TNCTennant Company
Is the business good?
More warning than reassurance: thin cash backing (0.6×) and margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TNC?
Tennant Company earns 3.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.2 points below what the capital costs: growth destroys value
- Operating margin
- 3.2%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q2 2026
- Cash conversion
- 0.58×
Cash conversion · 1.30× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −8.1%
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 Q2 2026
- 39%
- Operating margin12 months to Q2 2026
- 3.2%
- Net margin12 months to Q2 2026
- 1.5%
- Free cash flow margin
- −0.22%
- R&D as % of revenue
- 3.7%
- Revenue, trailing twelve months
- $1.22B
- Free cash flow, trailing twelve months
- −$2.7M
- Net income, trailing twelve months
- $18M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.