Tennant Co. (TNC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Oceaneering International, Inc.

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Helios Technologies, Inc.

Modine Manufacturing Co.

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Enerpac Tool Group Corp.

Kadant Inc.

Barnes Group, Inc.

Kulicke & Soffa Industries, Inc.

Tennant Co.

Why is Tennant Co. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.77% over the last 5 years

Negative results in Jun 25

NET PROFIT(HY) At USD 37.39 MM has Grown at -27.9%
ROCE(HY) Lowest at 9.51%
INTEREST(Q) At USD 5.9 MM has Grown at 78.79%

With ROCE of 15.86%, it has a expensive valuation with a 2.01 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.59%, its profits have fallen by -22.2%

Below par performance in long term as well as near term

Along with generating -8.59% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tennant Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tennant Co.

-17.56%

-0.77

28.27%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.94%

EBIT Growth (5y)

7.11%

EBIT to Interest (avg)

7.48

Debt to EBITDA (avg)

1.01

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.51

Tax Ratio

21.29%

Dividend Payout Ratio

25.89%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.57%

ROE (avg)

15.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.73

EV to EBIT

11.95

EV to EBITDA

7.70

EV to Capital Employed

1.60

EV to Sales

1.00

PEG Ratio

Dividend Yield

2.06%

ROCE (Latest)

13.37%

ROE (Latest)

11.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.87

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.72%

RAW MATERIAL COST(Y)

Fallen by -0.7% (YoY

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 88.3 MM

ROCE(HY)

Lowest at 8.51%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.54 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.87 times

PRE-TAX PROFIT(Q)

At USD 19.9 MM has Fallen at -19.68%

NET PROFIT(Q)

At USD 15.28 MM has Fallen at -24.76%

Here's what is working for Tennant Co.

Dividend per share

Highest at USD 4.87 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 36.72%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tennant Co.

Operating Cash Flow

Lowest at USD 88.3 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 19.9 MM has Fallen at -19.68%

over average net sales of the previous four periods of USD 24.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 15.28 MM has Fallen at -24.76%

over average net sales of the previous four periods of USD 20.31 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 3.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio