SKT

Tanger Factory Outlet CentersNYSE:SKT Stock Report

Market Cap

US$1.9b

7D

5.5%

1Y

173.4%

Updated

18 Sep, 2021

Data

Company Financials +
SKT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health1/6
Dividends4/6

SKT Overview

Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a leading operator of open-air upscale outlet shopping centers that owns, or has an ownership interest in, a portfolio of 38 centers.

Tanger Factory Outlet Centers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tanger Factory Outlet Centers
Historical stock prices
Current Share PriceUS$17.50
52 Week HighUS$5.56
52 Week LowUS$22.40
Beta1.96
1 Month Change9.03%
3 Month Change-1.46%
1 Year Change173.44%
3 Year Change-24.14%
5 Year Change-55.92%
Change since IPO180.00%

Recent News & Updates

Aug 05

Tanger: A Gamble On The Recovery

Tanger recently reported second quarter earnings that beat expectations but still show vulnerabilities. With issues reaching back to even before the pandemic began, Tanger is not a bargain at these levels despite some modest recovery in its fundamentals. With the company diluting shareholders and fully valued by some valuation metrics, Tanger's stock is only suitable for gamblers at this point.

Shareholder Returns

SKTUS REITsUS Market
7D5.5%-0.3%-0.6%
1Y173.4%32.5%33.8%

Return vs Industry: SKT exceeded the US REITs industry which returned 32.5% over the past year.

Return vs Market: SKT exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is SKT's price volatile compared to industry and market?
SKT volatility
SKT Beta1.96
Industry Beta0.82
Market Beta1

Stable Share Price: SKT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SKT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1981395Steve Yalofhttps://www.tangeroutlets.com

Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a leading operator of open-air upscale outlet shopping centers that owns, or has an ownership interest in, a portfolio of 38 centers. Tanger's operating properties are located in 20 states and in Canada, totaling approximately 14.1 million square feet, leased to over 2,700 stores operated by more than 500 different brand name companies. The Company has more than 39 years of experience in the outlet industry and is a publicly-traded REIT.

Valuation

Is Tanger Factory Outlet Centers undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKT ($17.5) is trading below our estimate of fair value ($36.73)

Significantly Below Fair Value: SKT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SKT is poor value based on its PE Ratio (97.6x) compared to the US REITs industry average (50.1x).

PE vs Market: SKT is poor value based on its PE Ratio (97.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SKT is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SKT is overvalued based on its PB Ratio (3.8x) compared to the US REITs industry average (2x).


Future Growth

How is Tanger Factory Outlet Centers forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

80.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKT's forecast earnings growth (80.5% per year) is above the savings rate (2%).

Earnings vs Market: SKT's earnings (80.5% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SKT's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: SKT's revenue is forecast to decline over the next 3 years (-4.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKT's Return on Equity is forecast to be low in 3 years time (10.7%).


Past Performance

How has Tanger Factory Outlet Centers performed over the past 5 years?

-53.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKT has a large one-off loss of $36.2M impacting its June 30 2021 financial results.

Growing Profit Margin: SKT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SKT's earnings have declined by 53.9% per year over the past 5 years.

Accelerating Growth: SKT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SKT has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (3.9%).


Return on Equity

High ROE: SKT's Return on Equity (4%) is considered low.


Financial Health

How is Tanger Factory Outlet Centers's financial position?


Financial Position Analysis

Short Term Liabilities: SKT's short term assets ($196.3M) exceed its short term liabilities ($121.7M).

Long Term Liabilities: SKT's short term assets ($196.3M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: SKT's debt to equity ratio (261.8%) is considered high.

Reducing Debt: SKT's debt to equity ratio has increased from 243.4% to 261.8% over the past 5 years.

Debt Coverage: SKT's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: SKT's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

What is Tanger Factory Outlet Centers's current dividend yield, its reliability and sustainability?

4.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKT's dividend (4.17%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: SKT's dividend (4.17%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: SKT's dividend payments have been volatile in the past 10 years.

Growing Dividend: SKT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21%), SKT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKT's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Steve Yalof (58 yo)

0.67

Tenure

US$5,798,705

Compensation

Mr. Stephen J. Yalof, also known as Steve, serves as Chief Executive Officer at Tanger Factory Outlet Centers, Inc. since January 1, 2021, serves as its President since April 10, 2020 and served as its Chi...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD5.80M) is above average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.


Leadership Team

Experienced Management: SKT's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: SKT's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SKT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.5%.


Top Shareholders

Company Information

Tanger Factory Outlet Centers, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Tanger Factory Outlet Centers, Inc.
  • Ticker: SKT
  • Exchange: NYSE
  • Founded: 1981
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.903b
  • Market Cap: US$1.819b
  • Shares outstanding: 108.75m
  • Website: https://www.tangeroutlets.com

Number of Employees


Location

  • Tanger Factory Outlet Centers, Inc.
  • 3200 Northline Avenue
  • Suite 360
  • Greensboro
  • North Carolina
  • 27408
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.