TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
75.53 USD
-0.9 (-1.18%)
75.53 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 an average financial health and profitability rating. TNC has a valuation in line with the averages, 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's Return On Assets of 4.36% is in line compared to the rest of the industry. TNC outperforms 56.06% of its industry peers.
- With a Return On Equity value of 8.55%, TNC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- With a decent Return On Invested Capital value of 8.14%, TNC is doing good in the industry, outperforming 61.36% 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 10.24%.
| 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
- TNC's Profit Margin of 4.42% is in line compared to the rest of the industry. TNC outperforms 51.52% of its industry peers.
- In the last couple of years the Profit Margin of TNC has grown nicely.
- Looking at the Operating Margin, with a value of 7.61%, TNC is in line with its industry, outperforming 49.24% of the companies in the same industry.
- TNC's Operating Margin has improved in the last couple of years.
- TNC has a better Gross Margin (41.88%) than 79.55% 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.
- TNC has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for TNC has been increased compared to 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 3.59. 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 3.59, TNC is in the better half of 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.
- Looking at the Debt to FCF ratio, with a value of 3.87, TNC is in line with its industry, outperforming 59.85% of the companies in the same industry.
- TNC has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 3.59 |
ROIC/WACC0.84
WACC9.7%
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.
- A Quick Ratio of 1.39 indicates that TNC should not have too much problems paying its short term obligations.
- TNC's Quick ratio of 1.39 is fine compared to the rest of the industry. TNC outperforms 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.
- The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
- Looking at the last year, TNC shows a decrease in Revenue. The Revenue has decreased by -2.24% in the last year.
- The Revenue has been growing slightly by 2.49% on average over the past years.
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
- 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 13.51.
- TNC's Price/Earnings ratio is rather cheap when compared to the industry. TNC is cheaper than 92.42% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, TNC is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.22 indicates a reasonable valuation of TNC.
- Based on the Price/Forward Earnings ratio, TNC is valued cheaper than 95.45% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, TNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TNC is valued cheaper than 84.09% of the companies in the same industry.
- 64.39% 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 | 22.19 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
- The decent profitability rating of TNC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y1.39%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.57%, TNC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.01, TNC pays a better dividend. On top of this TNC pays more dividend than 83.33% of the companies listed in the same industry.
- TNC's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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 paid a dividend for at least 10 years, which is 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.