TENNANT CO (TNC) Stock Fundamental Analysis
USA - NYSE:TNC - US8803451033 - Common Stock
79.26 USD
-0.7 (-0.88%)
Taking everything into account, TNC scores 5 out of 10 in our fundamental rating. TNC was compared to 129 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TNC was profitable.
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
TNC has a Return On Assets of 4.89%. This is comparable to the rest of the industry: TNC outperforms 54.26% of its industry peers.
The Return On Equity of TNC (9.31%) is comparable to the rest of the industry.
The Return On Invested Capital of TNC (8.83%) is better than 62.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TNC is in line with the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 9.31% | ||
| ROIC | 8.83% |
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 (4.84%) which is comparable to the rest of the industry.
TNC's Profit Margin has improved in the last couple of years.
The Operating Margin of TNC (8.09%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TNC has grown nicely.
TNC has a better Gross Margin (41.81%) than 77.52% of its industry peers.
TNC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.09% | ||
| PM (TTM) | 4.84% | ||
| GM | 41.81% |
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.
TNC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TNC has an improved debt to assets ratio.
2.2 Solvency
TNC has an Altman-Z score of 3.78. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
TNC's Altman-Z score of 3.78 is fine compared to the rest of the industry. TNC outperforms 63.57% of its industry peers.
TNC has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as TNC would need 3.25 years to pay back of all of its debts.
The Debt to FCF ratio of TNC (3.25) is better than 68.99% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that TNC is not too dependend on debt financing.
TNC's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. TNC outperforms 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 3.78 |
ROIC/WACC0.92
WACC9.57%
2.3 Liquidity
A Current Ratio of 2.09 indicates that TNC has no problem at all paying its short term obligations.
With a Current ratio value of 2.09, TNC perfoms like the industry average, outperforming 52.71% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that TNC should not have too much problems paying its short term obligations.
TNC has a Quick ratio (1.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for TNC have decreased strongly by -20.00% in the last year.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
TNC shows a decrease in Revenue. In the last year, the revenue decreased by -0.38%.
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)-20%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%-18.58%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.75%
3.2 Future
TNC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.11% yearly.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y-11.18%
EPS Next 2Y0.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.86%
Revenue Next 2Y0.96%
Revenue Next 3Y3.29%
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
A Price/Earnings ratio of 14.36 indicates a correct valuation of TNC.
TNC's Price/Earnings ratio is rather cheap when compared to the industry. TNC is cheaper than 85.27% of the companies in the same industry.
TNC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.53.
With a Price/Forward Earnings ratio of 12.07, TNC is valued correctly.
89.15% of the companies in the same industry are more expensive than TNC, based on the Price/Forward Earnings ratio.
TNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNC is valued a bit cheaper than the industry average as 77.52% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TNC is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.25 | ||
| EV/EBITDA | 10.2 |
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)0.81
EPS Next 2Y0.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.48%.
Compared to an average industry Dividend Yield of 1.81, TNC pays a bit more dividend than its industry peers.
TNC's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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
35.91% of the earnings are spent on dividend by TNC. This is a low number and sustainable payout ratio.
TNC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.91%
EPS Next 2Y0.11%
EPS Next 3YN/A
NYSE:TNC (10/16/2025, 1:33:07 PM)
79.26
-0.7 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.06%
Inst Owner Change-0.03%
Ins Owners1.37%
Ins Owner Change1.46%
Market Cap1.46B
Analysts85.71
Price Target113.22 (42.85%)
Short Float %2.71%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend1.15
Dividend Growth(5Y)5.49%
DP35.91%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.21%
Min EPS beat(2)-14.92%
Max EPS beat(2)-9.49%
EPS beat(4)1
Avg EPS beat(4)-4.73%
Min EPS beat(4)-14.92%
Max EPS beat(4)9.58%
EPS beat(8)5
Avg EPS beat(8)10.03%
EPS beat(12)8
Avg EPS beat(12)18.28%
EPS beat(16)11
Avg EPS beat(16)17.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)-0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)0.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)5
Avg Revenue beat(12)0.46%
Revenue beat(16)6
Avg Revenue beat(16)-0.44%
PT rev (1m)0%
PT rev (3m)-7.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.07 | ||
| P/S | 1.17 | ||
| P/FCF | 22.25 | ||
| P/OCF | 16.21 | ||
| P/B | 2.25 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)5.52
EY6.96%
EPS(NY)6.57
Fwd EY8.28%
FCF(TTM)3.56
FCFY4.49%
OCF(TTM)4.89
OCFY6.17%
SpS67.86
BVpS35.3
TBVpS20.93
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 9.31% | ||
| ROCE | 10.49% | ||
| ROIC | 8.83% | ||
| ROICexc | 9.63% | ||
| ROICexgc | 13.74% | ||
| OM | 8.09% | ||
| PM (TTM) | 4.84% | ||
| GM | 41.81% | ||
| FCFM | 5.25% |
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%
ROICexcg growth 3Y-3.55%
ROICexcg 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-Score5
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 43.36% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 8.52 | ||
| Cash Conversion | 57.19% | ||
| Profit Quality | 108.4% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.78 |
F-Score5
WACC9.57%
ROIC/WACC0.92
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)-20%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%-18.58%
EPS Next Y-11.18%
EPS Next 2Y0.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.75%
Revenue Next Year-2.86%
Revenue Next 2Y0.96%
Revenue Next 3Y3.29%
Revenue Next 5Y3.86%
EBIT growth 1Y-26.47%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year42.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y55.19%
FCF growth 3Y11.3%
FCF growth 5Y15.83%
OCF growth 1Y31.44%
OCF growth 3Y8.93%
OCF growth 5Y4.52%