Tennant Company Common Stock (TNC)

FairStock Score: 29/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Tennant as a maker of commercial floor-cleaning equipment, with aftermarket parts, consumables, and repair services that can create stickiness. But the filed numbers do not show a wide moat. In fiscal year 2024, the year ended 2024-12-31, net income was $83.7M on $1.3B revenue. In fiscal year 2025, the year ended 2025-12-31, net income fell to $43.8M on $1.2B revenue. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $324.0M but net income was only $7.6M; in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $20.2M. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was just $200,000. FairStock calculations at the 2026-10-13 close of $66.75 show a P/E of 64.18, P/B of 2.14, ROE of 3.08%, ROCE of 2.28%, and a negative $3.1M trailing free cash flow, or -0.3% FCF yield. Debt to equity is 0.73, and the Altman Z-Score is 2.14. FairStock's Graham Number is $27.06, making the margin of safety -146.67%. The Lynch category is SLOW GROWER, based on 5.4% profit growth and 3.8% revenue growth over five years. Tennant has scale and a service component, but low returns, falling profits, negative cash flow, and a high price versus conservative value keep me cautious. I would need margin recovery and positive cash generation before the stock looks like a bargain.

In plain English: Tennant makes floor-cleaning machines and related parts and services for commercial and industrial customers. The business looks weak right now: sales have barely grown while profits have fallen sharply, and it is not producing spare cash. At the recent price of $66.75, the stock looks expensive compared with the company's recent profits and net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer