Tanger Inc. Common Stock (SKT)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $217 million in annual free cash flow (5.1% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 16.9% above cost of capital
• Attractive 3.3% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($12) with negative 216% margin of safety—limited downside protection
• High leverage at 2.30x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Tanger Inc. Common Stock is a small-cap real estate company valued at $4.2 billion. The business generates $595 million in annual revenue with a 5.6% net margin and $217 million in free cash flow. From a quality standpoint, Tanger shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.1 warrants caution. On valuation, the stock is trading at a premium 37.4x earnings, with trades far above its Graham Number ($12) with no margin of safety. Growth dynamics show revenue growing at 13.9% and profit growth of 26.3%. The 3.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $217 million in annual free cash flow (5.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 37x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer