TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
73.13 USD
-0.33 (-0.45%)
73.13 USD
0 (0%)
TNC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. TNC has an average financial health and profitability rating. TNC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TNC had positive earnings in the past year.
In the past year TNC had a positive cash flow from operations.
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
With a Return On Assets value of 4.36%, TNC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
TNC has a Return On Equity of 8.55%. This is comparable to the rest of the industry: TNC outperforms 56.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.14%, TNC is in the better half of the industry, outperforming 60.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TNC is in line with the industry average of 10.34%.
| 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 (4.42%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TNC has grown nicely.
TNC has a Operating Margin of 7.61%. This is comparable to the rest of the industry: TNC outperforms 49.23% of its industry peers.
TNC's Operating Margin has improved in the last couple of years.
TNC has a better Gross Margin (41.88%) 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.
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
TNC has an Altman-Z score of 3.58. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.58, TNC is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
TNC has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as TNC would need 3.87 years to pay back of all of its debts.
TNC has a better Debt to FCF ratio (3.87) than 61.54% 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's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. TNC outperforms 59.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.86
WACC9.45%
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.
Looking at the Current ratio, with a value of 2.13, TNC is in line with its industry, outperforming 52.31% of the companies in the same industry.
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 60.77% of the companies in the same industry.
| 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.
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
The Earnings Per Share is expected to grow by 4.26% on average over the next years.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y-10.46%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
EPS Next 5YN/A
Revenue Next Year-3.09%
Revenue Next 2Y0.92%
Revenue Next 3Y2.34%
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 13.08.
87.69% of the companies in the same industry are more expensive than TNC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TNC to the average of the S&P500 Index (26.15), we can say TNC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 10.93, the valuation of TNC can be described as reasonable.
Based on the Price/Forward Earnings ratio, TNC is valued cheaper than 90.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. TNC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 10.93 |
4.2 Price Multiples
78.46% of the companies in the same industry are more expensive than TNC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TNC is valued a bit cheaper than 63.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.89 | ||
| EV/EBITDA | 9.89 |
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 2Y1.06%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.79%. 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 1.97. TNC pays more dividend than 80.77% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, TNC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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
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 2Y1.06%
EPS Next 3Y4.26%
73.13
-0.33 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.06%
Inst Owner Change-1.88%
Ins Owners1.37%
Ins Owner Change-0.59%
Market Cap1.35B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target112.2 (53.43%)
Short Float %2.85%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)-0.9%
PT rev (3m)-8.33%
EPS NQ rev (1m)2.21%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-2.83%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 10.93 | ||
| P/S | 1.09 | ||
| P/FCF | 21.89 | ||
| P/OCF | 15.3 | ||
| P/B | 2.11 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)5.59
EY7.64%
EPS(NY)6.69
Fwd EY9.15%
FCF(TTM)3.34
FCFY4.57%
OCF(TTM)4.78
OCFY6.54%
SpS67.18
BVpS34.7
TBVpS20.4
PEG (NY)N/A
PEG (5Y)0.74
Graham Number66.06
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 | 3.58 |
F-Score4
WACC9.45%
ROIC/WACC0.86
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-10.46%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.96%
Revenue Next Year-3.09%
Revenue Next 2Y0.92%
Revenue Next 3Y2.34%
Revenue Next 5Y3.86%
EBIT growth 1Y-29.45%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year42.17%
EBIT Next 3YN/A
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 13.08 and the Price/Book (PB) ratio is 2.11.
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%.