TANGER INC (SKT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKT - US8754651060 - REIT
33.99 USD
-0.29 (-0.85%)
33.99 USD
0 (0%)
Overall SKT gets a fundamental rating of 4 out of 10. We evaluated SKT against 128 industry peers in the Diversified REITs industry. SKT scores excellent on profitability, but there are concerns on its financial health. SKT is valied quite expensively at the moment, while it does show a decent growth rate.
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
SKT has a Return On Assets of 4.06%. This is amongst the best in the industry. SKT outperforms 84.38% of its industry peers.
SKT has a Return On Equity of 15.20%. This is amongst the best in the industry. SKT outperforms 92.19% 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.
SKT had an Average Return On Invested Capital over the past 3 years of 4.98%. This is in line with the industry average of 3.05%.
The 3 year average ROIC (4.98%) for SKT is below the current ROIC(5.37%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 19.03%, SKT is in the better half of the industry, outperforming 66.41% of the companies in the same industry.
In the last couple of years the Profit Margin of SKT has remained more or less at the same level.
SKT's Operating Margin of 29.59% is fine compared to the rest of the industry. SKT outperforms 60.94% of its industry peers.
SKT's Operating Margin has been stable in the last couple of years.
The Gross Margin of SKT (69.49%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SKT has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SKT is destroying value.
SKT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SKT has more shares outstanding
The debt/assets ratio for SKT has been reduced compared to a year ago.
2.2 Solvency
SKT has an Altman-Z score of 1.34. This is a bad value and indicates that SKT is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.34, SKT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
SKT has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SKT (2.29) is worse than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.74
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.74 indicates that SKT may have some problems paying its short term obligations.
SKT has a Current ratio of 0.74. This is in the lower half of the industry: SKT underperforms 63.28% of its industry peers.
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.
SKT has a worse Quick ratio (0.74) than 60.94% of its industry peers.
| 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.
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 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 quite strong growth in Earnings Per Share. The EPS will grow by 9.48% on average per year.
The Revenue is expected to grow by 6.23% on average over the next years.
EPS Next Y4.44%
EPS Next 2Y27%
EPS Next 3Y9.48%
EPS Next 5YN/A
Revenue Next Year9.19%
Revenue Next 2Y6.88%
Revenue Next 3Y6.23%
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
With a Price/Earnings ratio of 35.04, SKT can be considered very expensive at the moment.
SKT's Price/Earnings ratio is in line with the industry average.
SKT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.57.
A Price/Forward Earnings ratio of 23.95 indicates a rather expensive valuation of SKT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKT indicates a rather cheap valuation: SKT is cheaper than 85.94% of the companies listed in the same industry.
SKT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 23.95 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than SKT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.75 |
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)7.89
PEG (5Y)4.03
EPS Next 2Y27%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
SKT has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.43, SKT is paying slightly less dividend.
SKT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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
120.63% of the earnings are spent on dividend by SKT. This is not a sustainable payout ratio.
DP120.63%
EPS Next 2Y27%
EPS Next 3Y9.48%
33.99
-0.29 (-0.85%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.31%
Inst Owner Change0.5%
Ins Owners2.26%
Ins Owner Change-0.65%
Market Cap3.91B
Revenue(TTM)562.00M
Net Income(TTM)106.92M
Analysts75
Price Target37.46 (10.21%)
Short Float %3.59%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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)2.59%
PT rev (3m)4.34%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)3.95%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 23.95 | ||
| P/S | 6.96 | ||
| P/FCF | N/A | ||
| P/OCF | 13.52 | ||
| P/B | 5.56 | ||
| P/tB | 5.56 | ||
| EV/EBITDA | 17.75 |
EPS(TTM)0.97
EY2.85%
EPS(NY)1.42
Fwd EY4.18%
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)2.51
OCFY7.4%
SpS4.88
BVpS6.11
TBVpS6.11
PEG (NY)7.89
PEG (5Y)4.03
Graham Number11.55
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 | 1.34 |
F-Score4
WACC7.23%
ROIC/WACC0.74
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 Y4.44%
EPS Next 2Y27%
EPS Next 3Y9.48%
EPS Next 5YN/A
Revenue 1Y (TTM)9.59%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.18%
Revenue Next Year9.19%
Revenue Next 2Y6.88%
Revenue Next 3Y6.23%
Revenue Next 5YN/A
EBIT growth 1Y14.84%
EBIT growth 3Y11.06%
EBIT growth 5Y0.97%
EBIT Next Year112.97%
EBIT Next 3Y32.46%
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 4.44% 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%.