TANGER INC (SKT) Stock Fundamental Analysis
NYSE:SKT - New York Stock Exchange, Inc. - US8754651060 - REIT - Currency: USD
Taking everything into account, SKT scores 4 out of 10 in our fundamental rating. SKT was compared to 130 industry peers in the Diversified REITs industry. SKT has an excellent profitability rating, but 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
SKT had positive earnings in the past year.
In the past year SKT had a positive cash flow from operations.
Of the past 5 years SKT 4 years were profitable.
In the past 5 years SKT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SKT (3.81%) is better than 86.92% of its industry peers.
With an excellent Return On Equity value of 14.91%, SKT belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
SKT's Return On Invested Capital of 5.23% is amongst the best of the industry. SKT outperforms 93.08% 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 3.16%.
The last Return On Invested Capital (5.23%) for SKT is above the 3 year average (4.98%), which is a sign of increasing profitability.
| 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
SKT has a Profit Margin of 17.56%. This is in the better half of the industry: SKT outperforms 70.00% of its industry peers.
SKT's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 28.52%, SKT is doing good in the industry, outperforming 62.31% of the companies in the same industry.
In the last couple of years the Operating Margin of SKT has remained more or less at the same level.
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
The number of shares outstanding for SKT has been increased compared to 5 years ago.
The debt/assets ratio for SKT has been reduced compared to a year ago.
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 better Altman-Z score (1.28) than 85.38% 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 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.71
WACC7.37%
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.
SKT's Current ratio of 0.79 is on the low side compared to the rest of the industry. SKT is outperformed by 61.54% of its industry peers.
SKT has a Quick 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.
SKT has a Quick ratio (0.79) which is comparable to the rest of the industry.
| 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%.
SKT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.70% yearly.
SKT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.39%.
SKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.92% yearly.
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.
SKT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y4.44%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.58%
Revenue Next 2Y5.37%
Revenue Next 3YN/A
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
With a Price/Earnings ratio of 36.16, SKT can be considered very expensive at the moment.
SKT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.48, SKT is valued a bit more expensive.
SKT is valuated quite expensively with a Price/Forward Earnings ratio of 31.30.
75.38% of the companies in the same industry are more expensive than SKT, based on the Price/Forward Earnings ratio.
SKT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.16 | ||
| Fwd PE | 31.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKT is valued a bit more expensive than 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.44 |
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)8.14
PEG (5Y)4.16
EPS Next 2Y7.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.66%, SKT has a reasonable but not impressive dividend return.
SKT's Dividend Yield is slightly below the industry average, which is at 6.44.
SKT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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
130.06% of the earnings are spent on dividend by SKT. This is not a sustainable payout ratio.
DP130.06%
EPS Next 2Y7.49%
EPS Next 3YN/A
31.82
+0.11 (+0.35%)
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 Cap3.60B
Analysts77.14
Price Target36.21 (13.8%)
Short Float %5.7%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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)-2.07%
PT rev (3m)-8.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-2.41%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.16 | ||
| Fwd PE | 31.3 | ||
| P/S | 6.69 | ||
| P/FCF | N/A | ||
| P/OCF | 13.29 | ||
| P/B | 5.68 | ||
| P/tB | 5.68 | ||
| EV/EBITDA | 17.44 |
EPS(TTM)0.88
EY2.77%
EPS(NY)1.02
Fwd EY3.2%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)2.39
OCFY7.53%
SpS4.75
BVpS5.6
TBVpS5.6
PEG (NY)8.14
PEG (5Y)4.16
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 | 1.28 |
F-Score7
WACC7.37%
ROIC/WACC0.71
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 Year6.58%
Revenue Next 2Y5.37%
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%