higher PE ratio.
SKT's earnings are expected to decrease with -3.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, SKT is a good candidate for dividend investing.
SKT's Dividend Yield is slightly below the industry average, which is at 5.96.
SKT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
The dividend of SKT decreases each year by -6.91%.
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)-6.91%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SKT pays out 105.93% of its income as dividend. This is not a sustainable payout ratio.
SKT's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP105.93%
EPS Next 2Y-3.5%
EPS Next 3YN/A
TANGER INC
NYSE:SKT (4/17/2024, 7:25:19 PM)
After market: 26.48 0 (0%)26.48
-0.08 (-0.3%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 34.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 17.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.83% | ||
| PM (TTM) | 21.1% | ||
| GM | 68.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.78%
EPS 3Y145.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.9%
Revenue growth 3Y5.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y