Tennant Co (TNC) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 1.45%
• Average Volume (3M): 80.12K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.02
• 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: 18,469,130
• 10 Day Avg. Volume: 61,566
• 30 Day Avg. Volume: 80,122
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $103.33
• Price Target Upside: 28.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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, primarily serving the commercial and industrial sectors. Founded in 1870 and headquartered in Minneapolis, Minnesota, Tennant specializes in innovative cleaning technologies, including floor scrubbers, sweepers, and outdoor cleaning machines. The company also offers a range of sustainable cleaning solutions, emphasizing environmentally friendly products and practices. Tennant operates globally, catering to a diverse clientele that includes retail, healthcare, education, and manufacturing industries.

How the Company Makes Money

Tennant generates revenue primarily through the sale of its cleaning equipment and solutions. The company has a diversified revenue model that includes direct sales of machines, aftermarket parts, and consumables, as well as service agreements for maintenance and support. Key revenue streams include new equipment sales, which account for a significant portion of total revenue, and recurring revenue from service contracts and replacement parts. Additionally, Tennant benefits from strategic partnerships with distributors and service providers, enhancing its market reach and customer engagement. The company also invests in research and development to innovate and expand its product offerings, which contributes to its competitive advantage and overall earnings.

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, and while cash flow generation is weak, the company still generates positive free cash flow.

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	112.90M	175.20M	188.40M	136.30M	137.00M	117.10M
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	117.10M	77.40M	123.60M	141.00M
Total Debt	272.60M	254.30M	242.40M	317.40M	293.00M	337.20M
Total Liabilities	332.70M	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	61.60M	68.30M	164.40M	-54.40M	46.20M	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: Negative
• Last Price: 80.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNC, the sentiment is Negative. The current price of 80.69 is above the 20-day moving average (MA) of 80.07, below the 50-day MA of 81.01, and above the 200-day MA of 79.59, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 29.14 is Positive, neither overbought nor oversold. The STOCH value of 26.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNC.

Tennant Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRC	76 Outperform	$1.18B	23.36	13.01%	1.59%	3.19%	31.51%
SXI	73 Outperform	$2.78B	52.49	7.72%	0.52%	18.51%	-28.69%
HLIO	73 Outperform	$1.84B	54.67	3.75%	0.65%	-1.46%	-10.03%
THR	69 Neutral	$937.72M	17.96	10.88%	―	-2.16%	9.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TNC	59 Neutral	$1.39B	25.80	8.51%	1.45%	-2.24%	-48.77%
HI	57 Neutral	$2.23B	-124.19	-1.50%	2.85%	-7.93%	91.44%

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.