A Business at a Glance
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TENNANT CO
TNC
$1.6B
Mkt Cap
$87.77
+1.09%
TENNANT CO (TNC) has a current P/E ratio of 37.2, compared to its historical median P/E of 24.3. The stock is currently considered Expensive based on its historical valuation range.
TENNANT CO (TNC) has a 5-year average return on invested capital (ROIC) of 12.5%. This indicates solid capital allocation.
TENNANT CO (TNC) has a market capitalization of $1.5B. It is classified as a small-cap stock.
Yes, TENNANT CO (TNC) pays a dividend with a trailing twelve-month yield of 1.46%. The company also returns capital through share buybacks, with a buyback yield of 8.58%.
Based on historical P/E analysis, TENNANT CO (TNC) appears expensive. The current P/E of 37.2 is 53% above its historical median of 24.3. The estimated fair value CAGR (P/E method) is 15.9%.
TENNANT CO (TNC) operates in the Refrigeration & Service Industry Machinery industry, within the Industrials sector.
TENNANT CO (TNC) reported annual revenue of $1.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
General Development of Business Founded in 1870 by George H. Tennant, Tennant Company ("the Company, we, us, or our"), headquartered in Eden Prairie, Minnesota, is a world leader in designing, manufacturing and marketing of solutions that help create a cleaner, safer and healthier world. Tennant was incorporated as a Minnesota corporation in 1909 and began as a one-man woodworking business, eventually evolving into a successful wood flooring and wood products company, and finally into a manufacturer of floor cleaning equipment. Throughout its history, the Company has remained focused on advancing its industry by aggressively pursuing new technologies and creating a culture that celebrates innovation. Today, the Company has 11 global manufacturing locations and operates in three geographic areas including the Americas, Europe, Middle East and Africa ("EMEA") and Asia Pacific ("APAC").
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.2B | 1.2B | 1.3B | 1.2B | 1.1B | 1.1B |
| Net Income | 31M | 44M | 84M | 110M | 66M | 65M |
| EPS | $1.67 | $2.36 | $4.38 | $5.83 | $3.55 | $3.44 |
| Free Cash Flow | 16M | 43M | 69M | 166M | -50M | 50M |
| ROIC | 5.0% | 6.8% | 12.9% | 17.6% | 11.2% | 13.9% |
| Gross Margin | 39.5% | 40.2% | 42.7% | 42.4% | 38.5% | 40.2% |
| Debt/Equity | 0.68 | 0.55 | 0.41 | 0.42 | 0.71 | 0.71 |
| Dividends/Share | $1.28 | $1.20 | $1.14 | $1.08 | $1.02 | $0.94 |
| Operating Income | 54M | 68M | 114M | 139M | 87M | 94M |
| Operating Margin | 4.4% | 5.7% | 8.9% | 11.1% | 8.0% | 8.6% |
| ROE | 5.8% | 7.2% | 14.0% | 20.9% | 14.7% | 15.5% |
| Shares Outstanding | 17M | 19M | 19M | 19M | 19M | 19M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 822M | 812M | 809M | 1.0B | 1.1B | 1.1B | 1.0B | 1.1B | 1.1B | 1.2B | 1.3B | 1.2B | 1.2B |
| Gross Margin | 42.9% | 43.0% | 43.5% | 39.9% | 39.6% | 40.6% | 40.7% | 40.2% | 38.5% | 42.4% | 42.7% | 40.2% | 39.5% |
| R&D | 29M | 32M | 35M | 32M | 31M | 33M | 30M | 32M | 31M | 37M | 44M | 41M | 42M |
| SG&A | 251M | 252M | 249M | 335M | 356M | 357M | 314M | 322M | 306M | 353M | 392M | 375M | 382M |
| EBIT | 72M | 53M | 68M | 33M | 58M | 72M | 64M | 94M | 87M | 139M | 114M | 68M | 54M |
| Op. Margin | 8.8% | 6.6% | 8.4% | 3.3% | 5.2% | 6.3% | 6.4% | 8.6% | 8.0% | 11.1% | 8.9% | 5.7% | 4.4% |
| Net Income | 51M | 32M | 47M | -6.2M | 33M | 46M | 34M | 65M | 66M | 110M | 84M | 44M | 31M |
| Net Margin | 6.2% | 4.0% | 5.8% | -0.6% | 3.0% | 4.0% | 3.4% | 5.9% | 6.1% | 8.8% | 6.5% | 3.6% | 2.6% |
| Non-Recurring | 0 | 622K | -149K | 0 | 1.0M | 6.1M | 6.2M | 14M | 7.8M | 3.2M | 8.8M | 8.8M | 8.1M |
| Returns on Capital | |||||||||||||
| ROIC | 21.3% | 15.5% | 17.9% | 3.4% | 7.0% | 9.7% | 8.7% | 13.9% | 11.2% | 17.6% | 12.9% | 6.8% | 5.0% |
| ROE | 18.6% | 12.0% | 17.6% | -2.2% | 10.9% | 13.6% | 8.8% | 15.5% | 14.7% | 20.9% | 14.0% | 7.2% | 5.8% |
| ROA | 10.7% | 7.0% | 10.3% | -0.8% | 3.4% | 4.5% | 3.1% | 6.1% | 6.2% | 10.0% | 7.3% | 3.6% | 2.4% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 59M | 45M | 58M | 54M | 80M | 72M | 134M | 69M | -25M | 188M | 90M | 65M | 34M |
| Free Cash Flow | 40M | 20M | 31M | 34M | 61M | 34M | 104M | 50M | -50M | 166M | 69M | 43M | 16M |
| Owner Earnings | 32M | 19M | 36M | 5.0M | 17M | 6.1M | 74M | 6.8M | -82M | 126M | 23M | -4.1M | -237M |
| CapEx | 20M | 25M | 27M | 20M | 19M | 38M | 30M | 19M | 25M | 23M | 21M | 22M | 18M |
| Maint. CapEx | 20M | 18M | 18M | 43M | 54M | 54M | 53M | 53M | 49M | 51M | 55M | 59M | 262M |
| Growth CapEx | 0 | 6.7M | 8.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 20M | 18M | 18M | 43M | 54M | 54M | 53M | 53M | 49M | 51M | 55M | 59M | 262M |
| CapEx/OCF | 33.0% | 54.8% | 45.8% | 37.7% | 23.5% | 53.4% | 22.3% | 28.0% | N/A | 12.1% | 23.3% | 33.4% | 52.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 14M | 14M | 14M | 15M | 15M | 16M | 16M | 18M | 19M | 20M | 21M | 22M | 22M |
| Dividend Yield | 1.3% | 1.4% | 1.5% | 1.4% | 1.3% | 1.4% | 1.4% | 1.3% | 1.6% | 1.5% | 1.2% | 1.5% | 1.5% |
| Share Buybacks | 14M | 46M | 13M | 0 | 0 | 0 | 0 | 15M | 5.0M | 22M | 20M | 89M | 128M |
| Buyback Yield | 1.2% | 5.0% | 1.1% | N/A | N/A | N/A | N/A | 1.0% | 0.5% | 1.3% | 1.3% | 6.4% | 8.6% |
| Stock-Based Comp | 7.3M | 8.2M | 3.9M | 5.9M | 8.3M | 11M | 6.0M | 9.5M | 7.8M | 12M | 12M | 10M | 8.7M |
| Debt Repayment | 2.0M | 3.4M | 3.5M | 96M | 38M | 42M | 158M | 362M | 19M | 120M | 43M | 11M | 11M |
| Balance Sheet | |||||||||||||
| Net Debt | -65M | -27M | -22M | 621M | 273M | 312M | 196M | 186M | 255M | 125M | 141M | 213M | 264M |
| Cash & Equiv. | 93M | 51M | 58M | 58M | 86M | 75M | 141M | 124M | 77M | 117M | 100M | 106M | 94M |
| Long-Term Debt | 25M | 21M | 33M | 346M | 328M | 308M | 298M | 263M | 295M | 194M | 198M | 273M | 358M |
| Debt/Equity | 0.10 | 0.10 | 0.13 | 2.29 | 1.14 | 1.07 | 0.83 | 0.71 | 0.71 | 0.42 | 0.41 | 0.55 | 0.68 |
| Interest Coverage | 41.9 | 40.5 | 53.4 | 1.3 | 2.5 | 4.0 | 3.7 | 12.8 | 11.5 | 8.1 | 8.4 | 5.6 | 5.6 |
| Equity | 281M | 252M | 279M | 297M | 314M | 360M | 405M | 434M | 471M | 577M | 621M | 602M | 531M |
| Total Assets | 487M | 432M | 470M | 994M | 993M | 1.1B | 1.1B | 1.1B | 1.1B | 1.1B | 1.2B | 1.3B | 1.3B |
| Total Liabilities | 206M | 180M | 191M | 696M | 676M | 702M | 677M | 627M | 613M | 535M | 568M | 666M | 744M |
| Intangibles | 16M | 3.2M | 6.5M | 172M | 147M | 138M | 126M | 98M | 76M | 63M | 59M | 53M | 53M |
| Retained Earnings | 286M | 294M | 318M | 297M | 316M | 346M | 363M | 411M | 458M | 547M | 610M | 628M | 562M |
| Working Capital | 201M | 160M | 165M | 187M | 220M | 206M | 239M | 237M | 314M | 295M | 284M | 307M | 322M |
| Current Assets | 347M | 294M | 298M | 423M | 469M | 481M | 494M | 527M | 575M | 569M | 577M | 600M | 611M |
| Current Liabilities | 146M | 133M | 133M | 237M | 249M | 275M | 254M | 290M | 262M | 274M | 292M | 293M | 289M |
| Per Share Data | |||||||||||||
| EPS | 2.70 | 1.74 | 2.59 | -0.35 | 1.82 | 2.48 | 1.81 | 3.44 | 3.55 | 5.83 | 4.38 | 2.36 | 1.67 |
| Owner EPS | 1.70 | 1.03 | 1.98 | 0.28 | 0.94 | 0.33 | 4.00 | 0.36 | -4.37 | 6.69 | 1.19 | -0.22 | -13.90 |
| Book Value | 14.96 | 13.68 | 15.48 | 16.74 | 17.13 | 19.49 | 21.74 | 22.99 | 25.21 | 30.72 | 32.49 | 32.41 | 31.18 |
| Cash Flow/Share | 3.16 | 2.45 | 3.22 | 3.06 | 4.36 | 3.89 | 7.19 | 3.68 | -1.34 | 10.03 | 4.69 | 3.50 | 17.21 |
| Dividends/Share | 0.78 | 0.80 | 0.81 | 0.84 | 0.83 | 0.88 | 0.89 | 0.94 | 1.02 | 1.08 | 1.14 | 1.20 | 1.28 |
| Shares Out. | 18.8M | 18.4M | 18.0M | 17.7M | 18.4M | 18.5M | 18.6M | 18.9M | 18.7M | 18.8M | 19.1M | 18.6M | 17.0M |
| Valuation | |||||||||||||
| P/E Ratio | 23.6 | 28.9 | 24.3 | N/A | 25.5 | 29.0 | 35.8 | 22.3 | 16.2 | 15.4 | 18.1 | 31.8 | 52.5 |
| P/FCF | 30.0 | 45.4 | 36.2 | 34.2 | 13.9 | 39.6 | 11.6 | 29.0 | N/A | 10.2 | 22.0 | 32.2 | 91.7 |
| EV/EBIT | 14.4 | 16.0 | 15.4 | 43.8 | 19.8 | 22.6 | 21.7 | 17.0 | 14.9 | 12.8 | 14.1 | 22.8 | 32.8 |
| Price/Book | 4.3 | 3.7 | 4.1 | 3.9 | 2.7 | 3.7 | 3.0 | 3.3 | 2.3 | 2.9 | 2.4 | 2.3 | 2.8 |
| Price/Sales | 1.3 | 1.2 | 1.2 | 1.1 | 1.0 | 1.0 | 1.1 | 1.3 | 1.1 | 1.1 | 1.4 | 1.2 | 1.2 |
| FCF Yield | 3.3% | 2.2% | 2.8% | 2.9% | 7.2% | 2.5% | 8.6% | 3.5% | -4.7% | 9.8% | 4.5% | 3.1% | 1.1% |
| Market Cap | 1.2B | 928M | 1.1B | 1.2B | 851M | 1.3B | 1.2B | 1.4B | 1.1B | 1.7B | 1.5B | 1.4B | 1.5B |
| Avg. Price | 57.89 | 54.26 | 51.72 | 61.44 | 63.39 | 60.16 | 61.48 | 72.98 | 63.48 | 73.32 | 96.32 | 78.14 | 87.77 |
| Year-End Price | 63.69 | 50.30 | 63.04 | 65.31 | 46.40 | 71.91 | 64.81 | 76.73 | 57.37 | 89.89 | 79.16 | 75.05 | 87.77 |
TENNANT CO passes 6 of 9 quality checks, suggesting mixed fundamentals.
TENNANT CO trades at 37.2x trailing earnings, compared to its 15-year median P/E of 24.3x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 36.2x vs a median of 29.0x. The company's 5-year average ROIC is 12.5% with a gross margin of 40.8%. Total shareholder yield (dividends + buybacks) is 10.0%. At current prices, the estimated annualized return to fair value is +4.2%.
TENNANT CO (TNC) has a net profit margin of 3.6%. This is a modest margin.
TENNANT CO (TNC) generated $43 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TENNANT CO (TNC) has a debt-to-equity ratio of 0.55. This indicates moderate leverage.
TENNANT CO (TNC) reported earnings per share (EPS) of $2.36 in its most recent fiscal year.
TENNANT CO (TNC) has a return on equity (ROE) of 7.2%. This indicates moderate shareholder returns.
TENNANT CO (TNC) has a 5-year average gross margin of 40.8%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for TENNANT CO (TNC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TENNANT CO (TNC) has a book value per share of $32.41, based on its most recent annual SEC filing.