TENNANT CO (TNC) Stock Fundamental Analysis
USA - NYSE:TNC - US8803451033 - Common Stock
81.03 USD
-2.09 (-2.51%)
81.03 USD
0 (0%)
Overall TNC gets a fundamental rating of 5 out of 10. We evaluated TNC against 128 industry peers in the Machinery industry. While TNC has a great health rating, its profitability is only average at the moment. TNC is valued correctly, 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
Looking at the Return On Assets, with a value of 4.89%, TNC is in line with its industry, outperforming 53.91% of the companies in the same industry.
TNC has a Return On Equity (9.31%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 8.83%, TNC is doing good in the industry, outperforming 60.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TNC is in line with the industry average of 10.02%.
| 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
Looking at the Profit Margin, with a value of 4.84%, TNC is in line with its industry, outperforming 48.44% of the companies in the same industry.
In the last couple of years the Profit Margin of TNC has grown nicely.
TNC has a Operating Margin (8.09%) which is comparable to the rest of the industry.
TNC's Operating Margin has improved in the last couple of years.
TNC's Gross Margin of 41.81% is fine compared to the rest of the industry. TNC outperforms 77.34% of its industry peers.
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
TNC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TNC has about the same amount of shares outstanding.
Compared to 5 years ago, TNC has more shares outstanding
TNC has a better debt/assets ratio than last year.
2.2 Solvency
TNC has an Altman-Z score of 3.80. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TNC (3.80) is better than 65.63% 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 66.41% of its industry peers.
TNC has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
TNC's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. TNC outperforms 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 3.8 |
ROIC/WACC0.88
WACC9.98%
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.
Looking at the Current ratio, with a value of 2.09, TNC is in line with its industry, outperforming 53.13% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that TNC should not have too much problems paying its short term obligations.
TNC's Quick ratio of 1.38 is fine compared to the rest of the industry. TNC outperforms 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
TNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
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 -0.38% 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)-20%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%-18.58%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.75%
3.2 Future
TNC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.11% 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-11.18%
EPS Next 2Y0.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.86%
Revenue Next 2Y0.96%
Revenue Next 3Y3.29%
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.
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
TNC is valuated correctly with a Price/Earnings ratio of 14.68.
84.38% of the companies in the same industry are more expensive than TNC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. TNC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.34, which indicates a correct 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 88.28% of the companies listed in the same industry.
TNC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNC is valued a bit cheaper than 78.13% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TNC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.75 | ||
| EV/EBITDA | 10.33 |
4.3 Compensation for Growth
The decent profitability rating of TNC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y0.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.42%.
Compared to an average industry Dividend Yield of 1.74, TNC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.42, TNC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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
35.91% 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.
DP35.91%
EPS Next 2Y0.11%
EPS Next 3YN/A
81.03
-2.09 (-2.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.92%
Inst Owner Change-0.61%
Ins Owners1.38%
Ins Owner Change1.46%
Market Cap1.50B
Analysts85.71
Price Target113.22 (39.73%)
Short Float %2.58%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)-7.5%
PT rev (3m)-7.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.34%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)2.4%
Revenue NQ rev (3m)4.28%
Revenue NY rev (1m)2.78%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 12.34 | ||
| P/S | 1.19 | ||
| P/FCF | 22.75 | ||
| P/OCF | 16.57 | ||
| P/B | 2.3 | ||
| P/tB | 3.87 | ||
| EV/EBITDA | 10.33 |
EPS(TTM)5.52
EY6.81%
EPS(NY)6.57
Fwd EY8.1%
FCF(TTM)3.56
FCFY4.4%
OCF(TTM)4.89
OCFY6.03%
SpS67.86
BVpS35.3
TBVpS20.93
PEG (NY)N/A
PEG (5Y)0.83
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%
ROICexcg growth 3Y-3.55%
ROICexcg 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 | 3.8 |
F-Score5
WACC9.98%
ROIC/WACC0.88
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)-20%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%-18.58%
EPS Next Y-11.18%
EPS Next 2Y0.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.75%
Revenue Next Year-2.86%
Revenue Next 2Y0.96%
Revenue Next 3Y3.29%
Revenue Next 5Y3.86%
EBIT growth 1Y-26.47%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year41.1%
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%