Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Tennant Company (TNC)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$45.18 - $85.61$61.52
Multi-Stage$52.93 - $57.98$55.41
Blended Fair Value$58.46
Current Price$81.06
Upside-27.88%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.99%3.98%1.141.071.000.930.870.850.820.790.760.77
YoY Growth--6.47%6.35%8.00%7.36%1.88%4.28%2.61%4.62%-1.41%0.08%
Dividend Yield--1.43%0.87%1.47%1.18%1.08%1.47%1.32%1.17%1.05%1.50%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)54.80
(-) Cash Dividends Paid (M)21.90
(=) Cash Retained (M)32.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.966.854.11
Cash Retained (M)32.9032.9032.90
(-) Cash Required (M)-10.96-6.85-4.11
(=) Excess Retained (M)21.9426.0528.79
(/) Shares Outstanding (M)18.8118.8118.81
(=) Excess Retained per Share1.171.381.53
LTM Dividend per Share1.161.161.16
(+) Excess Retained per Share1.171.381.53
(=) Adjusted Dividend2.332.552.69
WACC / Discount Rate7.88%7.88%7.88%
Growth Rate2.58%3.58%4.58%
Fair Value$45.18$61.52$85.61
Upside / Downside-44.27%-24.11%5.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)54.8056.7658.8060.9063.0965.3567.31
Payout Ratio39.96%49.97%59.98%69.99%79.99%90.00%92.50%
Projected Dividends (M)21.9028.3735.2742.6250.4658.8162.26

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.88%7.88%7.88%
Growth Rate2.58%3.58%4.58%
Year 1 PV (M)26.0426.2926.55
Year 2 PV (M)29.7230.3030.89
Year 3 PV (M)32.9833.9534.95
Year 4 PV (M)35.8537.2638.72
Year 5 PV (M)38.3540.2642.24
PV of Terminal Value (M)832.77874.16917.17
Equity Value (M)995.711,042.231,090.53
Shares Outstanding (M)18.8118.8118.81
Fair Value$52.93$55.41$57.98
Upside / Downside-34.70%-31.65%-28.48%

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