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Tennant

NYSE:TNC
Snowflake Description

Moderate growth potential second-rate dividend payer.

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

Tennant Company designs, manufactures, and markets floor cleaning equipment worldwide. The last earnings update was 49 days ago. More info.


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TNC Share Price and Events
7 Day Returns
2.8%
NYSE:TNC
-0.7%
US Machinery
0.1%
US Market
1 Year Returns
-21%
NYSE:TNC
-1.6%
US Machinery
1.2%
US Market
TNC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tennant (TNC) 2.8% 1.6% -1.8% -21% 13.3% -10.3%
US Machinery -0.7% 1.7% -1.2% -1.6% 40.5% 20.6%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • TNC underperformed the Machinery industry which returned -1.6% over the past year.
  • TNC underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
TNC
Industry
5yr Volatility vs Market

Value

 Is Tennant 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 Tennant 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 Tennant.

NYSE:TNC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
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:TNC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.061 (1 + (1- 21%) (35.86%))
1.243
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.243 * 5.96%)
10.14%

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

The calculations below outline how an intrinsic value for Tennant 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:TNC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.14%)
2019 69.60 Analyst x1 63.19
2020 87.10 Analyst x1 71.81
2021 91.50 Analyst x1 68.49
2022 109.00 Analyst x1 74.08
2023 122.10 Analyst x1 75.35
2024 132.80 Est @ 8.76% 74.41
2025 142.03 Est @ 6.95% 72.26
2026 150.10 Est @ 5.68% 69.34
2027 157.30 Est @ 4.8% 65.98
2028 163.88 Est @ 4.18% 62.41
Present value of next 10 years cash flows $697.30
NYSE:TNC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $163.88 × (1 + 2.73%) ÷ (10.14% – 2.73%)
$2,273.19
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,273.19 ÷ (1 + 10.14%)10
$865.66
NYSE:TNC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $697.30 + $865.66
$1,562.96
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,562.96 / 18.16
$86.05
NYSE:TNC Discount to Share Price
Calculation Result
Value per share (USD) From above. $86.05
Current discount Discount to share price of $61.63
= -1 x ($61.63 - $86.05) / $86.05
28.4%

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

Current Discount
Amount off the current price Tennant is available for.
Intrinsic value
28%
Share price is $61.63 vs Future cash flow value of $86.05
Current Discount Checks
For Tennant to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Tennant's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Tennant's share price is below the future cash flow value, but not 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 Tennant's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tennant's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TNC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.97
NYSE:TNC Share Price ** NYSE (2019-06-18) in USD $61.63
United States of America Machinery Industry PE Ratio Median Figure of 99 Publicly-Listed Machinery Companies 20.15x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

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

** Primary Listing of Tennant.

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

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

= 61.63 ÷ 1.97

31.24x

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

  • Tennant is overvalued based on earnings compared to the US Machinery industry average.
  • Tennant is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Tennant's expected growth come at a high price?
Raw Data
NYSE:TNC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
23.3%per year
United States of America Machinery Industry PEG Ratio Median Figure of 80 Publicly-Listed Machinery Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.24x ÷ 23.3%

1.34x

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

  • Tennant is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Tennant's assets?
Raw Data
NYSE:TNC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $17.51
NYSE:TNC Share Price * NYSE (2019-06-18) in USD $61.63
United States of America Machinery Industry PB Ratio Median Figure of 127 Publicly-Listed Machinery Companies 2.22x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:TNC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 61.63 ÷ 17.51

3.52x

* Primary Listing of Tennant.

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

  • Tennant is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Tennant'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 Machinery 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 Machinery industry average (and greater than 0)? (1 check)
  5. Tennant has a total score of 1/6, 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 Tennant expected to perform in the next 1 to 3 years based on estimates from 2 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
23.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tennant expected to grow at an attractive rate?
  • Tennant's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Tennant's earnings growth is expected to exceed the United States of America market average.
  • Tennant's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TNC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TNC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 23.3%
NYSE:TNC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.1%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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:TNC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TNC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,412 1
2022-12-31 1,329 1
2021-12-31 1,254 1
2020-12-31 1,185 52 2
2019-12-31 1,145 40 2
NYSE:TNC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,113 63 36
2018-12-31 1,124 80 33
2018-09-30 1,118 65 23
2018-06-30 1,106 83 16
2018-03-31 1,085 71 1
2017-12-31 1,003 54 -6
2017-09-30 936 57 12
2017-06-30 874 43 20
2017-03-31 820 53 38
2016-12-31 809 58 47
2016-09-30 803 48 44
2016-06-30 807 51 32

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tennant's earnings are expected to grow significantly at over 20% yearly.
  • Tennant's revenue is expected to grow by 5.1% 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:TNC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Tennant Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TNC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 2.81 2.85 2.76 2.00
2019-12-31 2.18 2.20 2.15 2.00
NYSE:TNC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.97
2018-12-31 1.86
2018-09-30 1.26
2018-06-30 0.92
2018-03-31 0.06
2017-12-31 -0.35
2017-09-30 0.70
2017-06-30 1.15
2017-03-31 2.18
2016-12-31 2.66
2016-09-30 2.53
2016-06-30 1.81

*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.
  • Unable to establish if Tennant will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Tennant'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.
Tennant has a total score of 3/6, 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 Tennant 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 Tennant's growth in the last year to its industry (Machinery).
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.
  • Tennant's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Tennant's 1-year earnings growth exceeds its 5-year average (3243.9% vs -19.3%)
  • Tennant's earnings growth has exceeded the US Machinery industry average in the past year (3243.9% vs 28.5%).
Earnings and Revenue History
Tennant'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 Tennant Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TNC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,113.21 35.51 344.00 29.94
2018-12-31 1,123.51 33.41 348.80 30.74
2018-09-30 1,117.55 22.51 345.82 31.19
2018-06-30 1,106.21 16.40 353.78 31.59
2018-03-31 1,084.81 1.06 347.34 31.57
2017-12-31 1,003.07 -6.20 319.68 32.01
2017-09-30 935.52 12.38 299.94 34.27
2017-06-30 873.73 20.30 267.32 34.78
2017-03-31 819.77 38.22 248.81 35.28
2016-12-31 808.57 46.61 248.36 34.74
2016-09-30 802.68 44.44 246.78 32.81
2016-06-30 807.35 32.01 249.06 32.60
2016-03-31 805.92 31.50 248.85 32.61
2015-12-31 811.80 32.09 248.53 32.42
2015-09-30 822.22 36.43 252.07 31.78
2015-06-30 820.06 49.18 252.39 30.41
2015-03-31 823.74 49.88 252.82 29.66
2014-12-31 821.98 50.65 250.90 29.43
2014-09-30 800.85 43.41 245.20 29.20
2014-06-30 786.74 42.24 239.65 30.32
2014-03-31 767.90 40.97 233.48 30.49
2013-12-31 752.01 40.23 229.96 30.53
2013-09-30 744.38 43.77 229.43 31.01
2013-06-30 734.11 41.90 228.20 30.40
2013-03-31 733.36 41.32 230.32 29.51
2012-12-31 738.98 41.58 234.11 29.26
2012-09-30 744.63 39.00 236.97 29.23
2012-06-30 753.35 39.99 237.79 29.12

*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.
  • Tennant has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tennant used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Tennant's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tennant'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 Machinery 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.
Tennant has a total score of 2/6, 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 Tennant'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 Tennant's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tennant is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tennant's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Tennant'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 1.3x 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 Tennant Company Filings, last reported 2 months ago.

NYSE:TNC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 320.20 401.40 46.90
2018-12-31 316.35 355.07 85.61
2018-09-30 309.08 347.94 53.47
2018-06-30 302.20 359.67 53.90
2018-03-31 307.37 373.32 54.00
2017-12-31 298.47 376.84 58.40
2017-09-30 296.54 388.53 55.95
2017-06-30 287.37 411.02 53.31
2017-03-31 276.55 45.05 45.00
2016-12-31 278.54 36.19 58.03
2016-09-30 272.22 36.21 42.28
2016-06-30 260.79 21.21 27.95
2016-03-31 251.73 22.65 26.91
2015-12-31 252.21 24.65 51.30
2015-09-30 245.35 24.58 56.81
2015-06-30 278.10 24.58 67.64
2015-03-31 272.48 26.06 76.82
2014-12-31 280.65 28.14 92.96
2014-09-30 273.37 28.17 79.78
2014-06-30 269.39 28.21 62.60
2014-03-31 265.43 28.24 63.40
2013-12-31 263.85 31.80 80.98
2013-09-30 251.23 31.98 65.31
2013-06-30 240.51 32.18 48.58
2013-03-31 232.48 31.77 49.76
2012-12-31 235.05 32.32 53.94
2012-09-30 229.61 33.65 62.70
2012-06-30 222.60 34.28 38.43
  • Tennant's level of debt (112.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (10.6% vs 112.5% today).
  • Debt is not well covered by operating cash flow (17.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.6x coverage).
X
Financial health checks
We assess Tennant'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. Tennant 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 Tennant'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
1.43%
Current annual income from Tennant dividends.
If you bought $2,000 of Tennant shares you are expected to receive $29 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?
  • Tennant's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Tennant's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
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:TNC 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 2 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

NYSE:TNC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31
NYSE:TNC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 0.880 1.453
2019-02-14 0.880 1.389
2018-11-09 0.880 1.549
2018-08-15 0.840 1.189
2018-04-25 0.840 1.082
2018-02-15 0.840 1.234
2017-11-09 0.840 1.262
2017-08-17 0.840 1.292
2017-04-26 0.840 1.168
2017-02-15 0.840 1.173
2016-10-31 0.840 1.188
2016-08-17 0.800 1.263
2016-04-27 0.800 1.434
2016-02-17 0.800 1.547
2015-11-09 0.800 1.425
2015-08-19 0.800 1.406
2015-04-29 0.800 1.254
2015-02-18 0.800 1.213
2014-11-10 0.800 1.162
2014-08-20 0.800 1.157
2014-04-23 0.800 1.167
2014-02-19 0.720 1.131
2013-11-11 0.720 1.117
2013-08-15 0.720 1.217
2013-04-24 0.720 1.422
2013-02-13 0.720 1.523
2012-10-24 0.720 1.746
2012-08-15 0.680 1.601
2012-04-25 0.680 1.652
2012-02-15 0.680 1.566
2011-11-10 0.680 1.730
2011-08-17 0.680 1.767
2011-04-28 0.680 1.748
2011-02-16 0.680 1.704
2010-11-09 0.680 1.798
2010-08-18 0.560 1.732
2010-04-28 0.560 1.657
2010-02-17 0.560 1.996
2009-11-10 0.560 2.114
2009-08-19 0.520 1.870

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Tennant's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Tennant'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 Tennant afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tennant 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 Tennant'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
H. Killingstad
COMPENSATION $4,236,191
AGE 62
TENURE AS CEO 13.5 years
CEO Bio

Mr. H. Chris Killingstad serves as the Chief Executive Officer and President of Tennant at Orbio Technologies Group. Mr. Killingstad has been the Chief Executive Officer and President of Tennant Company since December 1, 2005 and has been its Director since October 6, 2005. He serves as a Director of Tennant Sales and Service Company. He served as Vice President of North America at Tennant Co. since Joining in April 2002. From 1996 to 2000, Mr. Killingstad was employed by The Pillsbury Company, a consumer foods manufacturer. From 1999 to 2000, he served as Senior Vice President and General Manager of Frozen Products for Pillsbury North America, from 1996 to 1999, he served as Regional Vice President and Managing Director of Pillsbury Europe and as Regional Vice President of Haagen-Daas Asia Pacific from 1990 to 1996. He has played a pivotal role in Tennant's renewed growth and transformation to date. He was employed by The Pillsbury Company for 10 years in senior management positions in Europe, Asia and North America. He served as Pillsbury's Senior Vice President and General Manager of Pillsbury Frozen Products in North America, responsible for this $2.1 billion business. He spent eight years at Pepsi-Cola International in positions of increasing management responsibility in the areas of international business development and sales and marketing. He also previously held financial management positions with General Electric. from 1978 to 1980. Mr. Killingstad earned a Master's degree in Business from the Amos Tuck School at Dartmouth College and a Bachelor's degree from Colgate University.

CEO Compensation
  • H.'s compensation has been consistent with company performance over the past year, both up more than 20%.
  • H.'s remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

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

3.7
Average Tenure
51.5
Average Age
  • The tenure for the Tennant management team is about average.
Management Team

H. Killingstad

TITLE
President
COMPENSATION
$4M
AGE
62
TENURE
13.5 yrs

Keith Woodward

TITLE
Senior VP & CFO
COMPENSATION
$922K
AGE
53
TENURE
0.5 yrs

David Huml

TITLE
Senior Vice President of EMEA
COMPENSATION
$1M
AGE
49
TENURE
1 yrs

Carol McKnight

TITLE
Senior VP & Chief Administrative Officer
COMPENSATION
$1M
AGE
50
TENURE
2.4 yrs

Rusty Zay

TITLE
Senior Vice President of the Americas and Research & Development
COMPENSATION
$2M
AGE
47
TENURE
4.9 yrs

Mary Talbott

TITLE
Senior VP
AGE
49
TENURE
0.4 yrs

Kathryn Lovik

TITLE
Global Communications Director
TENURE
15.2 yrs

Thomas Stueve

TITLE
VP of Global Tax & Treasury and Treasurer

Karen Durant

TITLE
VP & Controller
AGE
58
TENURE
11.8 yrs

David Cox

TITLE
Executive Officer
AGE
80
Board of Directors Tenure

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

9.8
Average Tenure
59
Average Age
  • The tenure for the Tennant board of directors is about average.
Board of Directors

Steve Sonnenberg

TITLE
Lead Director
COMPENSATION
$195K
AGE
65
TENURE
2.8 yrs

H. Killingstad

TITLE
President
COMPENSATION
$4M
AGE
62
TENURE
13.7 yrs

Carol Eicher

TITLE
Independent Director
COMPENSATION
$171K
AGE
59
TENURE
10.8 yrs

Don Mulligan

TITLE
Independent Director
COMPENSATION
$185K
AGE
57
TENURE
10.4 yrs

David Windley

TITLE
Independent Director
COMPENSATION
$176K
AGE
54
TENURE
3.3 yrs

Bill Austen

TITLE
Independent Director
COMPENSATION
$176K
AGE
59
TENURE
12.3 yrs

Dave Wichmann

TITLE
Independent Director
COMPENSATION
$176K
AGE
55
TENURE
9.8 yrs

Azita Arvani

TITLE
Independent Director
COMPENSATION
$166K
AGE
55
TENURE
6.7 yrs

Maria Green

TITLE
Director
AGE
65
TENURE
0.3 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 ($) Value ($)
X
Management checks
We assess Tennant'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. Tennant 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

With A 11% Return On Equity, Is Tennant Company (NYSE:TNC) A Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Tennant: 11% = US$36m ÷ US$320m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Tennant Have A Good Return On Equity? … How Does Debt Impact Return On Equity?

Simply Wall St -

Does Market Volatility Impact Tennant Company's (NYSE:TNC) Share Price?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. … What this means for you: Since Tennant tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Here's What You Should Know About Tennant Company's (NYSE:TNC) 1.4% Dividend Yield

Dividend paying stocks like Tennant Company (NYSE:TNC) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. While Tennant's 1.4% dividend yield is not the highest, we think its lengthy payment history is quite interesting. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis NYSE:TNC Historical Dividend Yield, May 13th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 44% of Tennant's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Tennant paid out 61% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. Is Tennant's Balance Sheet Risky? As Tennant has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Tennant has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

If You Had Bought Tennant (NYSE:TNC) Shares Three Years Ago You'd Have Made 29%

That's what has happened with the Tennant Company (NYSE:TNC) share price. … Disappointingly, the share price is down 7.4% in the last year. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

Tennant Company (NYSE:TNC): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like Tennant Company (NYSE:TNC), with a market cap of US$1.1b. … However, an important fact which most ignore is: how financially healthy is the business? … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Why We’re Not Keen On Tennant Company’s (NYSE:TNC) 8.8% Return On Capital

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Can Tennant Company (NYSE:TNC) Improve Its Returns?

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. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.11. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Calculating The Fair Value Of Tennant Company (NYSE:TNC)

How far off is Tennant Company (NYSE:TNC) from its intrinsic value? … by projecting its future cash flows and then discounting them 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 -

Here's What Tennant Company's (NYSE:TNC) P/E Is Telling Us

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Tennant has a price to earnings ratio of 47.16, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

How Does Tennant Company (NYSE:TNC) Affect Your Portfolio Volatility?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Company Info

Description

Tennant Company designs, manufactures, and markets floor cleaning equipment worldwide. The company offers a suite of products, including floor maintenance and outdoor 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. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IRIS, VLX, Superior Anodes, Orbio, and IPC brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organization, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Minneapolis, Minnesota.

Details
Name: Tennant Company
TNC
Exchange: NYSE
Founded: 1870
$1,119,454,653
18,164,119
Website: http://www.tennantco.com
Address: Tennant Company
701 North Lilac Drive,
Minneapolis,
Minnesota, 55422,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TNC Common Stock New York Stock Exchange US USD 02. Jan 1980
DB TN1 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1980
Number of employees
Current staff
Staff numbers
4,341
Tennant employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:44
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/05/01
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
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.