Tennant
Market Cap
US$1.4b
Last Updated
2021/01/21 23:29 UTC
Data Sources
Company Financials +
Executive Summary
Tennant Company designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet average dividend payer.
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 +/- 5% a week.
Volatility Over Time: TNC's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.7%
TNC
-0.3%
US Machinery
1.4%
US Market
1 Year Return
-10.9%
TNC
25.9%
US Machinery
22.6%
US Market
Return vs Industry: TNC underperformed the US Machinery industry which returned 26% over the past year.
Return vs Market: TNC underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| TNC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | -0.3% | 1.4% |
| 30 Day | 9.0% | 7.3% | 4.9% |
| 90 Day | 19.3% | 16.1% | 14.6% |
| 1 Year | -9.7%-10.9% | 29.0%25.9% | 25.4%22.6% |
| 3 Year | 10.4%6.2% | 30.0%20.8% | 46.8%37.0% |
| 5 Year | 49.3%40.0% | 177.2%146.7% | 132.0%106.1% |
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
3 days ago | Simply Wall St
Here's Why Tennant (NYSE:TNC) Can Manage Its Debt Responsibly2 weeks ago | Simply Wall St
Should You Use Tennant's (NYSE:TNC) Statutory Earnings To Analyse It?1 month ago | Simply Wall St
Are Robust Financials Driving The Recent Rally In Tennant Company's (NYSE:TNC) Stock?Valuation
Is Tennant undervalued compared to its fair value and its price relative to the market?
26.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TNC ($74.01) is trading below our estimate of fair value ($100.57)
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 (32.1x) compared to the US Machinery industry average (32.7x).
PE vs Market: TNC is poor value based on its PE Ratio (32.1x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: TNC is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: TNC is overvalued based on its PB Ratio (3.5x) compared to the US Machinery industry average (3x).
Next Steps
Future Growth
How is Tennant forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
20.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TNC's forecast earnings growth (20.6% per year) is above the savings rate (2%).
Earnings vs Market: TNC's earnings (20.6% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TNC's revenue (4% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: TNC's revenue (4% 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 (12.5%).
Next Steps
Past Performance
How has Tennant performed over the past 5 years?
6.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TNC has a large one-off loss of $16.4M impacting its September 30 2020 financial results.
Growing Profit Margin: TNC's current net profit margins (4.1%) are higher than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: TNC's earnings have grown by 6.5% 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 (-0.8%) over the past year, making it difficult to compare to the Machinery industry average (-15.5%).
Return on Equity
High ROE: TNC's Return on Equity (10.7%) is considered low.
Next Steps
Financial Health
How is Tennant's financial position?
Financial Position Analysis
Short Term Liabilities: TNC's short term assets ($491.3M) exceed its short term liabilities ($244.3M).
Long Term Liabilities: TNC's short term assets ($491.3M) exceed its long term liabilities ($423.9M).
Debt to Equity History and Analysis
Debt Level: TNC's debt to equity ratio (81.8%) is considered high.
Reducing Debt: TNC's debt to equity ratio has increased from 10% to 81.8% over the past 5 years.
Debt Coverage: TNC's debt is well covered by operating cash flow (38.1%).
Interest Coverage: TNC's interest payments on its debt are well covered by EBIT (5.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Tennant current dividend yield, its reliability and sustainability?
1.24%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TNC's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: TNC's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.86%).
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 (38.2%), 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 (25.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
H. Killingstad (64 yo)
15.08yrs
Tenure
US$4,923,183
Compensation
Mr. H. Chris Killingstad has been the Chief Executive Officer and President of Tennant Company since December 1, 2005 and has been its Director since October 6, 2005. Mr. Killingstad serves as a Director o...
CEO Compensation Analysis
Compensation vs Market: H.'s total compensation ($USD4.92M) is about average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: H.'s compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 15.08yrs | US$4.92m | 0.83% $ 11.3m | |
| Senior VP & COO | 2.58yrs | US$1.41m | 0.058% $ 795.3k | |
| Senior Vice President of Technology & Innovation | 0.83yr | US$1.38m | 0.029% $ 389.8k | |
| Interim Chief Financial Officer | no data | US$1.53m | no data | |
| Senior VP & Chief Administrative Officer | 4yrs | US$1.12m | 0.052% $ 717.8k | |
| Senior Director of Finance & Investor Relations | no data | no data | no data | |
| Senior VP | 0.50yr | no data | 0.0064% $ 87.9k | |
| Global Communications Director | 16.75yrs | no data | no data | |
| Senior Vice President of Global Operations | 0.17yr | no data | 0.018% $ 250.2k | |
| VP of Global Tax | 6.33yrs | no data | no data | |
| Executive Officer | no data | no data | no data |
3.3yrs
Average Tenure
58yo
Average Age
Experienced Management: TNC's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 15.08yrs | US$4.92m | 0.83% $ 11.3m | |
| Independent Director | 12yrs | US$205.01k | 0.056% $ 761.8k | |
| Independent Director | 12.42yrs | US$191.01k | 0.083% $ 1.1m | |
| Independent Director | 11.42yrs | US$196.01k | 0.069% $ 944.9k | |
| Independent Director | 13.92yrs | US$196.01k | 0.12% $ 1.7m | |
| Lead Independent Director | 4.42yrs | US$255.01k | 0.090% $ 1.2m | |
| Independent Director | 4.92yrs | US$196.01k | 0.026% $ 356.2k | |
| Independent Director | 1.83yrs | US$203.24k | 0.010% $ 141.4k | |
| Independent Director | 8.25yrs | US$186.01k | 0.042% $ 573.1k |
11.4yrs
Average Tenure
61yo
Average Age
Experienced Board: TNC's board of directors are seasoned and experienced ( 11.4 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$1.367b
- Shares outstanding: 18.47m
- Website: https://www.tennantco.com
Number of Employees
Location
- Tennant Company
- 701 North Lilac Drive
- PO Box 1452
- Minneapolis
- Minnesota
- 55440-1452
- 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 in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor m...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:29 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.