Tanger Inc.
Tanger Inc. Fundamental Analysis
Tanger Inc. (SKT) shows moderate financial fundamentals with a PE ratio of 32.27, profit margin of 20.76%, and ROE of 18.24%. The company generates $0.6B in annual revenue with strong year-over-year growth of 10.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SKT's fundamental strength across five key dimensions:
Efficiency Score
WeakSKT struggles to generate sufficient returns from assets.
Valuation Score
ModerateSKT shows balanced valuation metrics.
Growth Score
ExcellentSKT delivers strong and consistent growth momentum.
Financial Health Score
WeakSKT carries high financial risk with limited liquidity.
Profitability Score
ExcellentSKT achieves industry-leading margins.
Key Financial Metrics
Is SKT Expensive or Cheap?
P/E Ratio
SKT trades at 32.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SKT's PEG of 1.22 indicates fair valuation.
Price to Book
The market values Tanger Inc. at 5.96 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.66 times EBITDA. This is generally considered low.
How Well Does SKT Make Money?
Net Profit Margin
For every $100 in sales, Tanger Inc. keeps $20.76 as profit after all expenses.
Operating Margin
Core operations generate 19.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.24 in profit for every $100 of shareholder equity.
ROA
Tanger Inc. generates $4.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tanger Inc. generates strong operating cash flow of $296.55M, reflecting robust business health.
Free Cash Flow
Tanger Inc. generates strong free cash flow of $230.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.00 in free cash annually.
FCF Yield
SKT converts 5.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SKT Stacks Against Its Sector Peers
| Metric | SKT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.27 | 23.35 | Worse (Expensive) |
| ROE | 18.24% | 665.00% | Weak |
| Net Margin | 20.76% | -37485.00% (disorted) | Strong |
| Debt/Equity | 2.92 | -21.05 (disorted) | Distorted |
| Current Ratio | 0.74 | 21.53 | Weak Liquidity |
| ROA | 4.37% | -931.00% (disorted) | Weak |
SKT outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tanger Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.22%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
359.30%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
48.55%
Industry Style: Income, Inflation Hedge, REIT
High Growth