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Tenneco

NYSE:TEN
Snowflake Description

High growth potential and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TEN
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Automobiles
Company description

Tenneco Inc. designs, manufactures, and sells clean air, powertrain, and ride performance products and systems for light vehicle, commercial truck, off-highway, industrial, and aftermarket customers worldwide. The last earnings update was 29 days ago. More info.


Add to Portfolio Compare Print
  • Tenneco has significant price volatility in the past 3 months.
TEN Share Price and Events
7 Day Returns
5.7%
NYSE:TEN
3.9%
US Auto Components
0.4%
US Market
1 Year Returns
-51.7%
NYSE:TEN
-20%
US Auto Components
6.8%
US Market
TEN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tenneco (TEN) 5.7% -6.3% -22.2% -51.7% -48.9% -58.3%
US Auto Components 3.9% 10.8% 11.2% -20% 7.8% 5%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • TEN underperformed the Auto Components industry which returned -20% over the past year.
  • TEN underperformed the Market in United States of America which returned 6.8% over the past year.
Price Volatility
TEN
Industry
5yr Volatility vs Market

Value

 Is Tenneco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tenneco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tenneco.

NYSE:TEN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TEN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.19
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.192 (1 + (1- 21%) (267.36%))
2.815
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%)
14.65%

Discounted Cash Flow Calculation for NYSE:TEN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tenneco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TEN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.65%)
2019 170.00 Analyst x2 148.28
2020 715.57 Analyst x3 544.38
2021 964.00 Analyst x1 639.67
2022 958.00 Analyst x1 554.46
2023 956.00 Analyst x1 482.60
2024 962.43 Est @ 0.67% 423.76
2025 974.84 Est @ 1.29% 374.38
2026 991.63 Est @ 1.72% 332.17
2027 1,011.70 Est @ 2.02% 295.59
2028 1,034.33 Est @ 2.24% 263.58
Present value of next 10 years cash flows $4,058.87
NYSE:TEN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,034.33 × (1 + 2.73%) ÷ (14.65% – 2.73%)
$8,914.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,914.11 ÷ (1 + 14.65%)10
$2,271.63
NYSE:TEN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,058.87 + $2,271.63
$6,330.50
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,330.50 / 80.92
$78.23
NYSE:TEN Discount to Share Price
Calculation Result
Value per share (USD) From above. $78.23
Current discount Discount to share price of $25.39
= -1 x ($25.39 - $78.23) / $78.23
67.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Tenneco is available for.
Intrinsic value
>50%
Share price is $25.39 vs Future cash flow value of $78.23
Current Discount Checks
For Tenneco to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Tenneco's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Tenneco's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tenneco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tenneco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TEN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.94
NYSE:TEN Share Price ** NYSE (2019-04-16) in USD $25.39
United States of America Auto Components Industry PE Ratio Median Figure of 28 Publicly-Listed Auto Components Companies 15.07x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tenneco.

NYSE:TEN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TEN Share Price ÷ EPS (both in USD)

= 25.39 ÷ 0.94

27.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tenneco is overvalued based on earnings compared to the US Auto Components industry average.
  • Tenneco is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Tenneco's expected growth come at a high price?
Raw Data
NYSE:TEN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
29.8%per year
United States of America Auto Components Industry PEG Ratio Median Figure of 25 Publicly-Listed Auto Components Companies 1.21x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:TEN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.06x ÷ 29.8%

0.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tenneco is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Tenneco's assets?
Raw Data
NYSE:TEN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $21.34
NYSE:TEN Share Price * NYSE (2019-04-16) in USD $25.39
United States of America Auto Components Industry PB Ratio Median Figure of 40 Publicly-Listed Auto Components Companies 1.5x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
NYSE:TEN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TEN Share Price ÷ Book Value per Share (both in USD)

= 25.39 ÷ 21.34

1.19x

* Primary Listing of Tenneco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tenneco is good value based on assets compared to the US Auto Components industry average.
X
Value checks
We assess Tenneco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Tenneco has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Tenneco expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tenneco expected to grow at an attractive rate?
  • Tenneco's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Tenneco's earnings growth is expected to exceed the United States of America market average.
  • Tenneco's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TEN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TEN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 29.8%
NYSE:TEN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 13.8%
United States of America Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TEN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TEN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 19,751 569 1
2021-12-31 19,783 525 4
2020-12-31 18,731 1,259 505 8
2019-12-31 18,231 948 417 9
NYSE:TEN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 11,763 439 55
2018-09-30 9,874 580 230
2018-06-30 9,776 646 259
2018-03-31 9,556 660 206
2017-12-31 9,274 517 198
2017-09-30 9,038 337 177
2017-06-30 8,860 442 273
2017-03-31 8,755 482 358
2016-12-31 8,597 374 347
2016-09-30 8,447 562 380
2016-06-30 8,404 538 259
2016-03-31 8,294 538 249

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tenneco's earnings are expected to grow significantly at over 20% yearly.
  • Tenneco's revenue is expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TEN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Tenneco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TEN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 7.05 7.05 7.05 1.00
2021-12-31 6.50 6.50 6.50 1.00
2020-12-31 6.20 6.40 6.00 3.00
2019-12-31 4.64 6.16 3.06 4.00
NYSE:TEN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.94
2018-09-30 4.48
2018-06-30 5.02
2018-03-31 3.95
2017-12-31 3.75
2017-09-30 3.31
2017-06-30 5.03
2017-03-31 6.49
2016-12-31 6.20
2016-09-30 6.70
2016-06-30 4.49
2016-03-31 4.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tenneco is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Tenneco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tenneco has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Tenneco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tenneco's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tenneco's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Tenneco's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Tenneco's 1-year earnings growth is negative, it can't be compared to the US Auto Components industry average.
Earnings and Revenue History
Tenneco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tenneco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TEN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 11,763.00 55.00 650.00 200.00
2018-09-30 9,874.00 230.00 495.00 160.00
2018-06-30 9,776.00 259.00 497.00 161.00
2018-03-31 9,556.00 206.00 620.00 159.00
2017-12-31 9,274.00 198.00 625.00 158.00
2017-09-30 9,038.00 177.00 713.00 151.00
2017-06-30 8,860.00 273.00 690.00 152.00
2017-03-31 8,755.00 358.00 574.00 153.00
2016-12-31 8,597.00 347.00 585.00 152.00
2016-09-30 8,447.00 380.00 504.00 149.00
2016-06-30 8,404.00 259.00 509.00 142.00
2016-03-31 8,294.00 249.00 497.00 143.00
2015-12-31 8,181.00 241.00 480.00 145.00
2015-09-30 8,182.00 200.00 488.00 150.00
2015-06-30 8,238.00 226.00 486.00 158.00
2015-03-31 8,349.00 229.00 502.00 161.00
2014-12-31 8,381.00 225.00 510.00 162.00
2014-09-30 8,447.00 259.00 491.00 165.00
2014-06-30 8,329.00 193.00 494.00 158.00
2014-03-31 8,155.00 175.00 461.00 150.00
2013-12-31 7,964.00 183.00 447.00 143.00
2013-09-30 7,686.00 162.00 438.00 135.00
2013-06-30 7,501.00 275.00 418.00 128.00
2013-03-31 7,354.00 299.00 424.00 123.00
2012-12-31 7,363.00 275.00 424.00 126.00
2012-09-30 7,394.00 272.00 418.00 125.00
2012-06-30 7,389.00 177.00 428.00 129.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tenneco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tenneco used its assets less efficiently than the US Auto Components industry average last year based on Return on Assets.
  • Tenneco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tenneco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tenneco has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Tenneco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tenneco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tenneco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tenneco's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Tenneco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tenneco Company Filings, last reported 3 months ago.

NYSE:TEN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,054.00 5,493.00 697.00
2018-09-30 803.00 1,544.00 202.00
2018-06-30 799.00 1,459.00 235.00
2018-03-31 875.00 1,484.00 288.00
2017-12-31 724.00 1,461.00 315.00
2017-09-30 718.00 1,681.00 277.00
2017-06-30 682.00 1,597.00 333.00
2017-03-31 739.00 1,519.00 341.00
2016-12-31 660.00 1,384.00 347.00
2016-09-30 710.00 1,434.00 324.00
2016-06-30 624.00 1,360.00 311.00
2016-03-31 605.00 1,408.00 374.00
2015-12-31 505.00 1,210.00 287.00
2015-09-30 519.00 1,341.00 220.00
2015-06-30 621.00 1,230.00 250.00
2015-03-31 565.00 1,260.00 288.00
2014-12-31 573.00 1,115.00 282.00
2014-09-30 676.00 1,298.00 275.00
2014-06-30 647.00 1,297.00 260.00
2014-03-31 558.00 1,315.00 267.00
2013-12-31 492.00 1,102.00 275.00
2013-09-30 439.00 1,357.00 276.00
2013-06-30 393.00 1,278.00 235.00
2013-03-31 351.00 1,367.00 233.00
2012-12-31 306.00 1,180.00 223.00
2012-09-30 297.00 1,345.00 207.00
2012-06-30 142.00 1,366.00 181.00
  • Tenneco's level of debt (267.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (224.1% vs 267.4% today).
  • Debt is not well covered by operating cash flow (8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).
X
Financial health checks
We assess Tenneco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tenneco has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Tenneco's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.94%
Current annual income from Tenneco dividends. Estimated to be 4.09% next year.
If you bought $2,000 of Tenneco shares you are expected to receive $79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tenneco's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Tenneco's dividend is above the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TEN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TEN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 1.00 1.00
2021-12-31 1.08 4.00
2020-12-31 1.03 6.00
2019-12-31 1.02 6.00
NYSE:TEN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-06 1.000 3.514
2018-10-10 1.000 3.107
2018-07-20 1.000 2.309
2018-05-16 1.000 2.198
2018-02-07 1.000 1.911
2017-10-11 1.000 1.698
2017-07-12 1.000 1.767
2017-05-17 1.000 1.767
2017-05-05 1.000 1.728
2017-02-24 1.000 1.611

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Tenneco has been paying a dividend for less than 10 years.
  • Tenneco has only been paying a dividend for 2 years, and since then there has been no growth.
Current Payout to shareholders
What portion of Tenneco's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.4x coverage).
X
Income/ dividend checks
We assess Tenneco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tenneco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tenneco has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Tenneco's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Kesseler
COMPENSATION $4,377,356
AGE 51
TENURE AS CEO 0.5 years
CEO Bio

Mr. Brian J. Kesseler has been the Co-Chief Executive Officer of Tenneco Inc. since October 1, 2018 and has been its Director since October 11, 2016. Mr. Kesseler was Chief Executive Officer of Tenneco Inc. since May 17, 2017 until October 1, 2018. He served as a Vice President of Johnson Controls Inc. since January 2013 until January 6, 2015 and served as its President of Power Solutions Business since January 2013 until January 2013. He served as the Chief Operating Officer at Tenneco Inc. since January 12, 2015 until May 17, 2017. Mr. Kesseler served as Chief Operating Officer for Power Solutions Business at Johnson Controls Inc. since May 2012 until January 2013. He served as Vice President and General Manager of the power solutions business - North America at Johnson Controls Inc. since September 2006 until 2009. He served as Group Vice President and General Manager, North America of Johnson Controls Inc. since 2003 until 2006. Mr. Kesseler joined the Johnson Controls management team in 1994 and prior to his new assignment he served as Group Vice President and General Manager of Customer Business Units, North America. Before coming to Johnson Controls, he held positions of increasing responsibility at Ford Motor Company. Mr. Kesseler holds bachelor's degree in finance from Michigan State University and a master's degree in systems management from Baldwin-Wallace College. Mr. Kesseler holds an M.B.A. from Baldwin-Wallace College.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year.
  • Brian's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Tenneco management team in years:

1.3
Average Tenure
51
Average Age
  • The average tenure for the Tenneco management team is less than 2 years, this suggests a new team.
Management Team

Brian Kesseler

TITLE
Co-CEO & Director
COMPENSATION
$4M
AGE
51
TENURE
0.5 yrs

Roger Wood

TITLE
Co-CEO & Director
COMPENSATION
$240K
AGE
55
TENURE
0.5 yrs

Jason Hollar

TITLE
CFO & Executive VP
COMPENSATION
$1M
AGE
45
TENURE
0.8 yrs

Patrick Guo

TITLE
Executive VP & President of Clean Air
COMPENSATION
$2M
AGE
52
TENURE
8.8 yrs

Gregg Bolt

TITLE
Senior Vice President of Integration Office
COMPENSATION
$1M
AGE
58
TENURE
1.3 yrs

John Patouhas

TITLE
VP & Chief Accounting Officer
AGE
51
TENURE
0.2 yrs

Ben Patel

TITLE
VP & CTO
AGE
50
TENURE
2.1 yrs

Rusty Patel

TITLE
Senior VP & Chief Information Officer
TENURE
1.3 yrs

Linae Golla

TITLE
Vice President of Investor Relations
TENURE
9.1 yrs

Brandon Smith

TITLE
Senior VP
AGE
37
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the Tenneco board of directors in years:

11.5
Average Tenure
65.5
Average Age
  • The average tenure for the Tenneco board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Gregg Sherrill

TITLE
Non-Executive Chairman
COMPENSATION
$6M
AGE
65
TENURE
12.3 yrs

Brian Kesseler

TITLE
Co-CEO & Director
COMPENSATION
$4M
AGE
51
TENURE
2.5 yrs

Roger Wood

TITLE
Co-CEO & Director
COMPENSATION
$240K
AGE
55
TENURE
3.3 yrs

Roger Porter

TITLE
Independent Director
COMPENSATION
$260K
AGE
71
TENURE
21.3 yrs

David Price

TITLE
Independent Director
COMPENSATION
$240K
AGE
72
TENURE
19.4 yrs

Dennis Letham

TITLE
Independent Director
COMPENSATION
$260K
AGE
66
TENURE
11.5 yrs

Paul Stecko

TITLE
Lead Independent Director
COMPENSATION
$270K
AGE
74

Jane Warner

TITLE
Director
COMPENSATION
$240K
AGE
71
TENURE
14.5 yrs

Tom Freyman

TITLE
Independent Director
COMPENSATION
$240K
AGE
64
TENURE
6.3 yrs

Jim Metcalf

TITLE
Independent Director
COMPENSATION
$240K
AGE
60
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Aug 18 Buy Thomas Freyman Individual 09. Aug 18 09. Aug 18 5,000 $44.49 $222,450
14. May 18 Buy Brian Kesseler Individual 11. May 18 11. May 18 21,500 $46.63 $1,002,545
X
Management checks
We assess Tenneco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tenneco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Close Look At Tenneco Inc.’s (NYSE:TEN) 25% ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … First up, we'll look at what ROCE is and how we calculate it. … What is Return On Capital Employed (ROCE)?

Simply Wall St -

Is Tenneco Inc's (NYSE:TEN) ROE Of 41% Impressive?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.41 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Calculating The Fair Value Of Tenneco Inc (NYSE:TEN)

In this article I am going to calculate the intrinsic value of Tenneco Inc (NYSE:TEN). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

How Has Tenneco Inc's (NYSE:TEN) Earnings Fared Against The Long Term Trend

After looking at Tenneco Inc's (NYSE:TEN) latest earnings update (30 June 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … TEN's trailing twelve-month earnings (from 30 June 2018) of US$259.00m has

Simply Wall St -

Is It Too Late To Buy Tenneco Inc (NYSE:TEN)?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $52.58 at one point, and dropping to the lows of $43.11. … A question to answer is whether Tenneco's current trading price of $44.65 reflective of the actual value of the? … Let’s take a look at Tenneco’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Tenneco Inc (NYSE:TEN): The Return Story

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Tenneco, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Is Tenneco Inc (NYSE:TEN) A Great Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Recently, Tenneco Inc (NYSE:TEN) has returned an average of 2.00% per year to shareholders in terms of dividend yield. … Does Tenneco tick all the boxes of a great dividend stock?

Simply Wall St -

Is It Too Late To Buy Tenneco Inc (NYSE:TEN) At Its June Price?

Tenneco Inc (NYSE:TEN) closed yesterday at $46.57, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s look into this by assessing TEN's expected growth over the next few years. … One reason why investors are attracted to TEN is the high growth potential in the near future

Simply Wall St -

Why Tenneco Inc (NYSE:TEN) Should Have A Place In Your Portfolio

Tenneco Inc (NYSE:TEN) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level.

Simply Wall St -

Tenneco Inc (NYSE:TEN): Ex-Dividend Is In 3 Days, Should You Buy?

On the 22 June 2018, Tenneco Inc (NYSE:TEN) will be paying shareholders an upcoming dividend amount of $0.25 per share. … View our latest analysis for Tenneco Here's how I find good dividend stocks Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is their annual yield among the top 25% of dividend payers? … Generally, the rule of thumb for determining whether a stock is a reliable dividend payer is that it should be consistently paying dividends for the past 10 years or more.

Simply Wall St -

Company Info

Description

Tenneco Inc. designs, manufactures, and sells clean air, powertrain, and ride performance products and systems for light vehicle, commercial truck, off-highway, industrial, and aftermarket customers worldwide. The company offers clean air products and systems, including catalytic converters and diesel oxidation catalysts, diesel particulate filters, burner systems, lean nitrogen oxide (NOx) traps, hydrocarbon vaporizers and injectors, selective catalytic reduction (SCR) systems, SCR-coated diesel particulate filters systems, urea dosing systems, four-way catalysts, alternative NOx reduction technologies, mufflers and resonators, fabricated exhaust manifolds, pipes, hydroformed assemblies, elastomeric hangers and isolators, and aftertreatment control units. It also provides powertrain products and systems, such as pistons, piston rings, cylinder liners, valve seats and guides, bearings, spark plugs, valve train products, system protection products, and seals and gaskets; and aftermarket products, which include ride control parts and emission controls, as well as noise, vibration, and harshness (NVH) performance materials. In addition, the company offers ride performance products and systems comprising shock absorbers and struts, and NVH performance materials, as well as a product portfolio of electronically controlled ride performance technology; and motor parts, including chassis parts, braking products, and gaskets and seals, as well as filtration parts, lighting products, and ignition products. The company was formerly known as Tenneco Automotive Inc. and changed its name to Tenneco Inc. in 2005. Tenneco Inc. was founded in 1888 and is headquartered in Lake Forest, Illinois.

Details
Name: Tenneco Inc.
TEN
Exchange: NYSE
Founded: 1888
$2,054,553,620
80,919,796
Website: http://www.tenneco.com
Address: Tenneco Inc.
500 North Field Drive,
Lake Forest,
Illinois, 60045,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TEN Class A Common Stock New York Stock Exchange US USD 02. Jan 1968
DB TNN Class A Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0RT7 Class A Common Stock London Stock Exchange GB USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
81,000
Tenneco employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/16 23:47
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/03/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.