TANGER INC (SKT) Stock Fundamental Analysis
NYSE:SKT - US8754651060 - REIT
34.18 USD
+0.18 (+0.53%)
34.18 USD
0 (0%)
Overall SKT gets a fundamental rating of 4 out of 10. We evaluated SKT against 129 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.
Of the past 5 years SKT 4 years were profitable.
SKT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.07%, SKT belongs to the top of the industry, outperforming 86.82% of the companies in the same industry.
SKT has a better Return On Equity (15.70%) than 94.57% of its industry peers.
SKT's Return On Invested Capital of 5.53% is amongst the best of the industry. SKT outperforms 96.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SKT is in line with the industry average of 3.06%.
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
With a decent Profit Margin value of 18.14%, SKT is doing good in the industry, outperforming 68.99% of the companies in the same industry.
SKT's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 29.06%, SKT is in the better half of the industry, outperforming 61.24% 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.
SKT has a Gross Margin (69.46%) which 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 | 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.
SKT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SKT has been reduced compared to a year ago.
2.2 Solvency
SKT has an Altman-Z score of 1.39. This is a bad value and indicates that SKT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SKT (1.39) is better than 88.37% 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.
Looking at the Debt to Equity ratio, with a value of 2.40, SKT is doing worse than 78.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.76
WACC7.28%
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 42.64% 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.
With a Quick ratio value of 0.78, SKT perfoms like the industry average, outperforming 43.41% 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%.
The Earnings Per Share has been growing by 8.70% on average over the past years. This is quite good.
The Revenue has grown by 10.60% in the past year. This is quite good.
The Revenue has been growing slightly by 1.92% on average over the past years.
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.
SKT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.90% yearly.
EPS Next Y6.36%
EPS Next 2Y9.25%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue Next Year8.1%
Revenue Next 2Y6.33%
Revenue Next 3Y5.9%
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 37.56, the valuation of SKT can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SKT.
When comparing the Price/Earnings ratio of SKT to the average of the S&P500 Index (27.17), we can say SKT is valued slightly more expensively.
The Price/Forward Earnings ratio is 32.54, which means the current valuation is very expensive for SKT.
SKT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SKT is cheaper than 74.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.78. SKT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.56 | ||
| Fwd PE | 32.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKT is valued a bit more expensive than the industry average as 75.97% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.63 |
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)5.91
PEG (5Y)4.32
EPS Next 2Y9.25%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.58%, 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.
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 | 3.58% |
5.2 History
The dividend of SKT decreases each year by -5.24%.
SKT has been paying a dividend for at least 10 years, so it has 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%
34.18
+0.18 (+0.53%)
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 Change7.48%
Market Cap3.87B
Analysts78.75
Price Target35.29 (3.25%)
Short Float %4.86%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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)0.78%
PT rev (3m)-7.11%
EPS NQ rev (1m)2%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)1.83%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.56 | ||
| Fwd PE | 32.54 | ||
| P/S | 7.04 | ||
| P/FCF | N/A | ||
| P/OCF | 13.8 | ||
| P/B | 6.09 | ||
| P/tB | 6.09 | ||
| EV/EBITDA | 17.63 |
EPS(TTM)0.91
EY2.66%
EPS(NY)1.05
Fwd EY3.07%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)2.48
OCFY7.25%
SpS4.86
BVpS5.61
TBVpS5.61
PEG (NY)5.91
PEG (5Y)4.32
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 | 1.39 |
F-Score6
WACC7.28%
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 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 Year8.1%
Revenue Next 2Y6.33%
Revenue Next 3Y5.9%
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%