Tennant Company
Find Ratings ReportsTENNANT CO's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. TENNANT CO has average liquidity. Currently, the Quick Ratio is 1.33 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 22.55% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 311.4 | 291.0 |
EBITDA ($mil) | 39.9 | 44.0 |
EBIT ($mil) | 26.2 | 31.4 |
Net Income ($mil) | 31.0 | 23.8 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 117.1 | 77.4 |
Total Assets ($mil) | 1113.4 | 1085.1 |
Total Debt ($mil) | 242.4 | 332.4 |
Equity ($mil) | 577.0 | 470.8 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 46.63 | 44.02 |
EBITDA Margin | 12.81 | 15.12 |
Operating Margin | 8.41 | 10.79 |
Sales Turnover | 1.12 | 1.01 |
Return on Assets | 9.83 | 6.11 |
Return on Equity | 18.98 | 14.08 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.08 | 2.2 |
Debt/Capital | 0.3 | 0.41 |
Interest Expense | 2.5 | 3.4 |
Interest Coverage | 10.48 | 9.24 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 18.63 | 18.52 |
Div / share | 0.28 | 0.27 |
EPS | 1.64 | 1.27 |
Book value / share | 30.97 | 25.42 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 143375.0 | 119429.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.62 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, TENNANT CO proves to trade at a discount to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
TNC 19.22 | Peers 34.89 | TNC 11.08 | Peers 35.56 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TNC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TNC is trading at a significant discount to its peers. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
TNC 16.40 | Peers 25.65 | TNC 1.84 | Peers 5.15 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. TNC is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. TNC trades at a significant discount to its peers. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
TNC 3.62 | Peers 15.81 | TNC 64.68 | Peers 20.44 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TNC is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. TNC is expected to have an earnings growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
TNC 1.68 | Peers 8.34 | TNC 13.86 | Peers 14.92 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TNC is trading at a significant discount to its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. TNC is keeping pace with its peers on the basis of sales growth. |
|||||||||||||||||||||||