TENNANT CO (TNC)
US8803451033 - Common Stock
Overall TNC gets a fundamental rating of 6 out of 10. We evaluated TNC against 132 industry peers in the Machinery industry. TNC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TNC has a decent growth rate and is not valued too expensively. These ratings would make TNC suitable for quality investing!
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.
TNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.86%, TNC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
TNC has a better Return On Equity (18.48%) than 78.46% of its industry peers.
TNC has a better Return On Invested Capital (13.82%) than 81.54% 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 10.80%.
The last Return On Invested Capital (13.82%) for TNC is above the 3 year average (11.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.86% | ||
| ROE | 18.48% | ||
| ROIC | 13.82% |
ROA(3y)7.35%
ROA(5y)5.9%
ROE(3y)16.01%
ROE(5y)13.81%
ROIC(3y)11.15%
ROIC(5y)9.85%
1.3 Margins
Looking at the Profit Margin, with a value of 9.10%, TNC is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
In the last couple of years the Profit Margin of TNC has grown nicely.
The Operating Margin of TNC (11.48%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TNC has grown nicely.
With an excellent Gross Margin value of 43.25%, TNC belongs to the best of the industry, outperforming 86.92% 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 | 11.48% | ||
| PM (TTM) | 9.1% | ||
| GM | 43.25% |
OM growth 3Y18.38%
OM growth 5Y17.17%
PM growth 3Y37.78%
PM growth 5Y24.25%
GM growth 3Y1.35%
GM growth 5Y1.4%
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.
The number of shares outstanding for TNC has been increased 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 4.75. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
TNC's Altman-Z score of 4.75 is fine compared to the rest of the industry. TNC outperforms 75.38% of its industry peers.
TNC has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
TNC has a better Debt to FCF ratio (1.52) than 83.08% of its industry peers.
TNC has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.34, TNC is doing good in the industry, outperforming 60.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.49
WACC9.3%
2.3 Liquidity
A Current Ratio of 2.15 indicates that TNC has no problem at all paying its short term obligations.
TNC has a Current ratio (2.15) which is in line with its industry peers.
A Quick Ratio of 1.46 indicates that TNC should not have too much problems paying its short term obligations.
TNC's Quick ratio of 1.46 is fine compared to the rest of the industry. TNC outperforms 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
TNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.78%, which is quite impressive.
The Earnings Per Share has been growing by 24.80% on average over the past years. This is a very strong growth
Looking at the last year, TNC shows a quite strong growth in Revenue. The Revenue has grown by 9.55% in the last year.
The Revenue has been growing slightly by 2.05% on average over the past years.
EPS 1Y (TTM)43.78%
EPS 3Y31.19%
EPS 5Y24.8%
EPS growth Q2Q24.83%
Revenue 1Y (TTM)9.55%
Revenue growth 3Y7.5%
Revenue growth 5Y2.05%
Revenue growth Q2Q1.7%
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 2.58% on average per year.
Based on estimates for the next years, TNC will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y-0.74%
EPS Next 2Y2.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.67%
Revenue Next 2Y3.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 15.28, TNC is valued correctly.
77.69% 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 28.91. TNC is valued slightly cheaper when compared to this.
TNC is valuated correctly with a Price/Forward Earnings ratio of 15.32.
Based on the Price/Forward Earnings ratio, TNC is valued a bit cheaper than 74.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.51, TNC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 15.32 |
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 68.46% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNC indicates a rather cheap valuation: TNC is cheaper than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 10.91 |
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)0.62
EPS Next 2Y2.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.66, TNC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, TNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of TNC has a limited annual growth rate of 4.94%.
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)4.94%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
TNC pays out 18.05% of its income as dividend. This is a sustainable payout ratio.
TNC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.05%
EPS Next 2Y2.58%
EPS Next 3YN/A
TENNANT CO
NYSE:TNC (5/15/2024, 7:12:45 PM)
After market: 105.9 0 (0%)105.9
+0.15 (+0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 15.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.86% | ||
| ROE | 18.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.48% | ||
| PM (TTM) | 9.1% | ||
| GM | 43.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)43.78%
EPS 3Y31.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.55%
Revenue growth 3Y7.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y