TANGER INC (SKT) Stock Fundamental Analysis
USA - NYSE:SKT - US8754651060 - REIT
33.41 USD
-0.4 (-1.18%)
33.41 USD
0 (0%)
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 has a great profitability rating, there are quite some 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
SKT had positive earnings in the past year.
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 has a better Return On Assets (4.07%) than 86.92% of its industry peers.
SKT has a better Return On Equity (15.70%) than 94.62% of its industry peers.
SKT's Return On Invested Capital of 5.53% is amongst the best of the industry. SKT outperforms 96.15% 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(5.53%), 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
The Profit Margin of SKT (18.14%) is better than 69.23% 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 60.77% 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.
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 | 29.06% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SKT is destroying value.
SKT has more shares outstanding than it did 1 year ago.
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 1.37, we must say that SKT is in the distress zone and has some risk of bankruptcy.
SKT's Altman-Z score of 1.37 is amongst the best of 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 | 1.37 |
ROIC/WACC0.77
WACC7.2%
2.3 Liquidity
A Current Ratio of 0.78 indicates that SKT may have some problems paying its short term obligations.
With a Current ratio value of 0.78, SKT perfoms like the industry average, outperforming 41.54% of the companies in the same industry.
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 42.31% of the companies in the same 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%.
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 10.60%.
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)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
The Earnings Per Share is expected to grow by 7.59% 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 6.02% on average per year.
EPS Next Y6.36%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue Next Year8.34%
Revenue Next 2Y6.45%
Revenue Next 3Y6.02%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 36.71, the valuation of SKT can be described as expensive.
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 27.38.
SKT is valuated quite expensively with a Price/Forward Earnings ratio of 31.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKT indicates a somewhat cheap valuation: SKT is cheaper than 74.62% of the companies listed in the same industry.
SKT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.71 | ||
| Fwd PE | 31.81 |
4.2 Price Multiples
73.85% 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 | 17.41 |
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.
SKT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.78
PEG (5Y)4.22
EPS Next 2Y9.25%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.46%, SKT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.58, SKT is paying slightly less dividend.
SKT's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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
SKT pays out 126.26% of its income as dividend. This is not a sustainable payout ratio.
DP126.26%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
33.41
-0.4 (-1.18%)
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 Change2.65%
Ins Owners2.32%
Ins Owner Change-0.48%
Market Cap3.78B
Analysts77.5
Price Target35.9 (7.45%)
Short Float %4.29%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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)2.33%
PT rev (3m)-0.85%
EPS NQ rev (1m)25.18%
EPS NQ rev (3m)28.97%
EPS NY rev (1m)0%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.71 | ||
| Fwd PE | 31.81 | ||
| P/S | 6.88 | ||
| P/FCF | N/A | ||
| P/OCF | 13.49 | ||
| P/B | 5.95 | ||
| P/tB | 5.95 | ||
| EV/EBITDA | 17.41 |
EPS(TTM)0.91
EY2.72%
EPS(NY)1.05
Fwd EY3.14%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)2.48
OCFY7.41%
SpS4.86
BVpS5.61
TBVpS5.61
PEG (NY)5.78
PEG (5Y)4.22
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 | 1.37 |
F-Score6
WACC7.2%
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)0%
EPS 3Y132.52%
EPS 5Y8.7%
EPS Q2Q%13.04%
EPS Next Y6.36%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue 1Y (TTM)10.6%
Revenue growth 3Y7.24%
Revenue growth 5Y1.92%
Sales Q2Q%9.1%
Revenue Next Year8.34%
Revenue Next 2Y6.45%
Revenue Next 3Y6.02%
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%