Tennant Company

TNC

Industrial - Machinery · Industrials

Price

$86.11

-2.22 (-2.51%)

Market Cap

$1.47B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−1.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 18.8M (2021) → 18.6M (2025)

Tennant Company makes machines that clean floors. Its main products are industrial floor scrubbers, sweepers, and other cleaning equipment used in warehouses, factories, airports, schools, and retail stores. Founded in 1870 and headquartered in Golden Valley, Minnesota, Tennant is one of the oldest and most recognized names in professional floor cleaning equipment.

The company sells its machines outright and also earns recurring revenue from parts, consumables, and service contracts. Tennant operates globally, with sales across North America, Europe, and Asia-Pacific, and generates roughly $1.1 billion in annual revenue. Its competitive position comes from its established dealer network, brand recognition, and a growing line of autonomous robotic cleaning machines — but with operating margins below 5%, the company has limited room for error, and its key challenge is improving profitability while competing against larger industrial equipment makers and lower-cost rivals.

Winston Score History

Politician Trades

2 trades / 12mo

1 Congressional buy and 1 sell on TNC in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-98.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$41M/ year

↓ Declining (-6% vs prior year)

3.4% of revenue

In line with sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

2.4%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~7 months

$83M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Tennant Company has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

38.1%

Modest — 38.1% gross margin

Operating Margin

1.6%

Thin — 1.6% operating margin

ROCE

0.6%

Weak — 0.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-4.3%

Shrinking sales (-4.3% YoY)

EPS YoY

-54.1%

Earnings shrinking (-54.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

111%

Turns 111% of profit into real cash

FCF Margin

1.4%

Thin free cash flow (1.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.68

Moderate — manageable debt (0.68)

Interest Cover

5.31x

Adequate interest coverage (5.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

51.5x

Expensive — P/E 51.5

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+38.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (51.5 → 13.4)

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Dividends

Dividend Yield

1.42%

Small dividend — 1.42% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+5.2%

Dividend growing modestly (5.2% YoY)

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