TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
73.7 USD
-0.35 (-0.47%)
73.7 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years TNC has been profitable.
Of the past 5 years TNC 4 years had a positive operating cash flow.
1.2 Ratios
TNC's Return On Assets of 4.36% is in line compared to the rest of the industry. TNC outperforms 54.55% of its industry peers.
TNC has a Return On Equity of 8.55%. This is comparable to the rest of the industry: TNC outperforms 58.33% of its industry peers.
The Return On Invested Capital of TNC (8.14%) is better than 61.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNC is in line with the industry average of 10.27%.
| 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's Profit Margin of 4.42% is in line compared to the rest of the industry. TNC outperforms 52.27% 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.
In the last couple of years the Operating Margin of TNC has grown nicely.
TNC has a Gross Margin of 41.88%. This is in the better half of the industry: TNC outperforms 78.79% of its industry peers.
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.
The number of shares outstanding for TNC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TNC has more shares outstanding
The debt/assets ratio for TNC has been reduced compared to a year ago.
2.2 Solvency
TNC has an Altman-Z score of 3.55. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.55, TNC is doing good in the industry, outperforming 62.12% 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.
The Debt to FCF ratio of TNC (3.87) is better than 60.61% 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.
TNC has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.85
WACC9.55%
2.3 Liquidity
TNC has a Current Ratio of 2.13. This indicates that TNC is financially healthy and has no problem in meeting its short term obligations.
TNC has a Current ratio of 2.13. This is comparable to the rest of the industry: TNC outperforms 53.79% of 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.
TNC has a better Quick ratio (1.39) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The earnings per share for TNC have decreased strongly by -19.57% in the last year.
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.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.18, TNC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of TNC indicates a rather cheap valuation: TNC is cheaper than 89.39% of the companies listed in the same industry.
TNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 10.95, the valuation of TNC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TNC is valued cheaply inside the industry as 94.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, TNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
81.06% of the companies in the same industry are more expensive than TNC, based on the Enterprise Value to EBITDA ratio.
63.64% of the companies in the same industry are more expensive than TNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.66 | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
The decent profitability rating of TNC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y1.39%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
TNC's Dividend Yield is rather good when compared to the industry average which is at 0.98. TNC pays more dividend than 82.58% of the companies in the same industry.
TNC's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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 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 2Y1.39%
EPS Next 3Y4.36%
73.7
-0.35 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.55%
Inst Owner Change-1.9%
Ins Owners1.39%
Ins Owner Change-0.59%
Market Cap1.34B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target112.2 (52.24%)
Short Float %3.44%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)-0.63%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 10.95 | ||
| P/S | 1.08 | ||
| P/FCF | 21.66 | ||
| P/OCF | 15.13 | ||
| P/B | 2.08 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 9.71 |
EPS(TTM)5.59
EY7.58%
EPS(NY)6.73
Fwd EY9.14%
FCF(TTM)3.4
FCFY4.62%
OCF(TTM)4.87
OCFY6.61%
SpS68.44
BVpS35.35
TBVpS20.78
PEG (NY)N/A
PEG (5Y)0.74
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 | 3.55 |
F-Score4
WACC9.55%
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.