TENNANT CO (TNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNC - US8803451033 - Common Stock
74.27 USD
+0.3 (+0.41%)
74.27 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TNC. TNC was compared to 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 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.
In the past 5 years TNC has always been profitable.
Of the past 5 years TNC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.36%, TNC is in line with its industry, outperforming 53.85% of the companies in the same industry.
TNC has a Return On Equity (8.55%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 8.14%, TNC is doing good in the industry, outperforming 60.77% of the companies in the same industry.
TNC had an Average Return On Invested Capital over the past 3 years of 11.55%. This is in line with the industry average of 10.39%.
| 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 51.54% of its industry peers.
TNC's Profit Margin has improved in the last couple of years.
TNC has a Operating Margin (7.61%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TNC has grown nicely.
With a decent Gross Margin value of 41.88%, TNC is doing good in the industry, outperforming 77.69% 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
TNC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TNC remains at a similar level compared to 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 3.56. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TNC (3.56) is better than 63.08% of its industry peers.
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.
TNC has a better Debt to FCF ratio (3.87) than 61.54% 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.
TNC has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.86
WACC9.51%
2.3 Liquidity
A Current Ratio of 2.13 indicates that TNC has no problem at all paying its short term obligations.
TNC has a Current ratio (2.13) which is comparable to the rest of the 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.
The Quick ratio of TNC (1.39) is better than 60.77% 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.
TNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
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
Based on estimates for the next years, TNC will show a small growth in Earnings Per Share. The EPS will grow by 4.26% on average per year.
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
Based on the Price/Earnings ratio of 13.29, the valuation of TNC can be described as correct.
88.46% 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 (26.41), we can say TNC is valued slightly cheaper.
TNC is valuated reasonably with a Price/Forward Earnings ratio of 11.10.
Based on the Price/Forward Earnings ratio, TNC is valued cheaper than 90.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.40. TNC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
TNC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TNC is cheaper than 80.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TNC is valued a bit cheaper than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.82 | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
The decent profitability rating of TNC 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 1.68%, 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 1.90. TNC pays more dividend than 80.77% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, TNC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 2Y1.06%
EPS Next 3Y4.26%
74.27
+0.3 (+0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.06%
Inst Owner Change-1.9%
Ins Owners1.37%
Ins Owner Change-0.59%
Market Cap1.35B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target112.2 (51.07%)
Short Float %3.09%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)-0.9%
PT rev (3m)-8.33%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-1.93%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 11.1 | ||
| P/S | 1.09 | ||
| P/FCF | 21.82 | ||
| P/OCF | 15.25 | ||
| P/B | 2.1 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 9.75 |
EPS(TTM)5.59
EY7.53%
EPS(NY)6.69
Fwd EY9.01%
FCF(TTM)3.4
FCFY4.58%
OCF(TTM)4.87
OCFY6.56%
SpS68.44
BVpS35.35
TBVpS20.78
PEG (NY)N/A
PEG (5Y)0.75
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 | 3.56 |
F-Score4
WACC9.51%
ROIC/WACC0.86
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 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 13.29 and the Price/Book (PB) ratio is 2.1.
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%.