NYSE:TNC

Stock Analysis Report

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Market Cap

US$1.5b

Last Updated

2021/07/30 01:33 UTC

Data Sources

Company Financials +

Executive Summary

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Tennant's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TNC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TNC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

TNC

1.3%

US Machinery

0.8%

US Market


1 Year Return

18.9%

TNC

48.0%

US Machinery

37.5%

US Market

Return vs Industry: TNC underperformed the US Machinery industry which returned 43.7% over the past year.

Return vs Market: TNC underperformed the US Market which returned 36.5% over the past year.


Shareholder returns

TNCIndustryMarket
7 Day2.3%1.3%0.8%
30 Day-0.8%0.9%1.0%
90 Day0.1%-1.3%3.8%
1 Year20.3%18.9%51.1%48.0%39.7%37.5%
3 Year0.4%-3.4%62.2%52.7%64.4%54.1%
5 Year33.5%25.4%140.0%115.0%124.9%100.0%

Long-Term Price Volatility Vs. Market

How volatile is Tennant's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tennant undervalued compared to its fair value and its price relative to the market?

29.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TNC ($79) is trading below our estimate of fair value ($112.31)

Significantly Below Fair Value: TNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TNC is good value based on its PE Ratio (26.8x) compared to the US Machinery industry average (32.8x).

PE vs Market: TNC is poor value based on its PE Ratio (26.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: TNC is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: TNC is overvalued based on its PB Ratio (3.5x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Tennant forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNC's forecast earnings growth (12.9% per year) is above the savings rate (2%).

Earnings vs Market: TNC's earnings (12.9% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: TNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: TNC's revenue (5.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TNC's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TNC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Tennant performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TNC has high quality earnings.

Growing Profit Margin: TNC's current net profit margins (5.4%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: TNC's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: TNC's earnings growth over the past year (18.9%) exceeds its 5-year average (11.5% per year).

Earnings vs Industry: TNC earnings growth over the past year (18.9%) exceeded the Machinery industry 3.4%.


Return on Equity

High ROE: TNC's Return on Equity (12.9%) is considered low.


Financial Health

How is Tennant's financial position?


Financial Position Analysis

Short Term Liabilities: TNC's short term assets ($530.5M) exceed its short term liabilities ($277.2M).

Long Term Liabilities: TNC's short term assets ($530.5M) exceed its long term liabilities ($382.2M).


Debt to Equity History and Analysis

Debt Level: TNC's debt to equity ratio (73.1%) is considered high.

Reducing Debt: TNC's debt to equity ratio has increased from 8.9% to 73.1% over the past 5 years.

Debt Coverage: TNC's debt is well covered by operating cash flow (46.6%).

Interest Coverage: TNC's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

What is Tennant current dividend yield, its reliability and sustainability?

1.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TNC's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: TNC's dividend (1.16%) is low compared to the top 25% of dividend payers in the US market (3.52%).


Stability and Growth of Payments

Stable Dividend: TNC's dividends per share have been stable in the past 10 years.

Growing Dividend: TNC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), TNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.3yrs

Average management tenure


CEO

Dave Huml (52 yo)

0.33

Tenure

US$1,463,669

Compensation

Mr. David W. Huml, also known as Dave, has been President, Chief Executive Officer and Director of Tennant Company since March 1, 2021. He had been Chief Operating Officer at Tennant Company since April 1,...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.46M) is below average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TNC's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: TNC's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TNC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tennant Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tennant Company
  • Ticker: TNC
  • Exchange: NYSE
  • Founded: 1870
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.470b
  • Shares outstanding: 18.61m
  • Website: https://www.tennantco.com

Number of Employees


Location

  • Tennant Company
  • 10400 Clean Street
  • Eden Prairie
  • Minnesota
  • 55344-2650
  • United States

Listings


Biography

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a sui...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 01:33
End of Day Share Price2021/07/29 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.