Tanger (SKT) AI Stock Analysis

• Market Cap: $3.78B
• Dividend Yield: 3.4%
• Average Volume (3M): 898.26K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.72
• Revenue Growth: 10.59%
• EPS Growth: -1.83%
• Country: US
• Employees: 372
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Retail
• EPS (TTM): 0.26
• Shares Outstanding: 113,174,000
• 10 Day Avg. Volume: 689,181
• 30 Day Avg. Volume: 898,259
• 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: 1.35
• Enterprise Value/Revenue: 9.51
• Enterprise Value/Gross Profit: 15.10
• Enterprise Value/Ebitda: 15.49
• 1Y Price Target: $34.75
• Price Target Upside: 2.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $36.00 ▲(6.16% Upside)

Tanger's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. The technical analysis indicates a positive trend, although potential overbought conditions should be monitored. The high P/E ratio suggests the stock might be overvalued, but the attractive dividend yield provides some balance.

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.

Negative Factors

Leasing Activity

Leasing activity was solid with TTM activity up (2.5M sf) but spreads compressed.

Occupancy Rates

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

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 generates revenue primarily through leasing retail space to various brand-name and designer retailers within its outlet centers. The company earns rental income from both fixed and percentage leases, with the latter allowing them to receive a percentage of the sales made by tenants, which can significantly increase revenue during peak seasons. Additionally, Tanger benefits from ancillary income sources such as advertising, sponsorships, and promotional events held within its properties. The company also engages in strategic partnerships with retailers to enhance the shopping experience and drive foot traffic, ultimately contributing to its financial performance.

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: 33.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 33.91 is above the 20-day moving average (MA) of 32.25, above the 50-day MA of 31.41, and above the 200-day MA of 32.17, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 82.37 is Negative, 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
IVT	78 Outperform	$2.27B	20.56	6.67%	3.13%	8.63%	1412.68%
SKT	75 Outperform	$3.78B	37.82	16.78%	3.40%	10.59%	-1.83%
PECO	73 Outperform	$4.76B	65.48	3.01%	3.54%	10.31%	14.39%
AKR	67 Neutral	$2.61B	118.33	0.95%	3.91%	7.09%	2591.94%
KRG	66 Neutral	$4.90B	28.41	5.53%	4.71%	4.03%	―
MAC	55 Neutral	$4.81B	―	-19.00%	3.70%	4.53%	40.88%
Sector *	53 Neutral	$1.24B	2.96	-5.63%	5.76%	-4.15%	-87.10%

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.