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TNC

Tennant NYSE:TNC Stock Report

Last Price

US$70.56

Market Cap

US$1.3b

7D

2.6%

1Y

-0.8%

Updated

18 Aug, 2022

Data

Company Financials +
TNC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends3/6

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

Summary of all time highs, changes and price drops for Tennant
Historical stock prices
Current Share PriceUS$70.56
52 Week HighUS$85.33
52 Week LowUS$54.90
Beta1.07
1 Month Change15.52%
3 Month Change17.80%
1 Year Change-0.79%
3 Year Change3.95%
5 Year Change15.67%
Change since IPO700.68%

Recent News & Updates

Aug 08

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.

Shareholder Returns

TNCUS MachineryUS Market
7D2.6%1.8%1.1%
1Y-0.8%-8.8%-9.0%

Return vs Industry: TNC exceeded the US Machinery industry which returned -8.8% over the past year.

Return vs Market: TNC exceeded the US Market which returned -9% over the past year.

Price Volatility

Is TNC's price volatile compared to industry and market?
TNC volatility
TNC Average Weekly Movement3.8%
Machinery Industry Average Movement5.7%
Market Average Movement7.6%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

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

FoundedEmployeesCEOWebsite
18704,263Dave Humlhttps://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

How do Tennant's earnings and revenue compare to its market cap?
TNC fundamental statistics
Market CapUS$1.31b
Earnings (TTM)US$56.30m
Revenue (TTM)US$1.09b

23.3x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNC income statement (TTM)
RevenueUS$1.09b
Cost of RevenueUS$671.10m
Gross ProfitUS$415.60m
Other ExpensesUS$359.30m
EarningsUS$56.30m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.03
Gross Margin38.24%
Net Profit Margin5.18%
Debt/Equity Ratio61.2%

How did TNC perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

32%

Payout Ratio

Does TNC pay a reliable dividends?

See TNC dividend history and benchmarks
When do you need to buy TNC by to receive an upcoming dividend?
Tennant dividend dates
Ex Dividend DateAug 30 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend11 days
Days until Dividend pay date27 days

Does TNC pay a reliable dividends?

See TNC dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is TNC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation 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.

TNC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA12.1x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does TNC's PE Ratio compare to its peers?

TNC PE Ratio vs Peers
The above table shows the PE ratio for TNC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average73.3x
EPAC Enerpac Tool Group
81.1x53.0%US$1.3b
PRLB Proto Labs
51.1x41.5%US$1.2b
ERII Energy Recovery
111.7x55.1%US$1.3b
OFLX Omega Flex
49.1xn/aUS$1.2b
TNC Tennant
23.3x18.4%US$1.3b

Price-To-Earnings vs Peers: TNC is good value based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (73.3x).


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 (23.3x) compared to the US Machinery industry average (22.1x)


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.

TNC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: TNC is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).


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 ($70.56) is trading below our estimate of fair value ($110.59)

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 less than 20% higher than the current share price.


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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

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNC's forecast earnings growth (18.4% per year) is above the savings rate (1.9%).

Earnings vs Market: TNC's earnings (18.4% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: TNC's revenue (4.9% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: TNC's revenue (4.9% 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

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TNC has high quality earnings.

Growing Profit Margin: TNC's current net profit margins (5.2%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: TNC's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: TNC's earnings growth over the past year (13.3%) is below its 5-year average (29.2% per year).

Earnings vs Industry: TNC earnings growth over the past year (13.3%) exceeded the Machinery industry 9.4%.


Return on Equity

High ROE: TNC's Return on Equity (13%) is considered low.


Discover strong past performing companies

Financial Health

How is Tennant's financial position?

Financial Health Score

4/6

Financial 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 ($521.1M) exceed its short term liabilities ($264.9M).

Long Term Liabilities: TNC's short term assets ($521.1M) exceed its long term liabilities ($326.3M).


Debt to Equity History and Analysis

Debt Level: TNC's net debt to equity ratio (44.2%) is considered high.

Reducing Debt: TNC's debt to equity ratio has reduced from 142.7% to 61.2% over the past 5 years.

Debt Coverage: TNC's debt is not well covered by operating cash flow (3%).

Interest Coverage: TNC's interest payments on its debt are well covered by EBIT (26.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.42%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 19 2022Ex Dividend DateAug 30 2022Dividend Pay DateSep 15 202216 days from Ex DividendBuy in the next 11 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TNC's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: TNC's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.99%).


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 (32.2%), TNC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: TNC is paying a dividend but the company has no free 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 ($USD4.30M) is about average for companies of similar size in the US market ($USD5.41M).

Compensation vs Earnings: Dave's compensation has increased by 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$1.311b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.