TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
77.61 USD
+1.71 (+2.25%)
77.61 USD
0 (0%)
Overall TNC gets a fundamental rating of 5 out of 10. We evaluated TNC against 130 industry peers in the Machinery industry. TNC has only an average score on both its financial health and profitability. 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.
In the past year TNC had a positive cash flow from operations.
Each year in the past 5 years TNC has 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 53.85% of the companies in the same industry.
The Return On Equity of TNC (8.55%) is comparable to the rest of the industry.
TNC's Return On Invested Capital of 8.14% is fine compared to the rest of the industry. TNC outperforms 60.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TNC is in line with the industry average of 10.46%.
| 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.
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 49.23% of its industry peers.
TNC's Operating Margin has improved in the last couple of years.
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.
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.
With a decent Altman-Z score value of 3.59, TNC is doing good in the industry, outperforming 62.31% 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.
With a decent Debt to FCF ratio value of 3.87, TNC is doing good in the industry, outperforming 60.77% 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.
With a Debt to Equity ratio value of 0.37, TNC perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.84
WACC9.64%
2.3 Liquidity
A Current Ratio of 2.13 indicates that TNC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.13, TNC is in line with its industry, outperforming 53.08% 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.
Looking at the Quick ratio, with a value of 1.39, TNC is in line with its industry, outperforming 60.00% 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
The Earnings Per Share is expected to grow by 4.36% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 13.88, TNC is valued correctly.
90.00% 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 (26.76), we can say TNC is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.53, which indicates a very decent valuation of TNC.
TNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNC is cheaper than 93.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TNC to the average of the S&P500 Index (23.96), we can say TNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than TNC, based on the Enterprise Value to EBITDA ratio.
63.85% 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 | 22.81 | ||
| EV/EBITDA | 9.98 |
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 1.67%.
TNC's Dividend Yield is rather good when compared to the industry average which is at 1.84. TNC pays more dividend than 81.54% of the companies in the same industry.
TNC's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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
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 2Y1.39%
EPS Next 3Y4.36%
77.61
+1.71 (+2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.55%
Inst Owner Change-1.9%
Ins Owners1.39%
Ins Owner Change-0.59%
Market Cap1.41B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target112.2 (44.57%)
Short Float %3.09%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)1.15%
PT rev (3m)-0.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)-1.5%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.53 | ||
| P/S | 1.13 | ||
| P/FCF | 22.81 | ||
| P/OCF | 15.94 | ||
| P/B | 2.2 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)5.59
EY7.2%
EPS(NY)6.73
Fwd EY8.68%
FCF(TTM)3.4
FCFY4.39%
OCF(TTM)4.87
OCFY6.28%
SpS68.44
BVpS35.35
TBVpS20.78
PEG (NY)N/A
PEG (5Y)0.78
Graham Number66.68
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 | 3.59 |
F-Score4
WACC9.64%
ROIC/WACC0.84
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-11.03%
EPS Next 2Y1.39%
EPS Next 3Y4.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.96%
Revenue Next Year-3.86%
Revenue Next 2Y0.77%
Revenue Next 3Y2.19%
Revenue Next 5Y3.86%
EBIT growth 1Y-29.45%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year42.39%
EBIT Next 3Y16.96%
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 13.88 and the Price/Book (PB) ratio is 2.2.
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%.