Tanger (SKT) AI Stock Analysis

• Market Cap: $3.65B
• Dividend Yield: 3.84%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 36.6
• Beta (1Y): 0.68
• Revenue Growth: 10.59%
• EPS Growth: -1.83%
• Country: US
• Employees: 372
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.26
• Shares Outstanding: 113,173,610
• 10 Day Avg. Volume: 1,120,141
• 30 Day Avg. Volume: 1,014,793
• PEG Ratio: -7.09
• Price to Book (P/B): 5.70
• Price to Sales (P/S): 7.07
• P/FCF Ratio: 14.70
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 9.51
• Enterprise Value/Gross Profit: 15.10
• Enterprise Value/Ebitda: 15.49
• 1Y Price Target: $34.11
• Price Target Upside: 5.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $36.00 ▲(11.49% Upside)

Tanger's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's strategic initiatives and effective cash flow management are significant strengths. However, the high P/E ratio suggests overvaluation, and the high debt level remains a concern. The positive corporate events further support the stock's potential, but careful monitoring of debt and valuation is advised.

Positive Factors

Financial Performance

The company's core funds from operations per share exceeded expectations, driven by strong growth in same-store net operating income and a rebound in occupancy.

Guidance and Forecasts

Annual guidance for funds from operations was raised, indicating confidence in future performance.

Risk Management

SKT has successfully lowered its exposure to weaker tenants, reducing potential risks.

Negative Factors

Debt and Risks

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

Occupancy Challenges

SS sequential occupancy dipped -230bps which is about -100bps worse than SKT's historical average.

Valuation Concerns

A 12-month price target of $40.00 is based on a target Q5-Q8 AFFO multiple of 21.3x.

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 Factory Outlet Centers, Inc. generates revenue primarily through leasing retail space to a diverse array of tenants, including brand-name and designer retailers. The company's revenue model is based on collecting rental income from these retail tenants, which typically consists of fixed minimum rents, percentage rents based on tenant sales, and various tenant reimbursements for property-level expenses such as maintenance, insurance, and real estate taxes. Additionally, Tanger may earn income from selling real estate assets or leasing space for short-term events and pop-up shops. The company's ability to attract high-quality tenants, maintain high occupancy rates, and strategically expand its portfolio contributes significantly to its earnings. Furthermore, Tanger's partnerships with well-known retail brands and its reputation for providing premium shopping experiences at competitive prices are crucial factors in maintaining its revenue streams.

Tanger Financial Statement Overview

Summary

Tanger exhibits 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. Continued focus on managing debt levels while sustaining revenue and cash flow growth will be key to maintaining financial strength.

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
EBITDA	330.25M	302.09M	242.73M	241.77M	227.28M	207.17M
Net Income	95.38M	98.59M	99.15M	38.03M	-51.06M	-101.47M
Balance Sheet
Total Assets	2.48B	2.38B	2.32B	2.22B	2.16B	2.19B
Cash, Cash Equivalents and Short-Term Investments	10.16M	46.99M	21.96M	264.57M	161.25M	84.83M
Total Debt	1.65B	1.51B	1.53B	1.52B	1.49B	1.66B
Total Liabilities	1.82B	1.70B	1.73B	1.70B	1.66B	1.83B
Stockholders Equity	633.89M	652.37M	566.78M	491.64M	477.93M	341.39M
Cash Flow
Free Cash Flow	296.89M	253.07M	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: Positive
• Last Price: 32.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKT, the sentiment is Positive. The current price of 32.29 is above the 20-day moving average (MA) of 31.14, above the 50-day MA of 30.40, and above the 200-day MA of 32.18, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 49.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKT.

Tanger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKT	76 Outperform	$3.65B	36.63	16.78%	3.84%	10.59%	-1.83%
IVT	72 Outperform	$2.15B	19.35	6.67%	3.43%	8.63%	1412.68%
AKR	70 Neutral	$2.54B	114.44	0.95%	4.22%	7.09%	2591.94%
KRG	69 Neutral	$0.00	27.80	5.53%	4.88%	4.03%	―
PECO	68 Neutral	$4.71B	64.57	3.01%	3.65%	10.31%	14.39%
MAC	62 Neutral	$4.51B	―	-4.79%	3.98%	9.58%	-3.85%
Sector *	53 Neutral	$1.19B	3.49	-2.19%	6.01%	-2.24%	-167.40%

Tanger Corporate Events

Tanger Reports Strong Q2 2025 Financial Results

On August 4, 2025, Tanger reported strong financial results for the second quarter of 2025, with net income and funds from operations showing significant growth compared to the previous year. The company raised its full-year guidance, driven by effective leasing, operating, and marketing strategies, which have increased shopper engagement and traffic. Tanger’s occupancy rates and average tenant sales per square foot have improved, reflecting successful portfolio management and tenant remerchandising efforts. The company’s robust leasing activity and strong balance sheet provide a solid foundation for continued growth and flexibility in pursuing long-term opportunities.

The most recent analyst rating on (SKT) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Tanger stock, see the SKT Stock Forecast page.

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.