Operating Margin - Tanger Inc (SWB:T6O)

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Price: 27.94 EUR -0.18%

Market Cap: 1.9B EUR

29.6%

Current

28%

Average

25.7%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

29.6%

Operating Profit

166.3m

Revenue

562m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US	T	Tanger Inc SWB:T6O	1.9B EUR	30%
US		Simon Property Group Inc NYSE:SPG	59.5B USD	51%
US		Realty Income Corp NYSE:O	52.6B USD	44%
SG		CapitaLand Integrated Commercial Trust SGX:C38U	17B	64%
AU		Scentre Group ASX:SCG	21.6B AUD	67%
US		Kimco Realty Corp NYSE:KIM	13.7B USD	33%
US		Regency Centers Corp NASDAQ:REG	12.3B USD	37%
HK		Link Real Estate Investment Trust HKEX:823	88.9B HKD	67%
FR		Klepierre SA PAR:LI	9.4B EUR	64%
US		Federal Realty Investment Trust NYSE:FRT	8.5B USD	35%
FR		Unibail-Rodamco-Westfield SE AEX:URW	7.2B EUR	55%

Tanger Inc
Glance View

Market Cap

1.9B EUR

Industry

Real Estate

In the bustling world of retail real estate, Tanger Inc. emerges as a pivotal player, orchestrating a unique space where brands and shoppers converge. Founded by Stanley K. Tanger in 1981, this company carved its niche by developing, owning, and operating upscale open-air outlet shopping centers across the United States and Canada. Their business model revolves around leasing retail spaces to renowned brands at these centers, offering a curated experience of value shopping. Unlike traditional malls, Tanger's outlets are designed as destinations — places where consumers can indulge in a treasure hunt for bargains in an open-air atmosphere, often drawing tourists and locals alike looking to enjoy shopping as part of a larger outing. This vision allows brands to clear excess inventory while maintaining brand value, whereas consumers are enticed with possibilities of fashion finds at attractive prices. Revenue for Tanger Inc. primarily stems from rental income collected from its tenants, complemented by additional income streams such as percentage rents and tenant reimbursements for operating expenses. The company’s adeptness in site selection further enhances its profitability, with locations strategically chosen for high traffic potential and economic resilience. Tanger's commitment to creating value extends beyond mere commerce; they emphasize delivering a vibrant shopping experience through tailored marketing strategies and dynamic brand partnerships. By mastering the interplay of real estate and retail, Tanger Inc. crafts a business model that thrives on the synergies between consumer demand for value and retailers' need for efficient inventory management, thereby remaining a steadfast force in the evolving landscape of retail.

View T6O Analysis

T6O Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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	Berkshire Hathaway Inc NYSE:BRK.A	742 550 USD 0.99%
	Bank of America Corp NYSE:BAC	54.56 USD 0.89%
	Mastercard Inc NYSE:MA	563.37 USD 4.55%
	UnitedHealth Group Inc NYSE:UNH	336.73 USD 2.55%
	Exxon Mobil Corp NYSE:XOM	119.54 USD

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	Skyworks Solutions Inc NASDAQ:SWKS	68.25 USD -0.81%
	Weatherford International PLC NASDAQ:WFRD	81.21 USD -0.12%

	Johnson & Johnson NYSE:JNJ	210.01 USD 1.68%
	Bank of America Corp NYSE:BAC	54.56 USD 0.89%
	Mastercard Inc NYSE:MA	563.37 USD 4.55%
	Salesforce Inc NYSE:CRM	262.35 USD -0.7%
	Abbvie Inc NYSE:ABBV	223.98 USD -0.53%
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Tanger Inc
SWB:T6O