TANGER INC (SKT) Stock Fundamental Analysis
USA - NYSE:SKT - US8754651060 - REIT
34.48 USD
+0.87 (+2.59%)
34.2 USD
-0.28 (-0.81%)
Taking everything into account, SKT scores 4 out of 10 in our fundamental rating. SKT was compared to 128 industry peers in the Diversified REITs industry. SKT has an excellent profitability rating, but there are 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
In the past year SKT was profitable.
In the past year SKT had a positive cash flow from operations.
Of the past 5 years SKT 4 years were profitable.
Each year in the past 5 years SKT had a positive operating cash flow.
1.2 Ratios
SKT has a better Return On Assets (4.07%) than 86.61% of its industry peers.
SKT's Return On Equity of 15.70% is amongst the best of the industry. SKT outperforms 94.49% of its industry peers.
The Return On Invested Capital of SKT (5.53%) is better than 96.06% 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 3.09%.
The last Return On Invested Capital (5.53%) for SKT is above the 3 year average (4.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 15.7% | ||
| ROIC | 5.53% |
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
The Profit Margin of SKT (18.14%) is better than 69.29% of its industry peers.
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 29.06%. This is in the better half of the industry: SKT outperforms 60.63% of its industry peers.
In the last couple of years the Operating Margin of SKT has remained more or less at the same level.
Looking at the Gross Margin, with a value of 69.46%, SKT is in line with its industry, outperforming 56.69% 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 | 29.06% | ||
| PM (TTM) | 18.14% | ||
| GM | 69.46% |
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
Compared to 1 year ago, SKT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that SKT is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.41, SKT belongs to the best of the industry, outperforming 88.98% of the companies in the same industry.
A Debt/Equity ratio of 2.40 is on the high side and indicates that SKT has dependencies on debt financing.
SKT has a Debt to Equity ratio of 2.40. This is in the lower half of the industry: SKT underperforms 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC0.77
WACC7.21%
2.3 Liquidity
A Current Ratio of 0.78 indicates that SKT may have some problems paying its short term obligations.
SKT's Current ratio of 0.78 is in line compared to the rest of the industry. SKT outperforms 40.16% of its industry peers.
A Quick Ratio of 0.78 indicates that SKT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, SKT is in line with its industry, outperforming 40.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.49% over the past year.
The Earnings Per Share has been growing by 8.70% on average over the past years. This is quite good.
Looking at the last year, SKT shows a quite strong growth in Revenue. The Revenue has grown by 13.28% in the last year.
SKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.92% yearly.
EPS 1Y (TTM)11.49%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%27.27%
Revenue 1Y (TTM)13.28%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.18%
3.2 Future
SKT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.59% yearly.
Based on estimates for the next years, SKT will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
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.
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 35.55, the valuation of SKT can be described as expensive.
Based on the Price/Earnings ratio, SKT is valued a bit cheaper than the industry average as 63.78% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.06. SKT is valued slightly more expensive when compared to this.
SKT is valuated quite expensively with a Price/Forward Earnings ratio of 32.83.
Based on the Price/Forward Earnings ratio, SKT is valued a bit cheaper than 73.23% 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 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 32.83 |
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 76.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.81 |
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)10.79
PEG (5Y)4.09
EPS Next 2Y9.25%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.48%, SKT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.31, SKT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.37, SKT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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
126.26% of the earnings are spent on dividend by SKT. This is not a sustainable payout ratio.
DP126.26%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
34.48
+0.87 (+2.59%)
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 Change0.51%
Ins Owners2.31%
Ins Owner Change-0.68%
Market Cap3.90B
Revenue(TTM)526.06M
Net Income(TTM)99.74M
Analysts77.5
Price Target36.52 (5.92%)
Short Float %3.43%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Yearly Dividend1.09
Dividend Growth(5Y)-5.24%
DP126.26%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.72%
Min EPS beat(2)-5.7%
Max EPS beat(2)13.15%
EPS beat(4)3
Avg EPS beat(4)7.26%
Min EPS beat(4)-5.7%
Max EPS beat(4)16.19%
EPS beat(8)7
Avg EPS beat(8)11.25%
EPS beat(12)10
Avg EPS beat(12)20.7%
EPS beat(16)12
Avg EPS beat(16)17.99%
Revenue beat(2)2
Avg Revenue beat(2)5.31%
Min Revenue beat(2)4.96%
Max Revenue beat(2)5.67%
Revenue beat(4)4
Avg Revenue beat(4)5.76%
Min Revenue beat(4)4.63%
Max Revenue beat(4)7.78%
Revenue beat(8)8
Avg Revenue beat(8)4.96%
Revenue beat(12)11
Avg Revenue beat(12)4.25%
Revenue beat(16)15
Avg Revenue beat(16)5.05%
PT rev (1m)0.85%
PT rev (3m)4.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)32.6%
EPS NY rev (1m)-4.93%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 32.83 | ||
| P/S | 7.1 | ||
| P/FCF | N/A | ||
| P/OCF | 13.92 | ||
| P/B | 6.14 | ||
| P/tB | 6.14 | ||
| EV/EBITDA | 17.81 |
EPS(TTM)0.97
EY2.81%
EPS(NY)1.05
Fwd EY3.05%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)2.48
OCFY7.18%
SpS4.86
BVpS5.61
TBVpS5.61
PEG (NY)10.79
PEG (5Y)4.09
Graham Number11.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 15.7% | ||
| ROCE | 7% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.55% | ||
| ROICexgc | 5.55% | ||
| OM | 29.06% | ||
| PM (TTM) | 18.14% | ||
| GM | 69.46% | ||
| 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-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 226.17% | ||
| Cap/Sales | 59.41% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 92.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.41 |
F-Score6
WACC7.21%
ROIC/WACC0.77
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)13.28%
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 1Y12.56%
EBIT growth 3Y11.06%
EBIT growth 5Y0.97%
EBIT Next Year111.02%
EBIT Next 3Y31.49%
EBIT Next 5YN/A
FCF growth 1Y-148.84%
FCF growth 3Y-23.27%
FCF growth 5Y-14.91%
OCF growth 1Y25.23%
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 126.26%.