# Tennant (TNC.US)

Canonical: https://gigainvestors.com/s/TNC

Analysis as of: 2026-10-16T07:32:26.616Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $66.00 per share; close as of 2026-10-15.

Estimated value: low $70.88 per share, central $80.23 per share, high $92.67 per share. Buy at or below the central value $80.23 per share. Valuation as of 2026-10-16T07:32:26.616Z; scenarios are not confidence intervals.

Expected annual return: 11.6% at the stated quote. About 11.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.35×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.05×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.09×

- FY2022: 0.08×

- FY2023: 0.11×

- FY2024: 0.09×

- FY2025: 0.06×

- LTM to Mar 2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.1%

- ROIC, second-lowest year: 5.0%

- Typical minus recent gross margin: 1.5 pp

- Typical gross margin (annual median): 40.3%

- Recent gross margin (lower of latest and 3-year median): 38.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 11.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.0%

- FY2018: 13.5%

- FY2019: 12.8%

- FY2020: 12.7%

- FY2021: 19.2%

- FY2022: 13.4%

- FY2023: 23.8%

- FY2024: 15.5%

- FY2025: 8.4%

- LTM to Jun 2026: 4.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.49×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $479M

- Net income, five-year total: $322M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 4.1 pp

- Working capital / revenue, final three-year average: 27.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.29×

- FY2023: 1.25×

- FY2024: 1.40×

- FY2025: 1.84×

- LTM to Jun 2026: 3.20×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 13.5% vs 15.5%

- Per-share earnings: 1.74 to 4.38 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: $56M

- Cumulative retained earnings: $310M

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.3%

- Per-share value change: $2.65

- Per-share value, starting three-year median: $1.74

- Per-share value, ending three-year median: $4.38

- Buybacks concentrated in cheaper years (correlation): -0.37

- Average buyback yield: 2.0%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: $416M

- Cumulative net income, 10 years: $522M

- ROIC, first three-year median: 13.5%

- ROIC, last three-year median: 15.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.59

- FY2017: -$0.35

- FY2018: $1.82

- FY2019: $2.48

- FY2020: $1.81

- FY2021: $3.44

- FY2022: $3.55

- FY2023: $5.83

- FY2024: $4.38

- FY2025: $2.36

### accounting: fail

- restructuring or one-time charges in at least three of five years

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -1.7%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 16.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.48×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.43×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.4%

- FY2017: -6.1%

- FY2018: -4.7%

- FY2019: -2.5%

- FY2020: -9.2%

- FY2021: -0.4%

- FY2022: 8.4%

- FY2023: -7.1%

- FY2024: -0.5%

- FY2025: -1.7%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 46% since Mar 2024 · "Tennant misses top-line and bottom-line estimates; introduces FY26 outlook" (seekingalpha.com, Feb 2026) · sales +0.7%

Story as of 2026-10-16T09:59:42.431Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.7% a year for ten years

- 2025-05-14: TNC Q1 Earnings Call: Tariff Uncertainty and Product Mix Weigh on Results, Guidance Maintained ([finance.yahoo.com](https://finance.yahoo.com/news/tnc-q1-earnings-call-tariff-204436843.html))

- 2025-11-05: TNC Q3 Deep Dive: Tariff Uncertainty and Industrial Softness Offset Product Gains ([finance.yahoo.com](https://finance.yahoo.com/news/tnc-q3-deep-dive-tariff-133748080.html))

- 2026-02-24: Tennant misses top-line and bottom-line estimates; introduces FY26 outlook ([seekingalpha.com](https://seekingalpha.com/news/4555605-tennant-misses-top-line-and-bottom-line-estimates-introduces-fy26-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-06: Tennant (NYSE:TNC) Misses Q2 CY2026 Revenue Estimates, Stock Drops 13.8% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/tennant-nyse-tnc-misses-q2-134601255.html))

### Sales · FY2025–2026

sales +0.7%; source https://www.sec.gov/Archives/edgar/data/97134/000009713426000008/tnc-20251231.htm; observed 2026-02-24.

- FY2017: $1.0B 

- FY2018: $1.1B 

- FY2019: $1.1B 

- FY2020: $1.0B 

- FY2021: $1.1B 

- FY2022: $1.1B 

- FY2023: $1.2B 

- FY2024: $1.3B 

- FY2025: $1.2B 

- FY2026: $1.2B 

### Gross margin · FY2026

gross margin 38.8%; source https://www.sec.gov/Archives/edgar/data/97134/000009713426000008/tnc-20251231.htm; observed 2026-02-24.

- FY2017: 40.3% 

- FY2018: 39.6% 

- FY2019: 40.6% 

- FY2020: 40.7% 

- FY2021: 40.2% 

- FY2022: 38.5% 

- FY2023: 42.4% 

- FY2024: 42.7% 

- FY2025: 40.2% 

- FY2026: 38.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are USD 1.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/97134/000009713426000008/tnc-20251231.htm (filed 2026-02-24); FY2025: revenue 1203500000; grossProfit 484300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); TNC.US: Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers manual and autonomous mechanized cleaning equipment for industrial and commercial use, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, and equipment maintenance and repair services. It also provides business solutions such as financing, rental and leasing programs, and machine-to-machine asset management solutions. In addition, the company offers robotic cleaning equipment; IRIS, an asset management solution; ec-H2O NanoClean, a detergent-free cleaning solution; and ReadySpace, a rapid-drying carpet cleaning technology. It offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. The company serves retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and others. It markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

### Why customers stay

Margins ranged from 40.2% to 42.7% during 2023–25; it earns 13.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 42.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 42.7%.

- Source: https://www.sec.gov/Archives/edgar/data/97134/000009713426000008/tnc-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 40.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2017,0.04980780707971204],[2018,0.13523679275448164],[2019,0.1280797481636936],[2020,0.1273613758676152],[2021,0.19219328270234223],[2022,0.1336792452830189],[2023,0.23799353231911616],[2024,0.1547504817092818],[2025,0.08365828612848668],[2026,0.04521532012195122]]; median 0.13087949672335625. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 4% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 26526000; cash acquisitions 12933000; owner earnings 38388000. Growth capex plus acquisitions / owner earnings = 0.33690215692403874.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 22937000; cash acquisitions 354100000; owner earnings 14121000. Growth capex plus acquisitions / owner earnings = 25.076127752991997.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 21555000; cash acquisitions 0; owner earnings 66277000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 38900000; cash acquisitions 19700000; owner earnings 61300000. Growth capex plus acquisitions / owner earnings = 0.32137030995106036.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 30000000; cash acquisitions 0; owner earnings 57100000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 23200000; cash acquisitions 0; owner earnings 94800000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 29300000; cash acquisitions 0; owner earnings 85700000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 24000000; cash acquisitions 0; owner earnings 136600000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 21400000; cash acquisitions 25700000; owner earnings 117400000. Growth capex plus acquisitions / owner earnings = 0.21890971039182283.

- Source: https://www.sec.gov/Archives/edgar/data/97134/000009713426000008/tnc-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 21700000; cash acquisitions 3200000; owner earnings 80800000. Growth capex plus acquisitions / owner earnings = 0.039603960396039604.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,14293000],[2017,14953000],[2018,15343000],[2019,16000000],[2020,16300000],[2021,17500000],[2022,18900000],[2023,20100000],[2024,21400000],[2025,21900000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/97134/000009713426000008/tnc-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 88500000 USD.

### Are managers owners

Insiders own 2.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); TNC.US SharesStats.PercentInsiders = 2.175 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits shrink 1.7% yearly over ten years; actual growth was 12.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate -0.03617329539189923. Price 66; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.3701610089238636 → FY2025 4.348830689310655. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $62.95 per share

- 2016-11: $75.10 per share

- 2016-12: $71.20 per share

- 2017-01: $69.25 per share

- 2017-02: $70.25 per share

- 2017-03: $72.65 per share

- 2017-04: $73.25 per share

- 2017-05: $70.00 per share

- 2017-06: $73.80 per share

- 2017-07: $75.55 per share

- 2017-08: $60.95 per share

- 2017-09: $66.20 per share

- 2017-10: $69.35 per share

- 2017-11: $65.80 per share

- 2017-12: $72.65 per share

- 2018-01: $67.40 per share

- 2018-02: $64.40 per share

- 2018-03: $67.70 per share

- 2018-04: $74.00 per share

- 2018-05: $78.80 per share

- 2018-06: $79.00 per share

- 2018-07: $81.35 per share

- 2018-08: $76.55 per share

- 2018-09: $75.95 per share

- 2018-10: $61.12 per share

- 2018-11: $59.85 per share

- 2018-12: $52.11 per share

- 2019-01: $58.73 per share

- 2019-02: $63.20 per share

- 2019-03: $62.09 per share

- 2019-04: $66.38 per share

- 2019-05: $57.61 per share

- 2019-06: $61.20 per share

- 2019-07: $76.11 per share

- 2019-08: $68.39 per share

- 2019-09: $70.70 per share

- 2019-10: $77.43 per share

- 2019-11: $74.46 per share

- 2019-12: $77.92 per share

- 2020-01: $77.22 per share

- 2020-02: $71.54 per share

- 2020-03: $57.95 per share

- 2020-04: $59.17 per share

- 2020-05: $63.94 per share

- 2020-06: $65.01 per share

- 2020-07: $66.62 per share

- 2020-08: $66.47 per share

- 2020-09: $60.36 per share

- 2020-10: $59.62 per share

- 2020-11: $67.16 per share

- 2020-12: $70.17 per share

- 2021-01: $67.75 per share

- 2021-02: $76.20 per share

- 2021-03: $79.89 per share

- 2021-04: $78.91 per share

- 2021-05: $82.74 per share

- 2021-06: $79.85 per share

- 2021-07: $79.12 per share

- 2021-08: $73.98 per share

- 2021-09: $73.95 per share

- 2021-10: $79.46 per share

- 2021-11: $78.66 per share

- 2021-12: $81.04 per share

- 2022-01: $77.17 per share

- 2022-02: $78.78 per share

- 2022-03: $78.80 per share

- 2022-04: $64.58 per share

- 2022-05: $62.24 per share

- 2022-06: $59.25 per share

- 2022-07: $67.03 per share

- 2022-08: $60.35 per share

- 2022-09: $56.56 per share

- 2022-10: $58.25 per share

- 2022-11: $63.53 per share

- 2022-12: $61.57 per share

- 2023-01: $70.13 per share

- 2023-02: $70.82 per share

- 2023-03: $68.53 per share

- 2023-04: $76.42 per share

- 2023-05: $73.10 per share

- 2023-06: $81.11 per share

- 2023-07: $80.24 per share

- 2023-08: $82.43 per share

- 2023-09: $74.15 per share

- 2023-10: $74.22 per share

- 2023-11: $85.62 per share

- 2023-12: $92.69 per share

- 2024-01: $94.52 per share

- 2024-02: $113.19 per share

- 2024-03: $121.61 per share

- 2024-04: $116.48 per share

- 2024-05: $102.66 per share

- 2024-06: $98.44 per share

- 2024-07: $107.69 per share

- 2024-08: $97.67 per share

- 2024-09: $96.04 per share

- 2024-10: $87.56 per share

- 2024-11: $88.37 per share

- 2024-12: $81.53 per share

- 2025-01: $85.52 per share

- 2025-02: $86.56 per share

- 2025-03: $79.75 per share

- 2025-04: $72.16 per share

- 2025-05: $74.42 per share

- 2025-06: $77.48 per share

- 2025-07: $82.54 per share

- 2025-08: $82.04 per share

- 2025-09: $81.06 per share

- 2025-10: $80.00 per share

- 2025-11: $73.13 per share

- 2025-12: $73.70 per share

- 2026-01: $76.09 per share

- 2026-02: $61.03 per share

- 2026-03: $66.40 per share

- 2026-04: $83.04 per share

- 2026-05: $86.11 per share

- 2026-06: $87.54 per share

- 2026-07: $84.03 per share

- 2026-08: $69.60 per share

- 2026-09: $67.22 per share

- 2026-10: $66.00 per share

## Annual estimated value (USD per share)

- FY2016: low $34.36 per share, central $41.55 per share, high $48.05 per share

- FY2017: low $31.58 per share, central $35.64 per share, high $41.04 per share

- FY2018: low $37.14 per share, central $44.21 per share, high $50.95 per share

- FY2019: low $37.68 per share, central $46.30 per share, high $53.56 per share

- FY2020: low $38.10 per share, central $42.46 per share, high $48.27 per share

- FY2021: low $41.45 per share, central $46.43 per share, high $53.05 per share

- FY2022: low $40.63 per share, central $45.82 per share, high $52.73 per share

- FY2023: low $65.62 per share, central $79.04 per share, high $91.33 per share

- FY2024: low $67.87 per share, central $76.70 per share, high $88.45 per share

- FY2025: low $65.95 per share, central $74.44 per share, high $85.73 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/97134/000009713426000008/tnc-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.