| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 4/6 |
TNC Stock Overview
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.
Tennant Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$65.60 |
| 52 Week High | US$85.33 |
| 52 Week Low | US$54.90 |
| Beta | 1.07 |
| 1 Month Change | 10.87% |
| 3 Month Change | 6.44% |
| 1 Year Change | -11.03% |
| 3 Year Change | -2.77% |
| 5 Year Change | 3.39% |
| Change since IPO | 644.40% |
Recent News & Updates
Tennant Q2 2022 Earnings Preview
Tennant (NYSE:TNC) is scheduled to announce Q2 earnings results on Tuesday, August 9th, before market open. The consensus EPS Estimate is $0.86 (-27.1% Y/Y) and the consensus Revenue Estimate is $276.65M (-0.9% Y/Y). Over the last 2 years, TNC has beaten EPS estimates 88% of the time and has beaten revenue estimates 50% of the time.
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Shareholder Returns
| TNC | US Machinery | US Market | |
|---|---|---|---|
| 7D | -2.6% | 0.4% | 1.1% |
| 1Y | -11.0% | -12.7% | -13.0% |
Return vs Industry: TNC exceeded the US Machinery industry which returned -12.9% over the past year.
Return vs Market: TNC exceeded the US Market which returned -12.9% over the past year.
Price Volatility
| TNC volatility | |
|---|---|
| TNC Average Weekly Movement | 4.0% |
| Machinery Industry Average Movement | 6.0% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: TNC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TNC's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1870 | 4,263 | Dave Huml | https://www.tennantco.com |
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 suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, specialty surface coatings, and asset management solutions. It also provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions.
Tennant Fundamentals Summary
| TNC fundamental statistics | |
|---|---|
| Market Cap | US$1.22b |
| Earnings (TTM) | US$49.50m |
| Revenue (TTM) | US$1.09b |
24.6x
P/E Ratio1.1x
P/S RatioIs TNC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TNC income statement (TTM) | |
|---|---|
| Revenue | US$1.09b |
| Cost of Revenue | US$662.00m |
| Gross Profit | US$423.60m |
| Other Expenses | US$374.10m |
| Earnings | US$49.50m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 09, 2022
| Earnings per share (EPS) | 2.66 |
| Gross Margin | 39.02% |
| Net Profit Margin | 4.56% |
| Debt/Equity Ratio | 64.4% |
How did TNC perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield36%
Payout RatioDoes TNC pay a reliable dividends?
See TNC dividend history and benchmarks| Tennant dividend dates | |
|---|---|
| Ex Dividend Date | Aug 30 2022 |
| Dividend Pay Date | Sep 15 2022 |
| Days until Ex dividend | 20 days |
| Days until Dividend pay date | 36 days |
Does TNC pay a reliable dividends?
See TNC dividend history and benchmarksValuation
Is TNC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TNC?
Other financial metrics that can be useful for relative valuation.
| What is TNC's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$1.22b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.3x |
| Enterprise Value/EBITDA | 11.3x |
| PEG Ratio | 1.1x |
Price to Earnings Ratio vs Peers
How does TNC's PE Ratio compare to its peers?
| TNC PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 49.3x | ||
EPAC Enerpac Tool Group | 75.8x | 53.0% | US$1.2b |
PRLB Proto Labs | 52.5x | 34.5% | US$1.3b |
SXI Standex International | 18.7x | n/a | US$1.2b |
OFLX Omega Flex | 50.1x | n/a | US$1.2b |
TNC Tennant | 24.6x | 23.2% | US$1.2b |
Price-To-Earnings vs Peers: TNC is good value based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (49.3x).
Price to Earnings Ratio vs Industry
How does TNC's PE Ratio compare vs other companies in the US Machinery Industry?
Price-To-Earnings vs Industry: TNC is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the US Machinery industry average (22.4x)
Price to Earnings Ratio vs Fair Ratio
What is TNC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 24.6x |
| Fair PE Ratio | 20x |
Price-To-Earnings vs Fair Ratio: TNC is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (20x).
Share Price vs Fair Value
What is the Fair Price of TNC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TNC ($65.6) is trading below our estimate of fair value ($89.14)
Significantly Below Fair Value: TNC is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.
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Future Growth
How is Tennant forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
23.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TNC's forecast earnings growth (23.2% per year) is above the savings rate (1.9%).
Earnings vs Market: TNC's earnings (23.2% per year) are forecast to grow faster than the US market (12.8% per year).
High Growth Earnings: TNC's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TNC's revenue (4.3% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: TNC's revenue (4.3% 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
Discover growth companies
Past Performance
How has Tennant performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
26.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TNC has high quality earnings.
Growing Profit Margin: TNC's current net profit margins (4.6%) are lower than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: TNC's earnings have grown significantly by 26.4% per year over the past 5 years.
Accelerating Growth: TNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TNC had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Machinery industry average (9.3%).
Return on Equity
High ROE: TNC's Return on Equity (11.3%) is considered low.
Discover strong past performing companies
Financial Health
How is Tennant's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: TNC's short term assets ($524.8M) exceed its short term liabilities ($266.4M).
Long Term Liabilities: TNC's short term assets ($524.8M) exceed its long term liabilities ($346.5M).
Debt to Equity History and Analysis
Debt Level: TNC's net debt to equity ratio (39.1%) is considered satisfactory.
Reducing Debt: TNC's debt to equity ratio has increased from 17.7% to 64.4% over the past 5 years.
Debt Coverage: TNC's debt is not well covered by operating cash flow (14.5%).
Interest Coverage: TNC's interest payments on its debt are well covered by EBIT (19.7x coverage).
Balance Sheet
Discover healthy companies
Dividend
What is Tennant current dividend yield, its reliability and sustainability?
Dividend Score
4/6Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
1.52%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TNC's dividend (1.52%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: TNC's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (4.1%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (35.9%), TNC's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (133.7%), TNC's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Dave Huml (53 yo)
1.42yrs
Tenure
US$4,303,328
Compensation
Mr. David W. Huml, also known as Dave, has been President, Chief Executive Officer and Director of Tennant Company since March 1, 2021. He had been Chief Operating Officer at Tennant Company since April 1,...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD4.30M) is about average for companies of similar size in the US market ($USD5.43M).
Compensation vs Earnings: Dave's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: TNC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
Experienced Board: TNC's board of directors are considered experienced (8.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Tennant Company's employee growth, exchange listings and data sources
Key Information
- Name: Tennant Company
- Ticker: TNC
- Exchange: NYSE
- Founded: 1870
- Industry: Industrial Machinery
- Sector: Capital Goods
- Implied Market Cap: US$1.219b
- Shares outstanding: 18.58m
- Website: https://www.tennantco.com
Number of Employees
Location
- Tennant Company
- 10400 Clean Street
- Eden Prairie
- Minnesota
- 55344-2650
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/08 00:00 |
| End of Day Share Price | 2022/08/08 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.