Tennant Co (TNC) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: 1.41%
• Average Volume (3M): 126.52K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.99
• Revenue Growth: 1.35%
• EPS Growth: -40.63%
• Country: US
• Employees: 4,500
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 1.12
• Shares Outstanding: 18,653,505
• 10 Day Avg. Volume: 95,664
• 30 Day Avg. Volume: 126,523
• PEG Ratio: -1.21
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.87
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 2.42
• 1Y Price Target: $115.00
• Price Target Upside: 39.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $85.00 ▲(2.98%Upside)

Tennant Co's overall stock score is driven by its stable financial performance and positive technical indicators. While the company faces challenges such as revenue decline and margin pressures, its strong equity base and strategic investments provide a solid foundation for potential growth. The valuation is fair, and the cautious earnings outlook tempers the bullish technical trend.

Tennant Co Business Overview & Revenue Model

Company Description

Tennant Company, together with its subsidiaries, 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 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, IPC, Gaomei, and Rongen 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. It markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

How the Company Makes Money

Tennant Company generates revenue primarily through the sale of its cleaning equipment and technologies, which are distributed via a direct sales force and a network of authorized distributors globally. The company also offers a variety of services including equipment leasing, maintenance, and repair, which provide a steady stream of recurring revenue. Additionally, Tennant benefits from selling replacement parts and consumables, such as brushes and cleaning pads, which are essential for the operation and upkeep of its equipment. Strategic partnerships and collaborations with other industry players further enhance Tennant's market presence and contribute to its earnings.

Tennant Co Financial Statement Overview

Summary

Tennant Co demonstrates stable profitability with a solid gross profit margin and decent EBIT and EBITDA margins. However, there is a slight revenue decline and a decrease in free cash flow, which could impact future investments. The balance sheet reflects moderate leverage and a strong equity base, showcasing financial stability.

Income Statement

Tennant Co's income statement shows stable profitability with a solid gross profit margin of 42.1% for TTM. The net profit margin is at 5.4%, indicating healthy bottom-line performance. However, there is a slight revenue decline of 1.6% in the latest TTM compared to the previous year. EBIT and EBITDA margins are decent at 7.7% and 11.3%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a balanced capital structure with a debt-to-equity ratio of 0.40, indicating moderate leverage. The return on equity stands at 10.95%, showcasing reasonable returns for shareholders. The equity ratio is robust at 52.9%, suggesting a strong equity base relative to total assets. Overall, the balance sheet demonstrates stability and financial strength.

Cash Flow

Cash flow analysis shows a moderate free cash flow to net income ratio of 0.89, indicating effective cash conversion. The operating cash flow to net income ratio is 1.26, demonstrating strong cash generation capabilities. However, there is a 10.4% decline in free cash flow compared to the previous year, which could impact future investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.24B	1.09B	1.09B	1.00B
Gross Profit	550.00M	527.80M	420.90M	438.00M	407.80M
EBITDA	175.20M	188.40M	136.30M	137.00M	117.10M
Net Income	83.70M	109.50M	66.30M	64.90M	33.70M
Balance Sheet
Total Assets	1.19B	1.11B	1.09B	1.06B	1.08B
Cash, Cash Equivalents and Short-Term Investments	99.60M	117.10M	77.40M	123.60M	141.00M
Total Debt	254.30M	242.40M	317.40M	293.00M	337.20M
Total Liabilities	568.00M	535.10M	613.00M	626.60M	676.50M
Stockholders Equity	620.80M	577.00M	470.80M	433.80M	404.80M
Cash Flow
Free Cash Flow	68.30M	164.40M	-54.40M	46.20M	103.80M
Operating Cash Flow	89.70M	188.40M	-25.10M	69.40M	133.80M
Investing Cash Flow	-78.40M	-23.20M	-24.50M	1.70M	-29.90M
Financing Cash Flow	-25.20M	-122.60M	8.10M	-84.50M	-42.80M

Tennant Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNC, the sentiment is Positive. The current price of 82.54 is above the 20-day moving average (MA) of 81.74, above the 50-day MA of 77.95, and above the 200-day MA of 81.28, indicating a bullish trend. The MACD of 1.18 indicates Positive momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 69.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNC.

Tennant Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THR	79 Outperform	$944.77M	18.00	11.03%	―	0.72%	3.69%
GRC	73 Outperform	$1.09B	20.94	13.70%	1.79%	2.60%	51.33%
TNC	71 Outperform	$1.54B	23.06	11.04%	1.41%	1.35%	-40.63%
SXI	69 Neutral	$1.99B	35.50	8.37%	0.76%	9.64%	-24.68%
HLIO	68 Neutral	$1.25B	33.78	4.27%	0.98%	-5.39%	12.14%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
HI	54 Neutral	$1.46B	―	-18.22%	4.33%	0.31%	-423.59%