TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
72.51 USD
-0.62 (-0.85%)
72.51 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TNC. TNC was compared to 130 industry peers in the Machinery industry. TNC has an average financial health and profitability rating. TNC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TNC was profitable.
In the past year TNC had a positive cash flow from operations.
In the past 5 years TNC has always been profitable.
Of the past 5 years TNC 4 years had a positive operating cash flow.
1.2 Ratios
TNC has a Return On Assets (4.36%) which is in line with its industry peers.
With a Return On Equity value of 8.55%, TNC perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
TNC's Return On Invested Capital of 8.14% is fine compared to the rest of the industry. TNC outperforms 60.77% of its industry peers.
TNC had an Average Return On Invested Capital over the past 3 years of 11.55%. This is in line with the industry average of 10.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 8.55% | ||
| ROIC | 8.14% |
ROA(3y)7.66%
ROA(5y)6.44%
ROE(3y)15.51%
ROE(5y)13.97%
ROIC(3y)11.55%
ROIC(5y)10.25%
1.3 Margins
TNC has a Profit Margin (4.42%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TNC has grown nicely.
TNC has a Operating Margin of 7.61%. This is comparable to the rest of the industry: TNC outperforms 49.23% of its industry peers.
In the last couple of years the Operating Margin of TNC has grown nicely.
Looking at the Gross Margin, with a value of 41.88%, TNC is in the better half of the industry, outperforming 77.69% of the companies in the same industry.
TNC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.61% | ||
| PM (TTM) | 4.42% | ||
| GM | 41.88% |
OM growth 3Y5.7%
OM growth 5Y6.37%
PM growth 3Y3.02%
PM growth 5Y10.07%
GM growth 3Y2.05%
GM growth 5Y1.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TNC is creating some value.
TNC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TNC has been increased compared to 5 years ago.
The debt/assets ratio for TNC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.53 indicates that TNC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TNC (3.53) is better than 63.08% of its industry peers.
TNC has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as TNC would need 3.87 years to pay back of all of its debts.
The Debt to FCF ratio of TNC (3.87) is better than 61.54% of its industry peers.
TNC has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.37, TNC perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.53 |
ROIC/WACC0.86
WACC9.45%
2.3 Liquidity
A Current Ratio of 2.13 indicates that TNC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.13, TNC is in line with its industry, outperforming 52.31% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that TNC should not have too much problems paying its short term obligations.
TNC has a better Quick ratio (1.39) than 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
TNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.57%.
Measured over the past years, TNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
Looking at the last year, TNC shows a decrease in Revenue. The Revenue has decreased by -2.24% in the last year.
TNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.
EPS 1Y (TTM)-19.57%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%5.04%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.96%
3.2 Future
Based on estimates for the next years, TNC will show a small growth in Earnings Per Share. The EPS will grow by 4.26% on average per year.
Based on estimates for the next years, TNC will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y-10.46%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
EPS Next 5YN/A
Revenue Next Year-3.09%
Revenue Next 2Y0.92%
Revenue Next 3Y2.34%
Revenue Next 5Y3.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.97, the valuation of TNC can be described as correct.
Based on the Price/Earnings ratio, TNC is valued cheaper than 87.69% of the companies in the same industry.
TNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
With a Price/Forward Earnings ratio of 10.84, the valuation of TNC can be described as very reasonable.
TNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNC is cheaper than 90.77% of the companies in the same industry.
TNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNC is valued a bit cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TNC is valued a bit cheaper than 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.31 | ||
| EV/EBITDA | 9.57 |
4.3 Compensation for Growth
TNC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y1.06%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 1.90, TNC pays a better dividend. On top of this TNC pays more dividend than 80.77% of the companies listed in the same industry.
TNC's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of TNC has a limited annual growth rate of 5.49%.
TNC has paid a dividend for at least 10 years, which is a reliable track record.
TNC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.49%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
TNC pays out 39.96% of its income as dividend. This is a sustainable payout ratio.
TNC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.96%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
72.51
-0.62 (-0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.06%
Inst Owner Change-1.9%
Ins Owners1.37%
Ins Owner Change-0.59%
Market Cap1.31B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target112.2 (54.74%)
Short Float %2.85%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend1.15
Dividend Growth(5Y)5.49%
DP39.96%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.67%
Min EPS beat(2)-9.49%
Max EPS beat(2)-3.84%
EPS beat(4)1
Avg EPS beat(4)-4.67%
Min EPS beat(4)-14.92%
Max EPS beat(4)9.58%
EPS beat(8)4
Avg EPS beat(8)7.63%
EPS beat(12)8
Avg EPS beat(12)18.86%
EPS beat(16)10
Avg EPS beat(16)13.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)-0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)0.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)1%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)-0.9%
PT rev (3m)-8.33%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-1.93%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 10.84 | ||
| P/S | 1.06 | ||
| P/FCF | 21.31 | ||
| P/OCF | 14.89 | ||
| P/B | 2.05 | ||
| P/tB | 3.49 | ||
| EV/EBITDA | 9.57 |
EPS(TTM)5.59
EY7.71%
EPS(NY)6.69
Fwd EY9.23%
FCF(TTM)3.4
FCFY4.69%
OCF(TTM)4.87
OCFY6.72%
SpS68.44
BVpS35.35
TBVpS20.78
PEG (NY)N/A
PEG (5Y)0.73
Graham Number66.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 8.55% | ||
| ROCE | 9.68% | ||
| ROIC | 8.14% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 12.99% | ||
| OM | 7.61% | ||
| PM (TTM) | 4.42% | ||
| GM | 41.88% | ||
| FCFM | 4.97% |
ROA(3y)7.66%
ROA(5y)6.44%
ROE(3y)15.51%
ROE(5y)13.97%
ROIC(3y)11.55%
ROIC(5y)10.25%
ROICexc(3y)13.11%
ROICexc(5y)11.83%
ROICexgc(3y)19.67%
ROICexgc(5y)19.23%
ROCE(3y)13.73%
ROCE(5y)12.18%
ROICexgc growth 3Y-3.55%
ROICexgc growth 5Y1.17%
ROICexc growth 3Y4.18%
ROICexc growth 5Y6.62%
OM growth 3Y5.7%
OM growth 5Y6.37%
PM growth 3Y3.02%
PM growth 5Y10.07%
GM growth 3Y2.05%
GM growth 5Y1.03%
F-Score4
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 46.26% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 8.35 | ||
| Cash Conversion | 58.13% | ||
| Profit Quality | 112.59% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 3.53 |
F-Score4
WACC9.45%
ROIC/WACC0.86
Cap/Depr(3y)44.63%
Cap/Depr(5y)45.36%
Cap/Sales(3y)1.92%
Cap/Sales(5y)2.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.57%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%5.04%
EPS Next Y-10.46%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.96%
Revenue Next Year-3.09%
Revenue Next 2Y0.92%
Revenue Next 3Y2.34%
Revenue Next 5Y3.86%
EBIT growth 1Y-29.45%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year42.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.44%
FCF growth 3Y11.3%
FCF growth 5Y15.83%
OCF growth 1Y-36.15%
OCF growth 3Y8.93%
OCF growth 5Y4.52%
TENNANT CO / TNC FAQ
What is the ChartMill fundamental rating of TENNANT CO (TNC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TNC.
What is the valuation status for TNC stock?
ChartMill assigns a valuation rating of 6 / 10 to TENNANT CO (TNC). This can be considered as Fairly Valued.
How profitable is TENNANT CO (TNC) stock?
TENNANT CO (TNC) has a profitability rating of 6 / 10.
What is the valuation of TENNANT CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TENNANT CO (TNC) is 12.97 and the Price/Book (PB) ratio is 2.05.
Can you provide the dividend sustainability for TNC stock?
The dividend rating of TENNANT CO (TNC) is 6 / 10 and the dividend payout ratio is 39.96%.