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. While SKT belongs to the best of the industry regarding profitability, 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.
SKT had a positive operating cash flow in the past year.
SKT had positive earnings in 4 of the past 5 years.
SKT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SKT's Return On Assets of 4.07% is amongst the best of the industry. SKT outperforms 86.92% of its industry peers.
SKT has a better Return On Equity (15.70%) than 94.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.53%, SKT belongs to the top of the industry, outperforming 95.38% 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 3.08%.
The 3 year average ROIC (4.98%) for SKT is below the current ROIC(5.53%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 18.14%, SKT is doing good in the industry, outperforming 69.23% of the companies in the same industry.
SKT's Profit Margin has been stable in the last couple of years.
SKT has a better Operating Margin (29.06%) than 60.77% of its industry peers.
In the last couple of years the Operating Margin of SKT has remained more or less at the same level.
SKT has a Gross Margin (69.46%) which is in line with its industry peers.
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
SKT has a better debt/assets ratio than last year.
2.2 Solvency
SKT has an Altman-Z score of 1.33. This is a bad value and indicates that SKT is not financially healthy and even has some risk of bankruptcy.
SKT has a Altman-Z score of 1.33. This is amongst the best in the industry. SKT outperforms 88.46% of its industry peers.
A Debt/Equity ratio of 2.40 is on the high side and indicates that SKT has dependencies on debt financing.
The Debt to Equity ratio of SKT (2.40) is worse than 77.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.76
WACC7.27%
2.3 Liquidity
SKT has a Current Ratio of 0.78. 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 worse Current ratio (0.78) than 60.00% of its industry peers.
SKT has a Quick Ratio of 0.78. 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 (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
SKT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been growing by 8.70% on average over the past years. This is quite good.
SKT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.60%.
SKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.92% yearly.
EPS 1Y (TTM)0%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%13.04%
Revenue 1Y (TTM)10.6%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.1%
3.2 Future
SKT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.49% yearly.
SKT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y4.44%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.1%
Revenue Next 2Y5.77%
Revenue Next 3Y6%
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 35.53, the valuation of SKT can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SKT.
Compared to an average S&P500 Price/Earnings ratio of 26.87, SKT is valued a bit more expensive.
A Price/Forward Earnings ratio of 31.80 indicates a quite expensive valuation of SKT.
Based on the Price/Forward Earnings ratio, SKT is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
SKT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.53 | ||
| Fwd PE | 31.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKT is valued a bit more expensive than the industry average as 72.31% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SKT may justify a higher PE ratio.
PEG (NY)8
PEG (5Y)4.09
EPS Next 2Y7.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, SKT has a reasonable but not impressive dividend return.
SKT's Dividend Yield is slightly below the industry average, which is at 6.35.
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 | 3.61% |
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 2Y7.49%
EPS Next 3YN/A
32.33
-0.14 (-0.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.27%
Inst Owner Change0.8%
Ins Owners2.32%
Ins Owner Change6.21%
Market Cap3.66B
Analysts78.75
Price Target35.09 (8.54%)
Short Float %5.69%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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)-3.1%
PT rev (3m)-7.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.19%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.53 | ||
| Fwd PE | 31.8 | ||
| P/S | 6.65 | ||
| P/FCF | N/A | ||
| P/OCF | 13.05 | ||
| P/B | 5.76 | ||
| P/tB | 5.76 | ||
| EV/EBITDA | 17.06 |
EPS(TTM)0.91
EY2.81%
EPS(NY)1.02
Fwd EY3.14%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)2.48
OCFY7.66%
SpS4.86
BVpS5.61
TBVpS5.61
PEG (NY)8
PEG (5Y)4.09
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%
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-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 | 1.33 |
F-Score6
WACC7.27%
ROIC/WACC0.76
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)0%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%13.04%
EPS Next Y4.44%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.6%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.1%
Revenue Next Year7.1%
Revenue Next 2Y5.77%
Revenue Next 3Y6%
Revenue Next 5YN/A
EBIT growth 1Y12.56%
EBIT growth 3Y11.06%
EBIT growth 5Y0.97%
EBIT Next Year109.5%
EBIT Next 3Y31.93%
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%