TENNANT CO (TNC) Stock Fundamental Analysis
USA - NYSE:TNC - US8803451033 - Common Stock
81.82 USD
+0.49 (+0.6%)
81.82 USD
0 (0%)
Taking everything into account, TNC scores 5 out of 10 in our fundamental rating. TNC was compared to 129 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 on the other hand it scores bad on growth.
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
With a Return On Assets value of 4.89%, TNC perfoms like the industry average, outperforming 54.26% of the companies in the same industry.
TNC has a Return On Equity of 9.31%. This is comparable to the rest of the industry: TNC outperforms 54.26% of its industry peers.
With a decent Return On Invested Capital value of 8.83%, TNC is doing good in the industry, outperforming 61.24% 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 10.00%.
| 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 (4.84%) which is in line with its industry peers.
TNC's Profit Margin has improved in the last couple of years.
TNC has a Operating Margin (8.09%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TNC has grown nicely.
Looking at the Gross Margin, with a value of 41.81%, TNC is in the better half of the industry, outperforming 78.29% 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 | 8.09% | ||
| 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
TNC has an Altman-Z score of 3.81. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TNC (3.81) is better than 67.44% 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.
TNC has a Debt to FCF ratio of 3.25. This is in the better half of the industry: TNC outperforms 67.44% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that TNC is not too dependend on debt financing.
TNC has a better Debt to Equity ratio (0.33) than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.89
WACC9.88%
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 has a Current ratio (2.09) which is in line with 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.
TNC has a Quick ratio (1.38) which is comparable to the rest of the 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.
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.
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 grow by 0.11% on average over the next years.
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
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.
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
The Price/Earnings ratio is 14.82, which indicates a correct valuation of TNC.
Based on the Price/Earnings ratio, TNC is valued cheaper than 83.72% of the companies in the same industry.
TNC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
TNC is valuated correctly with a Price/Forward Earnings ratio of 12.46.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TNC indicates a rather cheap valuation: TNC is cheaper than 89.92% 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 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
79.07% of the companies in the same industry are more expensive than TNC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TNC is valued a bit cheaper than the industry average as 62.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.97 | ||
| EV/EBITDA | 10.36 |
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)0.83
EPS Next 2Y0.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, TNC has a reasonable but not impressive dividend return.
TNC's Dividend Yield is a higher than the industry average which is at 1.79.
Compared to the average S&P500 Dividend Yield of 2.41, TNC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 2Y0.11%
EPS Next 3YN/A
81.82
+0.49 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.06%
Inst Owner Change-0.61%
Ins Owners1.37%
Ins Owner Change1.46%
Market Cap1.51B
Analysts85.71
Price Target113.22 (38.38%)
Short Float %2.71%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.28%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 12.46 | ||
| P/S | 1.21 | ||
| P/FCF | 22.97 | ||
| P/OCF | 16.74 | ||
| P/B | 2.32 | ||
| P/tB | 3.91 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)5.52
EY6.75%
EPS(NY)6.57
Fwd EY8.02%
FCF(TTM)3.56
FCFY4.35%
OCF(TTM)4.89
OCFY5.98%
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 | 3.81 |
F-Score5
WACC9.88%
ROIC/WACC0.89
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 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%