NYSE:TNC

Stock Analysis Report

Executive Summary

Tennant Company designs, manufactures, and markets floor cleaning equipment worldwide.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.

Risks

  • Tennant is covered by less than 3 analysts.

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


Market Performance


7 Day Return

5.8%

NYSE:TNC

3.1%

US Machinery

1.1%

US Market


1 Year Return

-4.1%

NYSE:TNC

-3.4%

US Machinery

2.1%

US Market

TNC underperformed the Machinery industry which returned -2.2% over the past year.

TNC underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

TNCIndustryMarket
7 Day5.8%3.1%1.1%
30 Day4.4%9.1%3.7%
90 Day17.2%1.8%2.3%
1 Year-2.7%-4.1%-1.4%-3.4%4.4%2.1%
3 Year17.6%13.2%52.7%42.8%47.0%37.4%
5 Year13.2%6.1%55.6%36.3%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

21%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Tennant is poor value based on expected growth next year.


Price Based on Value of Assets

Tennant is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Tennant expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tennant's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Tennant's earnings are expected to grow significantly at over 20% yearly.

Tennant's revenue growth is positive but not above the United States of America market average.

Tennant's earnings growth is expected to exceed the United States of America market average.

Tennant's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Tennant will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Tennant performed over the past 5 years?

-17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (130% vs -17%)

Tennant's earnings growth has exceeded the US Machinery industry average in the past year (130% vs 18.7%).


Return on Equity

Tennant has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Tennant used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Tennant's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Tennant's financial position?


Financial Position Analysis

Tennant is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Tennant's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Tennant's level of debt (105.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (10.4% vs 105.6% today).

Debt is not well covered by operating cash flow (18.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.22%

Current Dividend Yield


Dividend Yield and Payments Analysis

Tennant's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Tennant's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are well covered by earnings (2.4x 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.


Next Steps

Management

What is the CEO of Tennant's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

H. Killingstad (63yo)

13.8yrs

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

H.'s remuneration is about average for companies of similar size in United States of America.

H.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.9yrs

Average Tenure

53yo

Average Age

The tenure for the Tennant management team is about average.


Board Age and Tenure

10.1yrs

Average Tenure

60yo

Average Age

The average tenure for the Tennant board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Karen Durant (59yo)

    VP & Controller

    • Tenure: 12yrs
  • David Cox (81yo)

    Executive Officer

    • Tenure: 0yrs
  • H. Killingstad (63yo)

    President

    • Tenure: 13.8yrs
    • Compensation: US$4.24m
  • Kathryn Lovik

    Global Communications Director

    • Tenure: 15.4yrs
  • Keith Woodward (55yo)

    Senior VP & CFO

    • Tenure: 0.8yrs
    • Compensation: US$922.36k
  • Rusty Zay (48yo)

    Senior Vice President of the Americas and Research & Development

    • Tenure: 5.2yrs
    • Compensation: US$1.53m
  • Mary Talbott (50yo)

    Senior VP

    • Tenure: 0.7yrs
  • Carol McKnight (51yo)

    Senior VP & Chief Administrative Officer

    • Tenure: 2.7yrs
    • Compensation: US$1.12m
  • Thomas Stueve

    VP of Global Tax & Treasury and Treasurer

    • Tenure: 0yrs
  • David Huml (50yo)

    Senior Vice President of EMEA

    • Tenure: 1.3yrs
    • Compensation: US$1.41m

Board Members

  • Don Mulligan (58yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$184.99k
  • H. Killingstad (63yo)

    President

    • Tenure: 13.8yrs
    • Compensation: US$4.24m
  • Carol Eicher (60yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$170.99k
  • Dave Wichmann (56yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$175.99k
  • Bill Austen (60yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$175.99k
  • Steve Sonnenberg (66yo)

    Lead Director

    • Tenure: 3.1yrs
    • Compensation: US$194.99k
  • David Windley (55yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$175.99k
  • Maria Green (66yo)

    Director

    • Tenure: 0.5yrs
  • Azita Arvani (56yo)

    Independent Director

    • Tenure: 6.9yrs
    • 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$1.315b
  • Shares outstanding: 18.21m
  • Website: https://www.tennantco.com

Number of Employees


Location

  • Tennant Company
  • 701 North Lilac Drive
  • Minneapolis
  • Minnesota
  • 55422
  • 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 worldwide. The company offers a suite of products, including floor maintenance and outdoor cleaning equipment, detergent-free and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:41
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.