TENNANT CO (TNC) Stock Fundamental Analysis
USA - NYSE:TNC - US8803451033 - Common Stock
73.99 USD
+1.1 (+1.51%)
73.99 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TNC. TNC was compared to 130 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 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.
TNC had positive earnings in each of the past 5 years.
TNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.36%, TNC perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
TNC has a Return On Equity of 8.55%. This is comparable to the rest of the industry: TNC outperforms 53.85% of its industry peers.
The Return On Invested Capital of TNC (8.14%) is comparable to the rest of the 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 10.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 8.55% | ||
| ROIC | 8.14% |
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 4.42%, TNC is in line with its industry, outperforming 49.23% 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 of 7.61%. This is comparable to the rest of the industry: TNC outperforms 47.69% of 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 41.88%, TNC is in the better half of the industry, outperforming 77.69% 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 | 7.61% | ||
| PM (TTM) | 4.42% | ||
| GM | 41.88% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TNC 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
TNC has an Altman-Z score of 3.58. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
TNC's Altman-Z score of 3.58 is fine compared to the rest of the industry. TNC outperforms 63.85% of its industry peers.
The Debt to FCF ratio of TNC is 3.87, which is a good value as it means it would take TNC, 3.87 years of fcf income to pay off all of its debts.
TNC has a better Debt to FCF ratio (3.87) than 60.77% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that TNC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, TNC perfoms like the industry average, outperforming 59.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.85
WACC9.63%
2.3 Liquidity
TNC has a Current Ratio of 2.13. This indicates that TNC is financially healthy and has no problem in meeting its short term obligations.
TNC has a Current ratio of 2.13. This is comparable to the rest of the industry: TNC outperforms 53.85% of its industry peers.
TNC has a Quick Ratio of 1.39. This is a normal value and indicates that TNC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.39, TNC is in line with its industry, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The earnings per share for TNC have decreased strongly by -19.57% in the last year.
TNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
TNC shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
TNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.
EPS 1Y (TTM)-19.57%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%5.04%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.96%
3.2 Future
The Earnings Per Share is expected to grow by 4.26% on average over the next years.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y-10.46%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
EPS Next 5YN/A
Revenue Next Year-3.09%
Revenue Next 2Y0.92%
Revenue Next 3Y2.34%
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.
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
Based on the Price/Earnings ratio of 13.24, the valuation of TNC can be described as correct.
TNC's Price/Earnings ratio is rather cheap when compared to the industry. TNC is cheaper than 87.69% of the companies in the same industry.
TNC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 11.06, the valuation of TNC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TNC is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
TNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNC is valued a bit cheaper than the industry average as 76.15% of the companies are valued more expensively.
TNC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TNC is cheaper than 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.15 | ||
| EV/EBITDA | 9.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y1.06%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
TNC has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 1.86, TNC pays a bit more dividend than its industry peers.
TNC's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 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
39.96% 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.
DP39.96%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
73.99
+1.1 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.06%
Inst Owner Change-0.66%
Ins Owners1.37%
Ins Owner Change-0.59%
Market Cap1.37B
Revenue(TTM)1.24B
Net Income(TTM)54.80M
Analysts85
Price Target110.93 (49.93%)
Short Float %2.87%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.15
Dividend Growth(5Y)5.49%
DP39.96%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.67%
Min EPS beat(2)-9.49%
Max EPS beat(2)-3.84%
EPS beat(4)1
Avg EPS beat(4)-4.67%
Min EPS beat(4)-14.92%
Max EPS beat(4)9.58%
EPS beat(8)4
Avg EPS beat(8)7.63%
EPS beat(12)8
Avg EPS beat(12)18.86%
EPS beat(16)10
Avg EPS beat(16)13.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)-0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)0.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)1%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)-2.03%
PT rev (3m)-9.37%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 11.06 | ||
| P/S | 1.1 | ||
| P/FCF | 22.15 | ||
| P/OCF | 15.48 | ||
| P/B | 2.13 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 9.91 |
EPS(TTM)5.59
EY7.56%
EPS(NY)6.69
Fwd EY9.04%
FCF(TTM)3.34
FCFY4.51%
OCF(TTM)4.78
OCFY6.46%
SpS67.18
BVpS34.7
TBVpS20.4
PEG (NY)N/A
PEG (5Y)0.74
Graham Number66.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 8.55% | ||
| ROCE | 9.68% | ||
| ROIC | 8.14% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 12.99% | ||
| OM | 7.61% | ||
| PM (TTM) | 4.42% | ||
| GM | 41.88% | ||
| FCFM | 4.97% |
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%
ROICexgc growth 3Y-3.55%
ROICexgc 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-Score4
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 46.26% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 8.35 | ||
| Cash Conversion | 58.13% | ||
| Profit Quality | 112.59% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 3.58 |
F-Score4
WACC9.63%
ROIC/WACC0.85
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)-19.57%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%5.04%
EPS Next Y-10.46%
EPS Next 2Y1.06%
EPS Next 3Y4.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-3.96%
Revenue Next Year-3.09%
Revenue Next 2Y0.92%
Revenue Next 3Y2.34%
Revenue Next 5Y3.86%
EBIT growth 1Y-29.45%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year42.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.44%
FCF growth 3Y11.3%
FCF growth 5Y15.83%
OCF growth 1Y-36.15%
OCF growth 3Y8.93%
OCF growth 5Y4.52%
TENNANT CO / TNC FAQ
What is the ChartMill fundamental rating of TENNANT CO (TNC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TNC.
What is the valuation status for TNC stock?
ChartMill assigns a valuation rating of 5 / 10 to TENNANT CO (TNC). This can be considered as Fairly Valued.
How profitable is TENNANT CO (TNC) stock?
TENNANT CO (TNC) has a profitability rating of 5 / 10.
What is the valuation of TENNANT CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TENNANT CO (TNC) is 13.24 and the Price/Book (PB) ratio is 2.13.
Can you provide the dividend sustainability for TNC stock?
The dividend rating of TENNANT CO (TNC) is 5 / 10 and the dividend payout ratio is 39.96%.