TENNANT CO (TNC) Stock Fundamental Analysis
NYSE:TNC - US8803451033 - Common Stock
82.94 USD
+0.37 (+0.45%)
82.94 USD
0 (0%)
TNC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. TNC has only an average score on both its financial health and profitability. 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
TNC had positive earnings in the past year.
In the past year TNC had a positive cash flow from operations.
TNC had positive earnings in each of the past 5 years.
Of the past 5 years TNC 4 years had a positive operating cash flow.
1.2 Ratios
TNC has a Return On Assets of 4.89%. This is comparable to the rest of the industry: TNC outperforms 54.26% of its industry peers.
TNC has a Return On Equity (9.31%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.83%, TNC is in the better half of the industry, outperforming 61.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TNC 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
With a Profit Margin value of 4.84%, TNC perfoms like the industry average, outperforming 48.84% 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 (8.09%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TNC has grown nicely.
TNC has a better Gross Margin (41.81%) than 77.52% 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.
TNC has about the same amout of shares outstanding than it did 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
An Altman-Z score of 3.84 indicates that TNC is not in any danger for bankruptcy at the moment.
TNC's Altman-Z score of 3.84 is fine compared to the rest of the industry. TNC outperforms 66.67% of its industry peers.
The Debt to FCF ratio of TNC is 3.25, which is a good value as it means it would take TNC, 3.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TNC (3.25) is better than 66.67% 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 61.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.86
WACC10.27%
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 comparable to the rest of the industry.
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.
With a Quick ratio value of 1.38, TNC perfoms like the industry average, outperforming 59.69% of the companies in the same industry.
| 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.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y-11.18%
EPS Next 2Y0.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.47%
Revenue Next 2Y0.65%
Revenue Next 3YN/A
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.
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
The Price/Earnings ratio is 15.03, which indicates a correct valuation of TNC.
Based on the Price/Earnings ratio, TNC is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TNC to the average of the S&P500 Index (27.06), we can say TNC is valued slightly cheaper.
TNC is valuated correctly with a Price/Forward Earnings ratio of 12.63.
TNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNC is cheaper than 87.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. TNC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 12.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNC is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
60.47% of the companies in the same industry are more expensive than TNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.28 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
The decent profitability rating of TNC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y0.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
TNC's Dividend Yield is a higher than the industry average which is at 1.78.
With a Dividend Yield of 1.43, TNC pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of TNC has a limited annual growth rate of 5.49%.
TNC has been paying a dividend for at least 10 years, so it has 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
35.91% 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.
DP35.91%
EPS Next 2Y0.11%
EPS Next 3YN/A
82.94
+0.37 (+0.45%)
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 Cap1.53B
Analysts85.71
Price Target113.22 (36.51%)
Short Float %2.58%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)0.34%
EPS NQ rev (3m)0.34%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)4.28%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)3.19%
Revenue NY rev (3m)3.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 12.63 | ||
| P/S | 1.22 | ||
| P/FCF | 23.28 | ||
| P/OCF | 16.96 | ||
| P/B | 2.35 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)5.52
EY6.66%
EPS(NY)6.57
Fwd EY7.92%
FCF(TTM)3.56
FCFY4.3%
OCF(TTM)4.89
OCFY5.89%
SpS67.86
BVpS35.3
TBVpS20.93
PEG (NY)N/A
PEG (5Y)0.85
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 | 3.84 |
F-Score5
WACC10.27%
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)-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-2.47%
Revenue Next 2Y0.65%
Revenue Next 3YN/A
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%