Tennant
Market Cap
US$1.5b
Last Updated
2020/01/20 23:47 UTC
Data Sources
Company Financials +
Executive Summary
Tennant Company designs, manufactures, and markets floor cleaning equipment worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with adequate balance sheet and pays a dividend.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.7%
TNC
1.1%
US Machinery
1.2%
US Market
1 Year Return
45.9%
TNC
19.2%
US Machinery
24.2%
US Market
Return vs Industry: TNC exceeded the US Machinery industry which returned 22.4% over the past year.
Return vs Market: TNC exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| TNC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 1.1% | 1.2% |
| 30 Day | 8.0% | 1.0% | 3.5% |
| 90 Day | 21.1% | 8.6% | 11.7% |
| 1 Year | 47.9%45.9% | 21.4%19.2% | 26.9%24.2% |
| 3 Year | 34.3%29.2% | 46.1%36.7% | 53.0%43.2% |
| 5 Year | 31.1%22.9% | 77.0%55.6% | 75.3%56.0% |
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
1 week ago | Simply Wall St
Did You Miss Tennant's (NYSE:TNC) 43% Share Price Gain?1 month ago | Simply Wall St
Here's Why Tennant (NYSE:TNC) Can Manage Its Debt Responsibly1 month ago | Simply Wall St
How Does Investing In Tennant Company (NYSE:TNC) Impact The Volatility Of Your Portfolio?Valuation
Is Tennant undervalued compared to its fair value and its price relative to the market?
27.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TNC ($82.56) is trading below our estimate of fair value ($116.24)
Significantly Below Fair Value: TNC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TNC is poor value based on its PE Ratio (35.1x) compared to the Machinery industry average (23.4x).
PE vs Market: TNC is poor value based on its PE Ratio (35.1x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: TNC is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: TNC is overvalued based on its PB Ratio (4.5x) compared to the US Machinery industry average (2.5x).
Next Steps
Future Growth
How is Tennant forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
22.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TNC's forecast earnings growth (24.7% per year) is above the savings rate (1.7%).
Earnings vs Market: TNC's earnings (24.7% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TNC's revenue (5.2% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: TNC's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TNC's Return on Equity is forecast to be low in 3 years time (17%).
Next Steps
Past Performance
How has Tennant performed over the past 5 years?
-13.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TNC has high quality earnings.
Growing Profit Margin: TNC's current net profit margins (3.8%) are higher than last year (2%).
Past Earnings Growth Analysis
Earnings Trend: TNC's earnings have declined by -13.5% per year over the past 5 years.
Accelerating Growth: TNC's earnings growth over the past year (89%) exceeds its 5-year average (-13.5% per year).
Earnings vs Industry: TNC earnings growth over the past year (89%) exceeded the Machinery industry 9.6%.
Return on Equity
High ROE: TNC's Return on Equity (12.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Tennant's financial position?
Financial Position Analysis
Short Term Liabilities: TNC's short term assets ($479.5M) exceed its short term liabilities ($269.9M).
Long Term Liabilities: TNC's short term assets ($479.5M) exceed its long term liabilities ($435.4M).
Debt to Equity History and Analysis
Debt Level: TNC's debt to equity ratio (100.7%) is considered high.
Reducing Debt: TNC's debt to equity ratio has increased from 10.2% to 100.7% over the past 5 years.
Debt Coverage: TNC's debt is well covered by operating cash flow (24.1%).
Interest Coverage: TNC's interest payments on its debt are well covered by EBIT (4.3x coverage).
Balance Sheet
Inventory Level: TNC has a high level of physical assets or inventory.
Debt Coverage by Assets: TNC's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Tennant's current dividend yield, its reliability and sustainability?
1.04%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TNC's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: TNC's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 (37.4%), TNC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TNC's dividends in 3 years are forecast to be well covered by earnings (25.2% payout ratio).
Next Steps
Management
What is the CEO of Tennant's salary, the management and board of directors tenure and is there insider trading?
4.3yrs
Average management tenure
CEO
H. Killingstad (63yo)
14.1yrs
Tenure
US$4,236,191
Compensation
Mr. H. Chris Killingstad serves as the Chief Executive Officer and President of Tennant at Orbio Technologies Group. Mr. Killingstad has been the Chief Executive Officer and President of Tennant Company si ...
CEO Compensation Analysis
Compensation vs Market: H.'s total compensation ($USD4.24M) is about average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: H.'s compensation has increased by more than 20% in the past year.
Management Age and Tenure
4.3yrs
Average Tenure
53yo
Average Age
Experienced Management: TNC's management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
10.4yrs
Average Tenure
60yo
Average Age
Experienced Board: TNC's board of directors are seasoned and experienced ( 10.4 years average tenure).
Insider Trading
Insider Buying: TNC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Operating Officer Senior Vice President of EMEA |
| Shares | 506 |
| Max Price | US$79.06 |
| Entity | Individual |
| Role | Chief Operating Officer Senior Vice President of EMEA |
| Shares | 424 |
| Max Price | US$70.10 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Karen Durant (59yo)
VP & Controller
- Tenure: 12.3yrs
David Cox (81yo)
Executive Officer
H. Killingstad (63yo)
President
- Tenure: 14.1yrs
- Compensation: US$4.24m
Kathryn Lovik
Global Communications Director
- Tenure: 15.8yrs
Keith Woodward (55yo)
Senior VP & CFO
- Tenure: 1.1yrs
- Compensation: US$922.36k
Rusty Zay (48yo)
Senior Vice President of the Americas and Research & Development
- Tenure: 5.5yrs
- Compensation: US$1.53m
Mary Talbott (50yo)
Senior VP
- Tenure: 1yrs
Carol McKnight (51yo)
Senior VP & Chief Administrative Officer
- Tenure: 3yrs
- Compensation: US$1.12m
Thomas Stueve
VP of Global Tax & Treasury and Treasurer
David Huml (50yo)
Senior Vice President of EMEA
- Tenure: 1.6yrs
- Compensation: US$1.41m
Board Members
Don Mulligan (58yo)
Independent Director
- Tenure: 11yrs
- Compensation: US$184.99k
H. Killingstad (63yo)
President
- Tenure: 14.1yrs
- Compensation: US$4.24m
Carol Eicher (60yo)
Independent Director
- Tenure: 11.4yrs
- Compensation: US$170.99k
Dave Wichmann (56yo)
Independent Director
- Tenure: 10.4yrs
- Compensation: US$175.99k
Bill Austen (60yo)
Independent Director
- Tenure: 12.9yrs
- Compensation: US$175.99k
Steve Sonnenberg (66yo)
Lead Director
- Tenure: 3.4yrs
- Compensation: US$194.99k
David Windley (55yo)
Independent Director
- Tenure: 3.9yrs
- Compensation: US$175.99k
Maria Green (66yo)
Independent Director
- Tenure: 0.8yrs
Azita Arvani (56yo)
Independent Director
- Tenure: 7.3yrs
- Compensation: US$165.99k
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$1.545b
- Shares outstanding: 18.27m
- Website: https://www.tennantco.com
Number of Employees
Location
- Tennant Company
- 701 North Lilac Drive
- Minneapolis
- Minnesota
- 55422
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TNC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1980 |
| TN1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1980 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/20 23:47 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.