TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
76.43 USD
-1.23 (-1.58%)
76.43 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
- 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
- With a Return On Assets value of 4.36%, TNC perfoms like the industry average, outperforming 56.06% 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 58.33% of its industry peers.
- TNC's Return On Invested Capital of 8.14% is fine compared to the rest of the industry. TNC outperforms 61.36% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TNC is in line with the industry average of 10.24%.
| 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.
- TNC's Profit Margin has improved in the last couple of years.
- 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.
- In the last couple of years the Operating Margin of TNC has grown nicely.
- 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
- 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
- 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.
- TNC has a Altman-Z score of 3.62. This is in the better half of the industry: TNC outperforms 60.61% of its industry peers.
- 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 (3.87) which is comparable to the rest of the industry.
- 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 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.62 |
ROIC/WACC0.84
WACC9.72%
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 53.79% of the companies in the same industry.
- TNC has a Quick Ratio of 1.39. This is a normal value and indicates that TNC is financially healthy and should not expect problems in meeting 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.
- 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
- TNC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.36% yearly.
- TNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
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
- 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.
- 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
- The Price/Earnings ratio is 13.67, which indicates a correct valuation of TNC.
- Based on the Price/Earnings ratio, TNC is valued cheaper than 90.91% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, TNC is valued a bit cheaper.
- A Price/Forward Earnings ratio of 11.35 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 94.70% of the companies listed in the same industry.
- TNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 11.35 |
4.2 Price Multiples
- TNC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TNC is cheaper than 84.09% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TNC is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.46 | ||
| 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)0.77
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.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.82, TNC has a dividend comparable with the average S&P500 company.
| 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 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
- TNC pays out 39.96% of its income as dividend. This is a 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 2Y1.39%
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.