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Tennant Co
(NYSE:TNC)
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Rating:46Neutral
Price Target:
$71.00
â–²(1.39% Upside)
Action:Reiterated
Date:09/07/26
The score is driven down primarily by weakening fundamentals—margin compression, rising leverage, and notably weak cash conversion with negative free cash flow—despite strong recent revenue growth and improving mix toward recurring service revenue. Technicals remain broadly bearish (below key longer-term averages with negative MACD), and valuation is a major headwind with a very high P/E that is hard to justify given current profitability and cash flow. A positive COO appointment provides limited offset.
Positive Factors
Strong TTM revenue growth
The 44.6% TTM revenue increase indicates strong recent demand and expanded commercial activity. Sustained top-line growth can support scale benefits, broaden the installed base, and create more opportunities for future parts, consumables, and service revenue.
Negative Factors
Material margin compression
Sharp declines in net and EBIT margins show that recent revenue growth is converting into less profit than in prior years. Persistently thinner margins would reduce reinvestment capacity, weaken earnings resilience, and leave results more exposed to cost, pricing, or mix pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong TTM revenue growth
The 44.6% TTM revenue increase indicates strong recent demand and expanded commercial activity. Sustained top-line growth can support scale benefits, broaden the installed base, and create more opportunities for future parts, consumables, and service revenue.
Read all positive factors
Tennant Co Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Breaks down sales by region (for example North America, EMEA, APAC), showing where Tennant is strongest and where it can expand. Geographic mix exposes currency and macro risks, regional demand cycles for commercial and industrial cleaning equipment, and potential growth markets that could drive future revenue.
Breaks down sales by region (for example North America, EMEA, APAC), showing where Tennant is strongest and where it can expand. Geographic mix exposes currency and macro risks, regional demand cycles for commercial and industrial cleaning equipment, and potential growth markets that could drive future revenue.
Data provided by:
The Fly
The FlyTennant Co (TNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.23B
Dividend Yield1.69%
Average Volume (3M)232.91K
Price to Earnings (P/E)73.4
Beta (1Y)0.80
Revenue Growth-2.91%
EPS Growth-68.31%
CountryUS
Employees4,484
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.00
Shares Outstanding17,049,303
10 Day Avg. Volume187,892
30 Day Avg. Volume232,911
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)2.25
Price to Sales (P/S)1.12
P/FCF Ratio31.26
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.27
Revenue Forecast (FY)$1.28B
Tennant Co Business Overview & Revenue Model
Company Description
Tennant Company, a global entity operating its design, manufacturing, and marketing efforts across the Americas, Europe, the Middle East, Africa, and Asia Pacific, specializes in sophisticated floor cleaning machinery. Its comprehensive portfolio ...
How the Company Makes Money
Tennant primarily makes money by selling cleaning equipment (capital equipment) and by generating recurring aftermarket revenue tied to its installed base of machines. Key revenue streams include: (1) Sales of new equipment: Revenue from the sale ...
Tennant Co Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive picture: meaningful operational disruption from the North America ERP implementation drove notable short-term revenue, margin, EPS and cash-flow headwinds in Q1, but management reported clear stabilization progress, sequential margin improvement, strong order momentum and accelerating robotics growth (85% YoY for AMR). The company reaffirmed full-year guidance, emphasized liquidity and disciplined capital allocation (including opportunistic buybacks), and laid out credible steps for margin recovery and AMR expansion. Given the balanced set of significant near-term challenges and offsetting strategic/operational positives with guidance intact, the tone is cautious but constructive.Positive Updates
Strong Order Momentum and Backlog Growth
Orders of $327 million, up 10% year-over-year, with backlog increasing approximately $32 million to $109 million, signaling strong demand momentum and healthy customer relationships.
Negative Updates
ERP Implementation Disruption and Financial Impact
ERP disruption reduced Q1 net sales by approximately $23 million and gross margin by about $17 million (≈$11M lost volume + ≈$6M elevated labor, freight and expediting costs); included a 2-week manufacturing/distribution shutdown in January and $8.8 million of ERP project spend in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Order Momentum and Backlog Growth
Orders of $327 million, up 10% year-over-year, with backlog increasing approximately $32 million to $109 million, signaling strong demand momentum and healthy customer relationships.
Read all positive updates
Company Guidance
Tennant reaffirmed 2026 guidance calling for net sales of $1.24–$1.28 billion (organic growth 3.0%–6.5%), adjusted EBITDA $175–$190 million (14.1%–14.8% margin), GAAP diluted EPS $4.05–$4.65 and adjusted diluted EPS $4.70–$5.30 (ex‑ERP/amortization), CapEx ~ $25 million and an adjusted effective tax rate of 24%–29% (ex‑ERP/amortization); management expects results to be back‑weighted with sequential quarterly improvement and gross margin expansion into the low‑40% range in H2 (enterprise March exit ≈40%). For context Q1 included orders $327M (+10% y/y) and backlog $109M (+~$32M), net sales $297.9M (+2.7% y/y; organic −1.9%), adjusted EBITDA $29.1M (9.8%), GAAP net income $0.2M, adjusted EPS $0.58, AMR sales ≈$27M (9% of sales, +85% y/y), an estimated Q1 ERP drag of ~$23M sales and ~$17M gross margin, cash $82.6M, ~ $289M revolver capacity, net leverage 1.78x, Q1 buybacks $60M (~950k shares at $63 avg) with an expected ≈$0.15 full‑year EPS benefit and a new 2M‑share authorization (total repurchase capacity ≈2.56M shares, ~15% of shares).Tennant Co Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22B | 1.20B | 1.29B | 1.24B | 1.09B | 1.09B |
| Gross Profit | 471.70M | 484.30M | 550.00M | 527.80M | 420.90M | 438.00M |
| EBITDA | 97.40M | 125.60M | 169.00M | 188.40M | 135.30M | 134.50M |
| Net Income | 18.30M | 43.80M | 83.70M | 109.50M | 66.30M | 64.90M |
Balance Sheet | ||||||
| Total Assets | 1.27B | 1.27B | 1.19B | 1.11B | 1.09B | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 76.90M | 106.40M | 99.60M | 116.90M | 77.20M | 123.10M |
| Total Debt | 390.80M | 344.60M | 254.30M | 242.40M | 332.40M | 309.40M |
| Total Liabilities | 735.60M | 665.50M | 568.00M | 535.10M | 613.00M | 626.60M |
| Stockholders Equity | 533.40M | 601.60M | 620.80M | 577.00M | 470.80M | 433.80M |
Cash Flow | ||||||
| Free Cash Flow | -2.90M | 43.30M | 68.30M | 164.40M | -54.40M | 46.30M |
| Operating Cash Flow | 16.70M | 65.00M | 89.70M | 188.40M | -25.10M | 69.40M |
| Investing Cash Flow | -27.50M | -22.70M | -78.40M | -23.20M | -24.50M | 1.70M |
| Financing Cash Flow | 5.50M | -38.70M | -25.20M | -122.60M | 8.10M | -84.50M |
Tennant Co Technical Analysis
Negative
70.03
Price Trends
78.75
Negative
81.19
Negative
76.76
Negative
Market Momentum
-2.27
Negative
47.84
Neutral
80.84
Negative
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 70.03 is above the 20-day moving average (MA) of 68.73, below the 50-day MA of 78.75, and below the 200-day MA of 76.76, indicating a neutral trend. The MACD of -2.27 indicates Negative momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 80.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNC.
Tennant Co Risk Analysis
Tennant Co disclosed 19 risk factors in its most recent earnings report. Tennant Co reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tennant Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.36B | 33.06 | 7.65% | 0.59% | 13.98% | 105.73% | |
69 Neutral | $3.39B | 31.29 | 14.35% | 0.50% | 12.85% | 85.73% | |
68 Neutral | $1.99B | 31.99 | 14.79% | 1.01% | 4.18% | 19.92% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
46 Neutral | $1.23B | 73.36 | 3.17% | 1.69% | -2.91% | -68.31% |
* Industrials Sector Average
TNC
Tennant Co
73.46
-6.35
-7.96%
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Gorman-Rupp Company
75.49
33.92
81.59%
SXI
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271.63
73.75
37.27%
HLIO
Helios Technologies
71.42
17.91
33.46%
Tennant Co Corporate Events
Business Operations and StrategyExecutive/Board Changes
Tennant Co Announces Upcoming Chief Financial Officer Transition
Neutral
Jul 30, 2026
On July 27, 2026, Tennant Company announced that Senior Vice President and Chief Financial Officer Fay West has notified the company of her intention to retire after a successor is hired and a transition period is completed, but no earlier than Ap...
Executive/Board Changes
Tennant Company Appoints Richard Zay as Chief Operating Officer
Positive
Jun 17, 2026
On June 17, 2026, Tennant Company announced that Richard H. (Rusty) Zay will become Chief Operating Officer, effective July 1, 2026, marking a continuation of his advancement since joining the company in 2010 and holding roles in global marketing,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.