Tennant Co (TNC) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 1.45%
• Average Volume (3M): 92.86K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.94
• Revenue Growth: -2.24%
• EPS Growth: -48.77%
• Country: US
• Employees: 4,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.46
• Shares Outstanding: 18,125,969
• 10 Day Avg. Volume: 117,381
• 30 Day Avg. Volume: 92,856
• PEG Ratio: -0.74
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 22.43
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 12.42
• 1Y Price Target: $105.00
• Price Target Upside: 30.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.8
• Revenue Forecast (FY): $1.23B

• Rating: 59 Neutral
• Price Target: $79.00 ▼(-2.09% Downside)

Tennant Co's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and a high valuation. The earnings call provided some positive strategic insights, but the stock's current technical and valuation metrics suggest caution.

Tennant Co Business Overview & Revenue Model

Company Description

Tennant Company (TNC) is a leading manufacturer of cleaning equipment and solutions, specializing in innovative cleaning technologies for a wide range of industries. Headquartered in Minneapolis, Minnesota, Tennant operates in the industrial and commercial cleaning sectors, providing products such as floor cleaning machines, outdoor cleaning equipment, and surface treatment solutions. The company also emphasizes sustainability with eco-friendly cleaning solutions and advanced technologies designed to improve efficiency and reduce environmental impact.

How the Company Makes Money

Tennant generates revenue primarily through the sale of its cleaning equipment, which includes floor scrubbers, sweepers, and pressure washers. The company also offers a variety of cleaning solutions, including detergents and chemicals. Key revenue streams include direct product sales, service and maintenance contracts, and parts sales. Additionally, Tennant engages in leasing arrangements that provide customers with flexible payment options for acquiring equipment. The company has established significant partnerships with distributors and retailers, enhancing its market presence and accessibility. Factors contributing to its earnings include ongoing demand for industrial cleaning solutions, growth in e-commerce and logistics sectors, and increasing emphasis on hygiene in public spaces.

Tennant Co Financial Statement Overview

Summary

Tennant Co's financial performance is mixed. The income statement shows declining revenue growth and operational challenges, but profitability margins remain reasonable. The balance sheet is stable with moderate leverage, while cash flow generation shows weaknesses, particularly in free cash flow growth.

Income Statement

Tennant Co's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a reasonable gross profit margin of 41.8% and a net profit margin of 4.8%. The EBIT and EBITDA margins have decreased compared to previous years, reflecting potential operational challenges.

Balance Sheet

The balance sheet is relatively stable, with a debt-to-equity ratio of 0.38, indicating moderate leverage. The return on equity (ROE) is 9.5%, which is decent but has declined from previous years. The equity ratio stands at 51%, suggesting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some weaknesses, with a negative free cash flow growth rate in the TTM period. The operating cash flow to net income ratio is 0.33, indicating that cash generation from operations is not as strong as it could be. However, the free cash flow to net income ratio is 0.73, showing that the company is still generating positive free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.29B	1.24B	1.09B	1.09B	1.00B
Gross Profit	519.50M	550.00M	527.80M	420.90M	438.00M	407.80M
EBITDA	135.20M	169.00M	188.40M	135.30M	134.50M	111.90M
Net Income	54.80M	83.70M	109.50M	66.30M	64.90M	33.70M
Balance Sheet
Total Assets	1.26B	1.19B	1.11B	1.09B	1.06B	1.08B
Cash, Cash Equivalents and Short-Term Investments	99.40M	99.60M	116.90M	77.20M	123.10M	140.40M
Total Debt	273.00M	254.30M	242.40M	332.40M	309.40M	353.50M
Total Liabilities	614.20M	568.00M	535.10M	613.00M	626.60M	676.50M
Stockholders Equity	640.90M	620.80M	577.00M	470.80M	433.80M	404.80M
Cash Flow
Free Cash Flow	61.40M	68.30M	164.40M	-54.40M	46.30M	103.80M
Operating Cash Flow	88.30M	89.70M	188.40M	-25.10M	69.40M	133.80M
Investing Cash Flow	-27.60M	-78.40M	-23.20M	-24.50M	1.70M	-29.90M
Financing Cash Flow	-53.10M	-25.20M	-122.60M	8.10M	-84.50M	-42.80M

Tennant Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 80.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNC, the sentiment is Neutral. The current price of 80.69 is above the 20-day moving average (MA) of 74.93, above the 50-day MA of 78.49, and above the 200-day MA of 78.76, indicating a bearish trend. The MACD of -2.69 indicates Positive momentum. The RSI at 36.62 is Neutral, neither overbought nor oversold. The STOCH value of 18.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TNC.

Tennant Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THR	76 Outperform	$937.72M	17.96	11.74%	―	3.08%	35.81%
GRC	76 Outperform	$1.19B	23.59	13.01%	1.65%	3.19%	31.51%
SXI	73 Outperform	$2.78B	52.56	7.72%	0.57%	18.51%	-28.69%
HI	64 Neutral	$2.24B	52.10	3.07%	2.84%	-16.00%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HLIO	62 Neutral	$1.84B	54.67	3.75%	0.69%	-1.46%	-10.03%
TNC	59 Neutral	$1.30B	24.55	8.51%	1.45%	-2.24%	-48.77%

Tennant Co Corporate Events

Tennant Company Reports Resilient Q3 2025 Performance

Tennant Company, a leader in designing and manufacturing cleaning solutions for industrial and commercial environments, reported its third-quarter 2025 financial results, highlighting a challenging yet resilient performance amidst market uncertainties. The company, known for its sustainable cleaning technologies, operates globally with a strong service network.

Tennant Company Earnings Call: Growth Amid Challenges

The latest earnings call from Tennant Company was marked by a generally positive sentiment, reflecting strong order growth, successful new product launches, and effective pricing strategies. These positive developments are helping to counterbalance challenges such as a decline in organic sales, reduced net income, and pressures from tariffs. Despite these hurdles, the company remains optimistic about achieving its full-year guidance amid macroeconomic uncertainties.

Tennant Company Reports Q2 2025 Results Amid Challenges

Tennant Company, headquartered in Eden Prairie, Minnesota, is a global leader in designing and manufacturing cleaning solutions for industrial, commercial, and outdoor environments, with a strong emphasis on sustainable technologies.