TENNANT CO (TNC) Stock Fundamental Analysis
USA - NYSE:TNC - US8803451033 - Common Stock
74.94 USD
+0.08 (+0.11%)
Overall TNC gets a fundamental rating of 6 out of 10. We evaluated TNC against 130 industry peers in the Machinery industry. Both the profitability and the financial health of TNC get a neutral evaluation. Nothing too spectacular is happening here. TNC has a correct valuation and a medium growth rate.
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.
TNC had positive earnings in each of the past 5 years.
TNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.89%, TNC perfoms like the industry average, outperforming 54.62% of the companies in the same industry.
TNC's Return On Equity of 9.31% is in line compared to the rest of the industry. TNC outperforms 54.62% of its industry peers.
TNC has a Return On Invested Capital of 8.83%. This is in the better half of the industry: TNC outperforms 62.31% 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 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 9.31% | ||
| ROIC | 8.83% |
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 of 4.84%. This is comparable to the rest of the industry: TNC outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of TNC has grown nicely.
TNC's Operating Margin of 8.09% is in line compared to the rest of the industry. TNC outperforms 49.23% of its industry peers.
In the last couple of years the Operating Margin of TNC has grown nicely.
With a decent Gross Margin value of 41.81%, TNC is doing good in the industry, outperforming 77.69% of the companies in the same industry.
TNC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.09% | ||
| PM (TTM) | 4.84% | ||
| GM | 41.81% |
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.
TNC has about the same amout of shares outstanding than it did 1 year ago.
TNC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TNC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.69 indicates that TNC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TNC (3.69) is better than 63.85% of its industry peers.
TNC has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as TNC would need 3.25 years to pay back of all of its debts.
The Debt to FCF ratio of TNC (3.25) is better than 66.92% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that TNC is not too dependend on debt financing.
The Debt to Equity ratio of TNC (0.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 3.69 |
ROIC/WACC0.92
WACC9.62%
2.3 Liquidity
TNC has a Current Ratio of 2.09. This indicates that TNC is financially healthy and has no problem in meeting its short term obligations.
TNC's Current ratio of 2.09 is in line compared to the rest of the industry. TNC outperforms 51.54% of its industry peers.
TNC has a Quick Ratio of 1.38. This is a normal value and indicates that TNC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.38, TNC is in line with its industry, outperforming 56.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for TNC have decreased strongly by -19.57% in the last year.
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.
TNC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.47%.
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)3.47%
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 4.26% yearly.
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-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 13.41, TNC is valued correctly.
Based on the Price/Earnings ratio, TNC is valued cheaper than 87.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.13. TNC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.20, 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 90.77% of the companies in the same industry.
TNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNC indicates a somewhat cheap valuation: TNC is cheaper than 78.46% of the companies listed in the same industry.
65.38% 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 | 21.04 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
TNC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y1.06%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.66%, TNC has a reasonable but not impressive dividend return.
TNC's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to the average S&P500 Dividend Yield of 2.39, TNC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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 35.91% 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.
DP35.91%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
NYSE:TNC (11/6/2025, 11:44:44 AM)
74.94
+0.08 (+0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.06%
Inst Owner Change-0.26%
Ins Owners1.37%
Ins Owner Change1.46%
Market Cap1.38B
Revenue(TTM)1.29B
Net Income(TTM)60.70M
Analysts85
Price Target110.93 (48.03%)
Short Float %2.87%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend1.15
Dividend Growth(5Y)5.49%
DP35.91%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.21%
Min EPS beat(2)-14.92%
Max EPS beat(2)-9.49%
EPS beat(4)1
Avg EPS beat(4)-4.73%
Min EPS beat(4)-14.92%
Max EPS beat(4)9.58%
EPS beat(8)5
Avg EPS beat(8)10.03%
EPS beat(12)8
Avg EPS beat(12)18.28%
EPS beat(16)11
Avg EPS beat(16)17.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)-0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)0.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)5
Avg Revenue beat(12)0.46%
Revenue beat(16)6
Avg Revenue beat(16)-0.44%
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%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.2 | ||
| P/S | 1.1 | ||
| P/FCF | 21.04 | ||
| P/OCF | 15.33 | ||
| P/B | 2.12 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)5.59
EY7.46%
EPS(NY)6.69
Fwd EY8.93%
FCF(TTM)3.56
FCFY4.75%
OCF(TTM)4.89
OCFY6.52%
SpS67.86
BVpS35.3
TBVpS20.93
PEG (NY)N/A
PEG (5Y)0.75
Graham Number66.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 9.31% | ||
| ROCE | 10.49% | ||
| ROIC | 8.83% | ||
| ROICexc | 9.63% | ||
| ROICexgc | 13.74% | ||
| OM | 8.09% | ||
| PM (TTM) | 4.84% | ||
| GM | 41.81% | ||
| FCFM | 5.25% |
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-Score5
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 43.36% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 8.52 | ||
| Cash Conversion | 57.19% | ||
| Profit Quality | 108.4% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.69 |
F-Score5
WACC9.62%
ROIC/WACC0.92
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)3.47%
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-26.47%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year42.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y55.19%
FCF growth 3Y11.3%
FCF growth 5Y15.83%
OCF growth 1Y31.44%
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 6 / 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 13.41 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 35.91%.