Tennant Company (TNC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+24.4%

$85.94

vs $69.07 price

Levered DCF

$36.54

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

2.91

Grey zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	30.97×	18.28×	15.66×	17.2×	23.09×	38.14×	30.8×	28.02×
P/B	2.25×	2.47×	2.97×	2.42×	3.46×	3.18×	3.92×	2.97×
P/S	1.12×	1.19×	1.38×	1.04×	1.37×	1.29×	1.24×	0.83×
EV / EBITDA	12.57×	9.98×	9.77×	10.3×	12.53×	13.41×	13.66×	10.6×
Gross margin	40.2%	42.7%	42.4%	38.5%	40.2%	40.7%	40.6%	39.6%
Operating margin	5.7%	8.9%	11.1%	8.0%	8.6%	6.4%	6.3%	5.2%
Net margin	3.6%	6.5%	8.8%	6.1%	5.9%	3.4%	4.0%	3.0%
Current ratio	2.05×	1.97×	2.08×	2.2×	1.81×	1.94×	1.75×	1.88×
Debt / equity	0.55×	0.41×	0.42×	0.71×	0.71×	0.87×	1.07×	1.13×
Interest coverage	7.59×	12.56×	10.27×	12.28×	12.84×	3.08×	3.4×	2.48×
Dividend yield	1.6%	1.4%	1.2%	1.7%	1.2%	1.3%	1.1%	1.6%
Payout ratio	50.0%	25.6%	18.4%	28.5%	27.0%	48.4%	34.9%	45.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.3%	13.5%	19.0%	14.1%	15.0%	8.3%	12.7%	10.6%
Return on invested capital	5.2%	9.9%	14.2%	8.6%	10.4%	6.1%	7.3%	7.0%
Return on assets	3.5%	7.0%	9.8%	6.1%	6.1%	3.1%	4.3%	3.4%
Free cash flow yield	3.2%	4.5%	9.6%	-4.8%	3.1%	8.1%	2.3%	6.2%
Earnings yield	3.2%	5.5%	6.4%	5.8%	4.3%	2.6%	3.2%	3.6%
Enterprise value	$1.6B	$1.7B	$1.8B	$1.4B	$1.7B	$1.5B	$1.7B	$1.2B
Net debt / EBITDA	1.79×	0.92×	0.67×	1.89×	1.39×	1.9×	2.47×	2.37×
Cash conversion cycle (days)	114	102	106	128	93	86	102	87