Tanger (SKT) AI Stock Analysis

• Market Cap: $3.53B
• Dividend Yield: 3.58%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.66
• Revenue Growth: 12.38%
• EPS Growth: -6.36%
• Country: US
• Employees: 372
• Sector: Real Estate
• Sector Strength: 67
• Industry: REIT - Retail
• EPS (TTM): 0.17
• Shares Outstanding: 113,173,610
• 10 Day Avg. Volume: 1,095,160
• 30 Day Avg. Volume: 1,169,389
• PEG Ratio: -10.52
• Price to Book (P/B): 5.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.50
• Price Target Upside: 13.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Tanger Factory Outlet Centers, Inc. demonstrates solid financial health with strong profitability and effective cash flow management. However, high leverage and potential overvaluation pose risks. The company's strategic growth initiatives and positive earnings call insights contribute positively to its outlook, though technical indicators suggest limited momentum. The new share repurchase plan adds a positive strategic dimension, supporting the overall score.

Positive Factors

Financial Performance

Tanger Inc. reported earnings that exceeded expectations despite short-term equity dilution.

Future Performance

The company introduced its 2025 guidance above the Street's expectations, indicating confidence in future performance.

Sales Productivity

Re-merchandising efforts are paying off with sales productivity up (TTM +2.5%).

Negative Factors

Debt Concerns

There is a need to examine potential bad debt related to Forever 21, indicating some areas of concern.

Lease Terms

SKT's lease terms are shorter than those of traditional retail with a significant percentage of ABR turnover expected.

Market Demographics

SKT outlets are largely in secondary/tertiary markets, with lower demographics.

Tanger Business Overview & Revenue Model

Company Description

Tanger Inc. (NYSE: SKT) is a leading owner and operator of outlet and open-air retail shopping destinations, with over 43 years of expertise in the retail and outlet shopping industries. Tanger's portfolio of 38 outlet centers, one adjacent managed center and one open-air lifestyle center comprises over 15 million square feet well positioned across tourist destinations and vibrant markets in 20 U.S. states and Canada. A publicly traded REIT since 1993, Tanger continues to innovate the retail experience for its shoppers with over 3,000 stores operated by more than 700 different brand name companies.

How the Company Makes Money

Tanger makes money primarily through leasing retail space to tenants at its outlet shopping centers. The company generates revenue from rental income, which includes base rent, percentage rent based on tenant sales, and reimbursement from tenants for property operating expenses such as maintenance, utilities, and taxes. Additionally, Tanger may earn revenue from ancillary services and partnerships, such as advertising and sponsorship deals. The company's ability to attract popular retail brands and maintain high occupancy rates at its outlets is critical to its financial performance.

Tanger Financial Statement Overview

Summary

Tanger demonstrates solid financial health with strong profitability and efficient cash flow management. The company has shown positive revenue and cash flow growth trends, although it maintains a high level of debt. The balance between profitability and leverage is crucial for future stability.

Income Statement

Tanger's income statement shows a solid performance with a gross profit margin of 62.93% and a net profit margin of 17.72% for TTM, indicating strong profitability. The revenue growth rate has been positive, with a TTM increase of approximately 2.28% over the previous year. The EBIT and EBITDA margins are also robust at 41.99% and 68.57% respectively, highlighting effective cost management and operational efficiency. However, the gross profit margin has slightly declined from the previous year, which could be an area to monitor.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.07, suggesting significant leverage and potential risk if interest rates rise. However, the return on equity is a healthy 14.45% for TTM, indicating efficient use of equity to generate profits. The equity ratio is moderate at 26.64%, reflecting a balanced approach to financing between debt and equity. Overall, while the company is leveraged, it is managing to generate good returns on equity.

Cash Flow

Tanger's cash flow position is strong, with a free cash flow growth rate of 14.21% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is high at 2.83, showcasing the company's ability to convert its earnings into cash efficiently. The free cash flow to net income ratio is also favorable at 3.12, underscoring robust cash flow relative to net earnings. These metrics highlight strong cash flow management, supporting ongoing operations and potential debt reduction.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
538.05M	526.06M	464.41M	442.61M	426.52M	389.99M
	Gross Profit
338.80M	367.33M	318.86M	298.68M	285.79M	252.86M
	EBIT
225.99M	150.62M	133.84M	129.86M	117.27M	90.03M
	EBITDA
369.03M	289.31M	242.73M	241.77M	227.28M	207.17M
	Net Income Common Stockholders
95.38M	98.59M	99.15M	38.03M	-51.06M	-101.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.16M	46.99M	21.96M	264.57M	161.25M	84.83M
	Total Assets
2.48B	2.38B	2.32B	2.22B	2.16B	2.19B
	Total Debt
2.69B	1.51B	1.53B	1.52B	1.49B	1.66B
	Net Debt
2.68B	1.46B	1.51B	1.30B	1.32B	1.57B
	Total Liabilities
1.82B	1.70B	1.73B	1.70B	1.66B	1.83B
	Stockholders Equity
660.01M	652.37M	566.78M	491.64M	477.93M	341.39M
Cash Flow		Free Cash Flow
297.72M	260.68M	229.61M	166.60M	171.80M	136.74M
	Operating Cash Flow
270.03M	260.68M	229.61M	213.96M	217.72M	164.75M
	Investing Cash Flow
-326.48M	-178.01M	-409.56M	-98.82M	-22.74M	-18.77M
	Financing Cash Flow
58.70M	-48.34M	-19.28M	-64.16M	-118.38M	-77.59M

Tanger Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKT, the sentiment is Neutral. The current price of 31.21 is above the 20-day moving average (MA) of 30.77, below the 50-day MA of 31.52, and below the 200-day MA of 32.29, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 51.47 is Neutral, neither overbought nor oversold. The STOCH value of 46.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKT.

Tanger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVT	75 Outperform	$2.21B	125.46	1.07%	3.22%	7.45%	119.81%
PECO	70 Outperform	$5.02B	64.86	3.09%	3.32%	9.27%	19.51%
SKT	69 Neutral	$3.53B	36.94	15.89%	3.58%	12.38%	-6.36%
AKR	68 Neutral	$2.70B	122.52	0.92%	3.75%	2.62%	84.20%
KRG	65 Neutral	$5.09B	376.14	0.81%	4.53%	4.37%	-75.82%
Sector *	60 Neutral	$2.82B	10.29	0.39%	8508.26%	5.90%	-17.41%
MAC	53 Neutral	$4.22B	―	-4.79%	4.24%	4.88%	-66.88%

Tanger Corporate Events

Tanger Announces New $200 Million Share Repurchase Plan

On May 9, 2025, Tanger‘s Board of Directors approved a new share repurchase program, increasing the authorization to $200 million, replacing the previous $100 million plan set to expire on May 31, 2025. This strategic move allows flexibility in managing the company’s capital structure and potentially enhances shareholder value, although it does not obligate the company to buy back a specific amount of shares and can be adjusted or terminated as needed.

The most recent analyst rating on (SKT) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Tanger stock, see the SKT Stock Forecast page.

Spark’s Take on SKT Stock

According to Spark, TipRanks’ AI Analyst, SKT is a Neutral.

Tanger’s stock score reflects strong financial performance and positive earnings call insights, although technical indicators suggest limited momentum and valuation concerns. The company’s high debt level and potential overvaluation are key risks, while its strategic growth and effective cash flow management provide support for the stock’s stability.

To see Spark’s full report on SKT stock, click here.

Tanger Reports Strong Q1 2025 Financial Results

On April 30, 2025, Tanger reported its financial results for the first quarter of 2025, highlighting a strong performance with a net income of $0.17 per share and robust tenant demand. The company continues to execute its remerchandising strategy, maintaining a strong, low-leveraged balance sheet, and achieving positive leasing activity with a 14.1% increase in blended average rental rates.

Spark’s Take on SKT Stock

According to Spark, TipRanks’ AI Analyst, SKT is a Neutral.

Tanger’s stock reflects a solid financial performance with strong revenue growth and operational efficiency. The high leverage poses a risk, but effective cash generation and returns on equity mitigate some concerns. Technical analysis suggests limited upward momentum, while valuation indicates potential overvaluation. The earnings call was positive, highlighting strategic acquisitions and high occupancy rates, though tenant credit concerns and competition present risks.

To see Spark’s full report on SKT stock, click here.

Tanger Announces Termination of ATM Equity Program

Tanger Inc. has launched a new ‘at the market’ offering program, allowing the issuance and sale of its common shares up to $400 million, replacing a previous program. On February 24, 2025, Tanger terminated its existing ATM Equity Offering Sales Agreement from December 2023, having previously sold over 4.4 million shares and entered into forward sales agreements for nearly 1.9 million shares. The prior program, with $34.5 million in remaining shares, is now terminated except for outstanding forward sales provisions.

Tanger Reports Strong 2024 Financial Performance

On February 19, 2025, Tanger reported its financial results for the fourth quarter and full year of 2024, highlighting robust leasing activity and strategic acquisitions of two shopping centers. The company achieved an occupancy rate of 98% and increased its same center net operating income by 5.1% year-over-year, emphasizing its successful growth strategy and strong financial performance.