NYSE:SKT

Stock Analysis Report

Tanger Factory Outlet Centers

Executive Summary

Tanger Factory Outlet Centers, Inc. (NYSE: SKT), is a publicly-traded REIT headquartered in Greensboro, North Carolina that presently operates and owns, or has an ownership interest in, a portfolio of 39 upscale outlet shopping centers.


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

How has Tanger Factory Outlet Centers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SKT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-30.3%

SKT

9.7%

US REITs

5.3%

US Market


1 Year Return

-75.3%

SKT

-20.4%

US REITs

-10.7%

US Market

Return vs Industry: SKT underperformed the US REITs industry which returned -20.4% over the past year.

Return vs Market: SKT underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

SKTIndustryMarket
7 Day-30.3%9.7%5.3%
30 Day-59.3%-21.5%-13.6%
90 Day-64.7%-24.3%-19.8%
1 Year-73.1%-75.3%-17.1%-20.4%-8.9%-10.7%
3 Year-81.2%-84.6%-0.9%-13.3%15.5%8.0%
5 Year-81.3%-85.8%13.3%-10.2%35.2%20.4%

Price Volatility Vs. Market

How volatile is Tanger Factory Outlet Centers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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 ($5) is trading below our estimate of fair value ($18.75)

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


Price To Earnings Ratio

PE vs Industry: SKT is good value based on its PE Ratio (5.4x) compared to the REITs industry average (24.3x).

PE vs Market: SKT is good value based on its PE Ratio (5.4x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: SKT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SKT is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Tanger Factory Outlet Centers forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKT's earnings are forecast to decline over the next 3 years (-27.9% per year).

Earnings vs Market: SKT's earnings are forecast to decline over the next 3 years (-27.9% per year).

High Growth Earnings: SKT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SKT's revenue is expected to decline over the next 3 years (-6% per year).

High Growth Revenue: SKT's revenue is forecast to decline over the next 3 years (-6% 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 (16.5%).


Next Steps

Past Performance

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

-15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKT has high quality earnings.

Growing Profit Margin: SKT's current net profit margins (17.8%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: SKT's earnings have declined by -15.3% per year over the past 5 years.

Accelerating Growth: SKT's earnings growth over the past year (103.8%) exceeds its 5-year average (-15.3% per year).

Earnings vs Industry: SKT earnings growth over the past year (103.8%) exceeded the REITs industry 5%.


Return on Equity

High ROE: Whilst SKT's Return on Equity (20.33%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Tanger Factory Outlet Centers's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SKT has a high level of physical assets or inventory.

Debt Coverage by Assets: SKT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: SKT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SKT has a sufficient allowance for bad loans.

Low Risk Liabilities: SKT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SKT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SKT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SKT has an appropriate level of bad loans.


Next Steps

Dividend

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

28.60%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SKT's dividend (28.6%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: SKT's dividend (28.6%) is in the top 25% of dividend payers in the US market (5.37%)


Stability and Growth of Payments

Stable Dividend: SKT's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.8%), SKT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.7% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Steve Tanger (70yo)

11.25s

Tenure

US$6,970,297

Compensation

Mr. Steven B. Tanger, also known as Steve, serves as a Director of Tanger Factory Outlet Centers, Inc., one of the largest owners and operators of outlet centers in the U.S. and Canada that is publicly tra ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD6.97M) is above average for companies of similar size in the US market ($USD2.13M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Tanger
CEO & Director11.25yrsUS$6.97m1.42% $7.2m
James Williams
Executive VP & CFO3.92yrsUS$1.29m0.10% $534.6k
Gareth Taylor
Executive VP8.33yrsUS$1.84m0.11% $582.0k
Lisa Morrison
Executive Vice President of Leasing18.92yrsUS$981.49k0.057% $288.7k
Thomas Guerrieri
VP, Chief Accounting Officer & Controller2.92yrsno data0.040% $205.0k
Cyndi Holt
Vice President of Investor Relationsno datano datano data
Quentin Pell
Vice President of Corporate Communications & Enterprise Risk Managementno datano datano data
Carrie Warren
Senior VP & Chief Marketing Officer8.25yrsUS$370.07k0.066% $337.6k
Mary Williams
Vice President of Human Resources12.92yrsno datano data
Charles Worsham
Senior Vice President of Construction & Development5.92yrsno data0.040% $206.5k

8.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SKT's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Tanger
CEO & Director11.25yrsUS$6.97m1.42% $7.2m
Thomas Reddin
Independent Director9.75yrsUS$289.42k0.059% $299.1k
Allan Schuman
Independent Director15.67yrsUS$251.92k0.064% $324.6k
William Benton
Independent Director26.83yrsUS$239.42k0.096% $489.7k
Jeffrey Citrin
Independent Director5.75yrsUS$264.42k0.0022% $11.0k
Thomas Robinson
Independent Director26.25yrsUS$239.42k0.089% $453.4k
David Henry
Non-Executive Chair of the Board0.92yrUS$251.92k0.050% $255.0k
Bridget Ryan-Berman
Independent Director11.25yrsUS$254.42k0.076% $390.2k
Susan Skerritt
Independent Director1.75yrsUS$25.27kno data
Luis Ubiñas
Director0.75yrno datano data

10.5yrs

Average Tenure

67yo

Average Age

Experienced Board: SKT's board of directors are seasoned and experienced ( 10.5 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tanger Factory Outlet Centers, Inc.'s company bio, 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$510.534m
  • Market Cap: US$464.461m
  • Shares outstanding: 97.80m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKTNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 1993
T6ODB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1993
0LD4LSE (London Stock Exchange)YesCommon SharesGBUSDMay 1993
T6OBRSE (Berne Stock Exchange)YesCommon SharesCHCHFMay 1993

Biography

Tanger Factory Outlet Centers, Inc. (NYSE: SKT), is a publicly-traded REIT headquartered in Greensboro, North Carolina that presently operates and owns, or has an ownership interest in, a portfolio of 39 upscale outlet shopping centers. Tanger's operating properties are located in 20 states and in Canada, totaling approximately 14.3 million square feet, leased to over 2,800 stores which are operated by more than 510 different brand name companies. The Company has more than 39 years of experience in the outlet industry. Tanger Outlet Centers continue to attract more than 181 million visitors annually. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter and year ended December 31, 2019. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:45
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.