Is the business good?
How good a business is TNC?
Tennant Company earns 5.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.3%
Return on invested capital · cost of capital 9.0% · 3.8 points below what the capital costs: growth destroys value
- Operating margin
- 4.4%
Operating margin · Specialty Industrial Machinery median 15% · 12 months to Q1 2026
- Cash conversion
- 0.53×
Cash conversion · 0.90× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −6.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.4% |
| FY2021 | 8.6% |
| FY2022 | 8.0% |
| FY2023 | 11% |
| FY2024 | 8.9% |
| FY2025 | 5.7% |
Details›
- Gross margin12 months to Q1 2026
- 39%
- Operating margin12 months to Q1 2026
- 4.4%
- Net margin12 months to Q1 2026
- 2.5%
- Free cash flow margin
- 1.4%
- R&D as % of revenue
- 3.5%
- Revenue, trailing twelve months
- $1.21B
- Free cash flow, trailing twelve months
- $16M
- Net income, trailing twelve months
- $31M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Industrial Machinery
Ranks #43 of 44 by Smart Score