TENNANT CO (TNC) Stock Fundamental Analysis
NYSE:TNC - New York Stock Exchange, Inc. - US8803451033 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TNC. TNC was compared to 127 industry peers in the Machinery industry. TNC has an average financial health and profitability rating. 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.
TNC had a positive operating cash flow in the past year.
Each year in the past 5 years TNC has been profitable.
Of the past 5 years TNC 4 years had a positive operating cash flow.
1.2 Ratios
TNC has a Return On Assets (4.89%) which is in line with its industry peers.
TNC's Return On Equity of 9.31% is in line compared to the rest of the industry. TNC outperforms 54.33% of its industry peers.
The Return On Invested Capital of TNC (9.27%) is better than 64.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNC is in line with the industry average of 10.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 9.31% | ||
| ROIC | 9.27% |
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 (4.84%) which is comparable to the rest of the industry.
TNC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.50%, TNC perfoms like the industry average, outperforming 50.39% of the companies in the same industry.
TNC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 41.81%, TNC is doing good in the industry, outperforming 77.17% 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 | 8.5% | ||
| 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.
The number of shares outstanding for TNC remains at a similar level compared to 1 year ago.
The number of shares outstanding for TNC has been increased compared to 5 years ago.
The debt/assets ratio for TNC has been reduced compared to a year ago.
2.2 Solvency
TNC has an Altman-Z score of 3.82. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.82, TNC is in the better half of the industry, outperforming 64.57% of the companies in the same industry.
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.
TNC has a better Debt to FCF ratio (3.25) than 63.78% 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 has a Debt to Equity ratio (0.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 3.82 |
ROIC/WACC0.93
WACC9.95%
2.3 Liquidity
A Current Ratio of 2.09 indicates that TNC has no problem at all paying its short term obligations.
TNC's Current ratio of 2.09 is in line compared to the rest of the industry. TNC outperforms 52.76% of its industry peers.
A Quick Ratio of 1.38 indicates that TNC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.38, TNC is in line with its industry, outperforming 59.06% 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 -20.00% in the last year.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
The Revenue has decreased by -0.38% in the past year.
TNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.
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
The Earnings Per Share is expected to decrease by -0.58% on average over the next years.
The Revenue is expected to decrease by -0.74% on average over the next years.
EPS Next Y-10.64%
EPS Next 2Y-0.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.49%
Revenue Next 2Y-0.74%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.55, TNC is valued correctly.
Based on the Price/Earnings ratio, TNC is valued cheaply inside the industry as 82.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TNC is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.41, 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 83.46% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TNC to the average of the S&P500 Index (34.09), we can say TNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 12.41 |
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 77.95% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.77 | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
The decent profitability rating of TNC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-0.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.47%.
Compared to an average industry Dividend Yield of 1.91, TNC pays a bit more dividend than its industry peers.
TNC's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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
TNC pays out 35.91% of its income as dividend. This is a sustainable payout ratio.
DP35.91%
EPS Next 2Y-0.58%
EPS Next 3YN/A
80.34
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.92%
Inst Owner Change-0.68%
Ins Owners1.38%
Ins Owner Change11.38%
Market Cap1.50B
Analysts86.67
Price Target122.4 (52.35%)
Short Float %2.51%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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)0%
PT rev (3m)0.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.2 | ||
| P/FCF | 22.77 | ||
| P/OCF | 16.59 | ||
| P/B | 2.3 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 10.01 |
EPS(TTM)5.52
EY6.87%
EPS(NY)6.47
Fwd EY8.06%
FCF(TTM)3.53
FCFY4.39%
OCF(TTM)4.84
OCFY6.03%
SpS67.2
BVpS34.95
TBVpS20.72
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 9.31% | ||
| ROCE | 11.02% | ||
| ROIC | 9.27% | ||
| ROICexc | 10.11% | ||
| ROICexgc | 14.43% | ||
| OM | 8.5% | ||
| 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 | 1.31 | ||
| Cap/Depr | 43.36% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.4% | ||
| Profit Quality | 108.4% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.82 |
F-Score5
WACC9.95%
ROIC/WACC0.93
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-10.64%
EPS Next 2Y-0.58%
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-5.49%
Revenue Next 2Y-0.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-22.77%
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%