NYSE:TNC

Stock Analysis Report

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Executive Summary

Tennant Company designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Proven track record and fair value.


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

0.8%

TNC

-0.7%

US Machinery

-0.7%

US Market


1 Year Return

-2.6%

TNC

-6.9%

US Machinery

5.3%

US Market

Return vs Industry: TNC exceeded the US Machinery industry which returned -8.3% over the past year.

Return vs Market: TNC underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

TNCIndustryMarket
7 Day0.8%-0.7%-0.7%
30 Day2.2%2.1%4.6%
90 Day10.1%14.0%14.0%
1 Year-1.3%-2.6%-5.1%-6.9%7.6%5.3%
3 Year-11.1%-14.5%9.9%2.7%34.9%26.1%
5 Year6.8%0.2%49.1%31.3%62.3%44.7%

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

Valuation

Is Tennant undervalued compared to its fair value and its price relative to the market?

25.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TNC ($64.21) is trading below our estimate of fair value ($85.8)

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 (25.6x) compared to the US Machinery industry average (18.8x).

PE vs Market: TNC is poor value based on its PE Ratio (25.6x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: TNC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: TNC is overvalued based on its PB Ratio (3.3x) compared to the US Machinery industry average (1.9x).


Next Steps

Future Growth

How is Tennant forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNC's forecast earnings growth (29.1% per year) is above the savings rate (2.2%).

Earnings vs Market: TNC's earnings (29.1% per year) are forecast to grow faster than the US market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TNC's revenue (3.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: TNC's revenue (3.7% 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


Next Steps

Past Performance

How has Tennant performed over the past 5 years?

-3.8%

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%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: TNC's earnings have declined by -3.8% per year over the past 5 years.

Accelerating Growth: TNC's earnings growth over the past year (28.4%) exceeds its 5-year average (-3.8% per year).

Earnings vs Industry: TNC earnings growth over the past year (28.4%) exceeded the Machinery industry -5.4%.


Return on Equity

High ROE: TNC's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is Tennant's financial position?


Financial Position Analysis

Short Term Liabilities: TNC's short term assets ($585.2M) exceed its short term liabilities ($225.1M).

Long Term Liabilities: TNC's short term assets ($585.2M) exceed its long term liabilities ($566.4M).


Debt to Equity History and Analysis

Debt Level: TNC's debt to equity ratio (129.2%) is considered high.

Reducing Debt: TNC's debt to equity ratio has increased from 9.5% to 129.2% over the past 5 years.

Debt Coverage: TNC's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: TNC's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TNC's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: TNC's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (4.6%).


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 (35.1%), TNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

H. Killingstad (64yo)

14.58yrs

Tenure

US$4,923,183

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 ($USD4.92M) is above average for companies of similar size in the US market ($USD3.17M).

Compensation vs Earnings: H.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
H. Killingstad
President14.58yrsUS$4.92m0.91% $10.8m
David Huml
Chief Operating Officer2.08yrsUS$1.41m0.061% $721.5k
Richard Zay
Senior Vice President of Technology & Innovation0.33yrUS$1.38m0.14% $1.7m
Keith Woodward
Executive Officer0.50yrUS$1.50m0.068% $810.6k
Andrew Cebulla
VP of Finance & Corporate Controller and Interim CFO & Principal Accounting Officer0.50yrno data0.011% $130.1k
Carol McKnight
Senior VP & Chief Administrative Officer3.5yrsUS$1.12m0.053% $622.8k
William Prate
Senior Director of Investor Relationsno datano datano data
Kathryn Lovik
Global Communications Director16.25yrsno datano data
Thomas Stueve
VP of Global Tax5.83yrsno datano data
David Cox
Executive Officerno datano datano data

2.8yrs

Average Tenure

52yo

Average Age

Experienced Management: TNC's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
H. Killingstad
President14.58yrsUS$4.92m0.91% $10.8m
Donal Mulligan
Independent Director11.5yrsUS$205.01k0.056% $661.0k
Carol Eicher
Independent Director11.92yrsUS$191.01k0.080% $943.0k
David Wichmann
Independent Director10.92yrsUS$196.01k0.069% $819.8k
William Austen
Independent Director13.42yrsUS$196.01k0.12% $1.5m
Steven Sonnenberg
Lead Independent Director3.92yrsUS$255.01k0.090% $1.1m
David Windley
Independent Director4.42yrsUS$196.01k0.026% $309.0k
Maria Green
Independent Director1.33yrsUS$203.24k0.010% $122.7k
Azita Arvani
Independent Director7.75yrsUS$186.01k0.042% $497.2k

10.9yrs

Average Tenure

61yo

Average Age

Experienced Board: TNC's board of directors are seasoned and experienced ( 10.9 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.


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$1.184b
  • Shares outstanding: 18.44m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
TN1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 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 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, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 00:00
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.