TENNANT CO (TNC) Stock Fundamental Analysis
USA - NYSE:TNC - US8803451033 - Common Stock
73.54 USD
-0.45 (-0.61%)
73.54 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 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
TNC had positive earnings in the past year.
In the past year TNC had a positive cash flow from operations.
In the past 5 years TNC has always been profitable.
TNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TNC's Return On Assets of 4.36% is in line compared to the rest of the industry. TNC outperforms 52.31% of its industry peers.
TNC has a Return On Equity (8.55%) which is comparable to the rest of the industry.
TNC has a Return On Invested Capital (8.14%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TNC is in line with the industry average of 10.28%.
| 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
The Profit Margin of TNC (4.42%) is comparable to the rest of the industry.
TNC's Profit Margin has improved in the last couple of years.
TNC has a Operating Margin of 7.61%. This is comparable to the rest of the industry: TNC outperforms 47.69% of its industry peers.
In the last couple of years the Operating Margin of TNC has grown nicely.
TNC's Gross Margin of 41.88% is fine compared to the rest of the industry. TNC outperforms 77.69% of its industry peers.
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
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.
Compared to 5 years ago, TNC has more shares outstanding
Compared to 1 year ago, TNC has an improved debt to assets ratio.
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 63.85% 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 has a Debt to FCF ratio of 3.87. This is in the better half of the industry: TNC outperforms 60.77% 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.
Looking at the Debt to Equity ratio, with a value of 0.37, TNC is in line with its industry, outperforming 59.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.85
WACC9.57%
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 (2.13) which is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that TNC should not have too much problems paying its short term obligations.
TNC has a Quick ratio of 1.39. This is comparable to the rest of the industry: TNC outperforms 58.46% of its industry peers.
| 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%.
Measured over the past years, TNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
Looking at the last year, TNC shows a decrease in Revenue. The Revenue has decreased by -2.24% in the last 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 4.26% 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
With a Price/Earnings ratio of 13.16, TNC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of TNC indicates a rather cheap valuation: TNC is cheaper than 87.69% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. TNC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.99 indicates a reasonable valuation of TNC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TNC indicates a rather cheap valuation: TNC is cheaper than 90.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.57. TNC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
TNC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TNC is cheaper than 76.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TNC is valued a bit cheaper than 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 9.91 |
4.3 Compensation for Growth
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 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.86, TNC pays a bit more dividend than its industry peers.
TNC's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
TNC pays out 39.96% of its income as dividend. This is a sustainable payout ratio.
TNC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.96%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
73.54
-0.45 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.06%
Inst Owner Change-0.66%
Ins Owners1.37%
Ins Owner Change-0.59%
Market Cap1.36B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target110.93 (50.84%)
Short Float %2.87%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)-2.03%
PT rev (3m)-9.37%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 10.99 | ||
| P/S | 1.09 | ||
| P/FCF | 22.01 | ||
| P/OCF | 15.38 | ||
| P/B | 2.12 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 9.91 |
EPS(TTM)5.59
EY7.6%
EPS(NY)6.69
Fwd EY9.1%
FCF(TTM)3.34
FCFY4.54%
OCF(TTM)4.78
OCFY6.5%
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
WACC9.57%
ROIC/WACC0.85
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 5 / 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 5 / 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 13.16 and the Price/Book (PB) ratio is 2.12.
Can you provide the dividend sustainability for TNC stock?
The dividend rating of TENNANT CO (TNC) is 5 / 10 and the dividend payout ratio is 39.96%.