TANGER INC (SKT)
US8754651060 - REIT
SKT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 126 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 valied quite expensively at the moment, while 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.
In the past 5 years SKT always reported a positive cash flow from operatings.
1.2 Ratios
SKT's Return On Assets of 4.25% is amongst the best of the industry. SKT outperforms 89.52% of its industry peers.
SKT's Return On Equity of 17.60% is amongst the best of the industry. SKT outperforms 95.16% of its industry peers.
SKT has a better Return On Invested Capital (5.28%) than 95.16% 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 3.06%.
The last Return On Invested Capital (5.28%) for SKT is above the 3 year average (4.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 17.6% | ||
| ROIC | 5.28% |
ROA(3y)2.75%
ROA(5y)2.07%
ROE(3y)11.85%
ROE(5y)8.93%
ROIC(3y)4.64%
ROIC(5y)4.55%
1.3 Margins
With a decent Profit Margin value of 19.60%, SKT is doing good in the industry, outperforming 75.81% of the companies in the same industry.
SKT's Profit Margin has improved in the last couple of years.
The Operating Margin of SKT (28.55%) is better than 61.29% of its industry peers.
SKT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 69.49%, SKT perfoms like the industry average, outperforming 55.65% of the companies in the same industry.
SKT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.55% | ||
| PM (TTM) | 19.6% | ||
| GM | 69.49% |
OM growth 3Y8.72%
OM growth 5Y-1.95%
PM growth 3YN/A
PM growth 5Y19.74%
GM growth 3Y1.41%
GM growth 5Y0.01%
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.
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
Based on the Altman-Z score of 1.29, we must say that SKT is in the distress zone and has some risk of bankruptcy.
SKT's Altman-Z score of 1.29 is amongst the best of the industry. SKT outperforms 82.26% of its industry peers.
SKT has a Debt/Equity ratio of 2.64. This is a high value indicating a heavy dependency on external financing.
SKT has a worse Debt to Equity ratio (2.64) than 81.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.79
WACC6.65%
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 on the low side compared to the rest of the industry. SKT is outperformed by 70.16% 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 worse Quick ratio (0.78) than 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
SKT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
The Earnings Per Share has been decreasing by -0.84% on average over the past years.
Looking at the last year, SKT shows a quite strong growth in Revenue. The Revenue has grown by 11.11% in the last year.
Measured over the past years, SKT shows a decrease in Revenue. The Revenue has been decreasing by -1.26% on average per year.
EPS 1Y (TTM)8.33%
EPS 3Y145.31%
EPS 5Y-0.84%
EPS Q2Q%0%
Revenue 1Y (TTM)11.11%
Revenue growth 3Y5.99%
Revenue growth 5Y-1.26%
Sales Q2Q%16.55%
3.2 Future
SKT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.10% yearly.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y-11.67%
EPS Next 2Y-1.5%
EPS Next 3Y2.1%
EPS Next 5YN/A
Revenue Next Year12.49%
Revenue Next 2Y7.95%
Revenue Next 3Y6.01%
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 accelerating.
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
Based on the Price/Earnings ratio of 34.98, the valuation of SKT can be described as expensive.
SKT's Price/Earnings ratio is a bit cheaper when compared to the industry. SKT is cheaper than 63.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.52. SKT is around the same levels.
SKT is valuated quite expensively with a Price/Forward Earnings ratio of 35.28.
Based on the Price/Forward Earnings ratio, SKT is valued a bit cheaper than 75.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.99. SKT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 35.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKT is valued a bit more expensive than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.43 |
4.3 Compensation for Growth
SKT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.5%
EPS Next 3Y2.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.49%, SKT has a reasonable but not impressive dividend return.
SKT's Dividend Yield is slightly below the industry average, which is at 5.49.
SKT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
The dividend of SKT decreases each year by -6.91%.
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)-6.91%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
115.90% of the earnings are spent on dividend by SKT. This is not a sustainable payout ratio.
DP115.9%
EPS Next 2Y-1.5%
EPS Next 3Y2.1%
TANGER INC
NYSE:SKT (9/13/2024, 8:04:00 PM)
After market: 31.83 0 (0%)31.83
+0.28 (+0.89%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 35.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 17.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.55% | ||
| PM (TTM) | 19.6% | ||
| GM | 69.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.33%
EPS 3Y145.31%
EPS 5Y
EPS Q2Q%
EPS Next Y-11.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.11%
Revenue growth 3Y5.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y