TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
78.33 USD
+0.23 (+0.29%)
78.33 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TNC. TNC was compared to 132 industry peers in the Machinery industry. TNC has only an average score on both its financial health and profitability. TNC is valued correctly, 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.
- TNC had positive earnings in each of the past 5 years.
- TNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 4.36%, TNC perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
- The Return On Equity of TNC (8.55%) is comparable to the rest of the industry.
- The Return On Invested Capital of TNC (8.14%) is better than 61.36% 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 10.25%.
| 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 of 4.42%. This is comparable to the rest of the industry: TNC outperforms 51.52% of its industry peers.
- In the last couple of years the Profit Margin of TNC has grown nicely.
- TNC has a Operating Margin (7.61%) which is in line with its industry peers.
- TNC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 41.88%, TNC is in the better half of the industry, outperforming 79.55% 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
- TNC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for TNC remains at a similar level compared to 1 year ago.
- The number of shares outstanding for TNC has been increased compared to 5 years ago.
- TNC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.63 indicates that TNC is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.63, TNC is in the better half of the industry, outperforming 62.88% of the companies in the same industry.
- The Debt to FCF ratio of TNC is 3.87, which is a good value as it means it would take TNC, 3.87 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 3.87, TNC perfoms like the industry average, outperforming 59.85% of the companies in the same industry.
- 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 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.85
WACC9.58%
2.3 Liquidity
- A Current Ratio of 2.13 indicates that TNC has no problem at all paying its short term obligations.
- TNC has a Current ratio (2.13) which is in line with its industry peers.
- TNC has a Quick Ratio of 1.39. This is a normal value and indicates that TNC is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of TNC (1.39) is better than 60.61% 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%.
- TNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
- TNC shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
- 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
- TNC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.36% yearly.
- TNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y-11.03%
EPS Next 2Y1.39%
EPS Next 3Y4.36%
EPS Next 5YN/A
Revenue Next Year-3.86%
Revenue Next 2Y0.77%
Revenue Next 3Y2.19%
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
- The Price/Earnings ratio is 14.01, which indicates a correct valuation of TNC.
- Compared to the rest of the industry, the Price/Earnings ratio of TNC indicates a rather cheap valuation: TNC is cheaper than 90.15% of the companies listed in the same industry.
- TNC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.63, the valuation of TNC can be described as reasonable.
- Based on the Price/Forward Earnings ratio, TNC is valued cheaper than 94.70% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. TNC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TNC is valued cheaper than 82.58% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TNC is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.02 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
- The decent profitability rating of TNC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y1.39%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.60%, TNC has a reasonable but not impressive dividend return.
- TNC's Dividend Yield is rather good when compared to the industry average which is at 0.80. TNC pays more dividend than 84.09% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, TNC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
- The dividend of TNC has a limited annual growth rate of 5.49%.
- TNC has been paying a dividend for at least 10 years, so it has a reliable track record.
- TNC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.49%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 39.96% of the earnings are spent on dividend by TNC. This is a low number and sustainable payout ratio.
- The dividend of TNC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.96%
EPS Next 2Y1.39%
EPS Next 3Y4.36%
78.33
+0.23 (+0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-16 2026-02-16/bmo
Inst Owners98.27%
Inst Owner Change0.19%
Ins Owners1.39%
Ins Owner Change-0.59%
Market Cap1.42B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target112.2 (43.24%)
Short Float %3.44%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend1.15
Dividend Growth(5Y)5.49%
DP39.96%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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%
PT rev (3m)-0.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 11.63 | ||
| P/S | 1.14 | ||
| P/FCF | 23.02 | ||
| P/OCF | 16.08 | ||
| P/B | 2.22 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)5.59
EY7.14%
EPS(NY)6.73
Fwd EY8.6%
FCF(TTM)3.4
FCFY4.34%
OCF(TTM)4.87
OCFY6.22%
SpS68.44
BVpS35.35
TBVpS20.78
PEG (NY)N/A
PEG (5Y)0.79
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 | 3.63 |
F-Score4
WACC9.58%
ROIC/WACC0.85
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-11.03%
EPS Next 2Y1.39%
EPS Next 3Y4.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.96%
Revenue Next Year-3.86%
Revenue Next 2Y0.77%
Revenue Next 3Y2.19%
Revenue Next 5Y3.86%
EBIT growth 1Y-29.45%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year42.39%
EBIT Next 3Y16.96%
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.
Can you provide the valuation status for TENNANT CO?
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 financial health of TENNANT CO (TNC) stock?
The financial health rating of TENNANT CO (TNC) is 6 / 10.
What is the expected EPS growth for TENNANT CO (TNC) stock?
The Earnings per Share (EPS) of TENNANT CO (TNC) is expected to decline by -11.03% in the next year.