TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
77.66 USD
-1.57 (-1.98%)
77.66 USD
0 (0%)
Overall TNC gets a fundamental rating of 5 out of 10. We evaluated TNC against 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
- TNC has a Return On Assets (4.36%) which is in line with its industry peers.
- TNC has a Return On Equity (8.55%) which is comparable to the rest of the industry.
- TNC has a better Return On Invested Capital (8.14%) 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 10.24%.
| 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
- With a Profit Margin value of 4.42%, TNC perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
- 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 49.24% of the companies in the same industry.
- 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.
- In the last couple of years the Gross Margin of TNC has remained more or less at the same level.
| 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.
- TNC has about the same amout of shares outstanding than it did 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
- An Altman-Z score of 3.62 indicates that TNC is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.62, TNC is doing good in the industry, outperforming 60.61% 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.
- TNC's Debt to FCF ratio of 3.87 is in line compared to the rest of the industry. TNC outperforms 59.85% of its industry peers.
- A Debt/Equity ratio of 0.37 indicates that TNC is not too dependend on debt financing.
- The Debt to Equity ratio of TNC (0.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.62 |
ROIC/WACC0.83
WACC9.85%
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 53.79% of its industry peers.
- A Quick Ratio of 1.39 indicates that TNC should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.39, TNC is doing good in the industry, outperforming 60.61% of the companies in the same industry.
| 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%.
- 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 -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.
- 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
- 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
- TNC is valuated correctly with a Price/Earnings ratio of 13.89.
- TNC's Price/Earnings ratio is rather cheap when compared to the industry. TNC is cheaper than 90.91% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. TNC is valued slightly cheaper when compared to this.
- TNC is valuated reasonably with a Price/Forward Earnings ratio of 11.53.
- 94.70% of the companies in the same industry are more expensive than TNC, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TNC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TNC is valued cheaply inside the industry as 84.09% of the companies are valued more expensively.
- 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 | 22.82 | ||
| EV/EBITDA | 10.19 |
4.3 Compensation for Growth
- The decent profitability rating of TNC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y1.39%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
- TNC has a Yearly Dividend Yield of 1.57%. 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 1.01. TNC pays more dividend than 83.33% of the companies in the same industry.
- TNC's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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.
- 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%
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.