TENNANT CO (TNC) Stock Fundamental Analysis
NYSE:TNC - New York Stock Exchange, Inc. - US8803451033 - Common Stock - Currency: USD
TNC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 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.
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
TNC has a Return On Assets of 7.03%. This is in the better half of the industry: TNC outperforms 66.41% of its industry peers.
TNC's Return On Equity of 13.48% is fine compared to the rest of the industry. TNC outperforms 64.06% of its industry peers.
With a decent Return On Invested Capital value of 11.49%, TNC is doing good in the industry, outperforming 75.78% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TNC is in line with the industry average of 10.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 13.48% | ||
| ROIC | 11.49% |
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 (6.51%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TNC has grown nicely.
TNC's Operating Margin of 9.53% is in line compared to the rest of the industry. TNC outperforms 50.78% of its industry peers.
In the last couple of years the Operating Margin of TNC has grown nicely.
TNC's Gross Margin of 42.75% is fine compared to the rest of the industry. TNC outperforms 78.91% of its industry peers.
TNC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.53% | ||
| PM (TTM) | 6.51% | ||
| GM | 42.75% |
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.
Compared to 1 year ago, TNC has about the same amount of shares outstanding.
Compared to 5 years ago, TNC has more shares outstanding
TNC has a better debt/assets ratio than last year.
2.2 Solvency
TNC has an Altman-Z score of 3.80. This indicates that TNC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.80, TNC is doing good in the industry, outperforming 65.63% of the companies in the same industry.
The Debt to FCF ratio of TNC is 2.90, which is a good value as it means it would take TNC, 2.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.90, TNC is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
TNC has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
TNC has a better Debt to Equity ratio (0.32) than 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.13
WACC10.13%
2.3 Liquidity
A Current Ratio of 1.97 indicates that TNC should not have too much problems paying its short term obligations.
TNC has a Current ratio (1.97) which is comparable to the rest of the industry.
A Quick Ratio of 1.34 indicates that TNC should not have too much problems paying its short term obligations.
The Quick ratio of TNC (1.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
TNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.44%.
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 small growth in Revenue. The Revenue has grown by 3.47% 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)-15.44%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%-38.12%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-6.75%
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 2.07% on average per year.
Based on estimates for the next years, TNC will show a small growth in Revenue. The Revenue will grow by 0.69% on average per year.
EPS Next Y-8.56%
EPS Next 2Y2.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.01%
Revenue Next 2Y0.69%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.20, which indicates a correct valuation of TNC.
Compared to the rest of the industry, the Price/Earnings ratio of TNC indicates a rather cheap valuation: TNC is cheaper than 87.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TNC to the average of the S&P500 Index (28.22), we can say TNC is valued rather cheaply.
TNC is valuated reasonably with a Price/Forward Earnings ratio of 10.47.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TNC indicates a rather cheap valuation: TNC is cheaper than 88.28% 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 (20.86), we can say TNC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 10.47 |
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 78.91% of the companies listed in the same industry.
TNC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TNC is cheaper than 64.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.54 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
The decent profitability rating of TNC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y2.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, TNC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.05, TNC pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, TNC is paying slightly less dividend.
| 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 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
25.57% 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.
DP25.57%
EPS Next 2Y2.07%
EPS Next 3YN/A
71.48
+2.02 (+2.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.05%
Inst Owner Change-0.09%
Ins Owners1.07%
Ins Owner Change9.56%
Market Cap1.34B
Analysts85.71
Price Target131.92 (84.56%)
Short Float %2.71%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.15
Dividend Growth(5Y)5.49%
DP25.57%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.74%
Min EPS beat(2)-4.09%
Max EPS beat(2)9.58%
EPS beat(4)3
Avg EPS beat(4)9.41%
Min EPS beat(4)-4.09%
Max EPS beat(4)26.5%
EPS beat(8)7
Avg EPS beat(8)29.44%
EPS beat(12)9
Avg EPS beat(12)19.3%
EPS beat(16)13
Avg EPS beat(16)26.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)0.74%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)0.74%
Revenue beat(8)5
Avg Revenue beat(8)2.43%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)8
Avg Revenue beat(16)0.29%
PT rev (1m)0%
PT rev (3m)-0.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.78%
Revenue NY rev (1m)-2.33%
Revenue NY rev (3m)-5.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 10.47 | ||
| P/S | 1.04 | ||
| P/FCF | 19.54 | ||
| P/OCF | 14.99 | ||
| P/B | 2.17 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)5.86
EY8.2%
EPS(NY)6.82
Fwd EY9.55%
FCF(TTM)3.66
FCFY5.12%
OCF(TTM)4.77
OCFY6.67%
SpS68.41
BVpS33
TBVpS20.02
PEG (NY)N/A
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 13.48% | ||
| ROCE | 13.65% | ||
| ROIC | 11.49% | ||
| ROICexc | 12.93% | ||
| ROICexgc | 18.63% | ||
| OM | 9.53% | ||
| PM (TTM) | 6.51% | ||
| GM | 42.75% | ||
| FCFM | 5.35% |
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 Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 37.93% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 9.01 | ||
| Cash Conversion | 50.48% | ||
| Profit Quality | 82.2% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.8 |
F-Score5
WACC10.13%
ROIC/WACC1.13
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)-15.44%
EPS 3Y14.27%
EPS 5Y17.78%
EPS Q2Q%-38.12%
EPS Next Y-8.56%
EPS Next 2Y2.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.47%
Revenue growth 3Y5.66%
Revenue growth 5Y2.49%
Sales Q2Q%-6.75%
Revenue Next Year-3.01%
Revenue Next 2Y0.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-14.03%
EBIT growth 3Y11.69%
EBIT growth 5Y9.02%
EBIT Next Year46.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-58.45%
FCF growth 3Y11.3%
FCF growth 5Y15.83%
OCF growth 1Y-52.39%
OCF growth 3Y8.93%
OCF growth 5Y4.52%