Headquartered in Greensboro, NORTH CAROLINA, Tanger Factory Outlet Centers Inc (SKT) trades in the New York Stock Exchange.
The company presents its business model with the following words:
Tanger Factory Outlet Centers, Inc. is a fully-integrated, self-administered and self-managed real estate investment trust. The company is headquartered in Greensboro, North Carolina and currently employs 285 full-time employees. The firm is a fully-integrated, self-administered and self-managed real estate investment trust (REIT), which focuses on developing, acquiring, owning, operating and managing outlet shopping centers.
Business Growth Year on Year
Tanger Factory Outlet Centers Inc does not report a very significant amount of sales, which is not positive. With that, market participants will appreciate SKT’s gross profit ratio of 64%. SKT does not report very significant EBITDA growth. But, the company’s EBITDA ratio is positive an equal to 53%. I think that when more investors get to know the financial statistics of SKT, the stock demand will increase.
Regarding the share count, I appreciate that the shares outstanding decreased a 1% .Hence, the intrinsic valuation of each share increased. If the company continues to decrease the share count, the share price will most likely increase.
Stable Balance Sheet
With an asset/liability ratio of more than 1x, SKT’s balance sheet looks stable. With that, SKT’s short term debt is more significant than the cash in hand. I believe that Tanger Factory Outlet Centers Inc may have to negotiate its debt soon.
SKT trades at 38x EBITDA, which may not seem cheap.Nevertheless with the company’s EBITDA margin of 53% the EV/EBIDA ratio makes sense. Notice also that the quarterly figures were beneficial. In Q4, SKT reported quarterly sales of $111 million, and gross profit of $76 million.
In addition, SKT is profitable, which is useful. Tanger Factory Outlet Centers Inc released positive quarterly EBITDA of $66 million. In my opinion, considering the quality of the business, I see room for SKT to grow into its valuation over time. SKT also showed positive net income of $0.263 million.
Disclosure: I don’t own shares
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