TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
77 USD
-0.61 (-0.79%)
77.52 USD
+0.52 (+0.68%)
Overall TNC gets a fundamental rating of 5 out of 10. We evaluated TNC against 130 industry peers in the Machinery industry. Both the profitability and the financial health of TNC get a neutral evaluation. Nothing too spectacular is happening here. 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
TNC had positive earnings in the past year.
TNC had a positive operating cash flow in the past year.
TNC had positive earnings in each of the past 5 years.
Of the past 5 years TNC 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TNC (4.36%) is comparable to the rest of the industry.
TNC has a Return On Equity (8.55%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 8.14%, TNC is doing good in the industry, outperforming 60.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TNC is in line with the industry average of 10.30%.
| 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 51.54% of its industry peers.
In the last couple of years the Profit Margin of TNC has grown nicely.
With a Operating Margin value of 7.61%, TNC perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
In the last couple of years the Operating Margin of TNC has grown nicely.
The Gross Margin of TNC (41.88%) is better than 77.69% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TNC is still creating some value.
Compared to 1 year ago, TNC has about the same amount of shares outstanding.
Compared to 5 years ago, TNC has more shares outstanding
TNC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that TNC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TNC (3.61) is better than 63.08% of its industry peers.
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.
TNC's Debt to FCF ratio of 3.87 is in line compared to the rest of the industry. TNC outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that TNC is not too dependend on debt financing.
TNC's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. TNC outperforms 57.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.84
WACC9.75%
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 of 2.13. This is comparable to the rest of the industry: TNC outperforms 53.08% 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's Quick ratio of 1.39 is in line compared to the rest of the industry. TNC outperforms 60.00% 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.
TNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
The Revenue has decreased by -2.24% in the past year.
Measured over the past years, TNC shows a small growth in Revenue. The Revenue has been growing by 2.49% on average per year.
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
The Earnings Per Share is expected to grow by 4.36% on average over the next years.
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-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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
TNC is valuated correctly with a Price/Earnings ratio of 13.77.
89.23% of the companies in the same industry are more expensive than TNC, based on the Price/Earnings ratio.
TNC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.44, which indicates a very decent valuation of TNC.
91.54% of the companies in the same industry are more expensive than TNC, based on the Price/Forward Earnings ratio.
TNC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNC is valued a bit cheaper than 79.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNC indicates a somewhat cheap valuation: TNC is cheaper than 62.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.63 | ||
| EV/EBITDA | 10.11 |
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)0.77
EPS Next 2Y1.39%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 1.00, TNC pays a better dividend. On top of this TNC pays more dividend than 82.31% of the companies listed in the same industry.
TNC's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| 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 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.
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%
77
-0.61 (-0.79%)
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 Cap1.40B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target112.2 (45.71%)
Short Float %3.09%
Short Ratio5.6
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-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)1.15%
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)-1.5%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 11.44 | ||
| P/S | 1.13 | ||
| P/FCF | 22.63 | ||
| P/OCF | 15.81 | ||
| P/B | 2.18 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 10.11 |
EPS(TTM)5.59
EY7.26%
EPS(NY)6.73
Fwd EY8.74%
FCF(TTM)3.4
FCFY4.42%
OCF(TTM)4.87
OCFY6.33%
SpS68.44
BVpS35.35
TBVpS20.78
PEG (NY)N/A
PEG (5Y)0.77
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 | 3.61 |
F-Score4
WACC9.75%
ROIC/WACC0.84
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.
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 13.77 and the Price/Book (PB) ratio is 2.18.
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%.