Tennant Company has exceptional cash conversion at 170% of net income and a Piotroski score of 8 out of 9, but three consecutive earnings misses, negative asymmetry, and a below-average quality score create a weak investment thesis at current prices.
Thesis pillars
- Exceptional Cash Conversion↓Deteriorating
- Consecutive Earnings Misses↑Improving
- Near Zero Growth Profile↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 24, 2026· older than 90 days
Tennant Company (TNC) Stock Analysis
Recovery setup
Industrials · Specialty Industrial Machinery
Sell if holding. Analyst target reached at $72.84 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0).
Tennant Company designs, manufactures, and markets manual and autonomous cleaning equipment, aftermarket parts, and related services for nonresidential surfaces, selling under brands including Tennant, Nobles, and IPC through direct sales in 21 countries and distributors in more... Read more
Sell if holding. Analyst target reached at $72.84 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0). Chart setup: Death cross but MACD improving, RSI 77. Score 5.5/10, moderate confidence.
Passes 5/8 gates (positive momentum, clean insider activity, earnings proximity 109d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Tennant Company
About Tennant Company
Tennant Company operates 11 global manufacturing locations and sells directly in 21 countries while reaching more than 100 additional markets through independent distributors, serving over 40,000 customers who maintain nonresidential surfaces in retail, warehouse, and institutional settings. The company aggregates its operations into one reportable segment across the Americas, Europe/Middle East/Africa, and Asia Pacific, employing 4,484 people worldwide as of December 31, 2025, of whom 40.4% work in the United States.
Tennant earns revenue from selling manual and autonomous cleaning equipment alongside aftermarket parts, consumables, equipment service and repair, and financing, rental, and leasing programs, reaching customers through the industry's largest direct sales and service organization plus a global distributor network. Steel, metal alloys, and resin are the primary raw materials used to manufacture its equipment, with input costs exposed to tariff regimes and global trade policy; the company mitigates this through regional manufacturing and sourcing strategies and diversified supplier relationships rather than a single-source arrangement. Competitively, Tennant faces large multinational manufacturers as well as numerous regional and local participants, differentiating through technology platforms such as its IRIS asset-management system, ec-H2O NanoClean detergent-free cleaning, and an expanding robotic cleaning equipment portfolio.
Show full overview
Tennant's revenue is directly tied to customers' capital-spending cycles: the 10-K states that product sales are sensitive to declines in capital spending, meaning a prolonged economic downturn could force the company into cost-cutting measures to match a lower sales base. Trade-policy volatility compounds this cyclicality — on February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act does not authorize the tariffs the company absorbed during 2025 under presidential executive order, leaving the financial impact of that ruling, including any refund of tariffs already paid, still undetermined as of the filing date.
See also: Industrials · Specialty Industrial Machinery
From Tennant Company's most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated Nov 2, 2026Recent Developments — Tennant Company
Latest news
- NEWS Earnings Flash (TNC) Tennant Company Reports Q3 Revenue $322.3M, vs. FactSet Est of $330.8M - marketscreener.com — marketscreener.com Nov 2, 2026 negative
- NEWS Tennant (TNC) Could Be 24% Undervalued On Its New P1 VAC Launch - Simply Wall St — Simply Wall St Nov 1, 2026 positive
- NEWS Tennant (TNC) Stock May Be 21% Undervalued Following P1 VAC Launch - Yahoo Finance — Yahoo Finance Oct 29, 2026 positive
- NEWS Hyosung TNC Corp. Estimates – KRX:298020 - TradingView — TradingView Oct 25, 2026 neutral
- NEWS Tennant (TNC) Is Drawing Fresh Attention, So What Are Investors Missing? - Simply Wall St — Simply Wall St Oct 25, 2026 neutral
Latest item Nov 2, 2026 · Generated 2026-11-05T11:49:11Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-06-17Item 5.02LOWTennant Company announced the appointment of Richard H. (Rusty) Zay, currently SVP and Chief Commercial Officer, to the newly effective position of Chief Operating Officer, effective July 1, 2026, with $400,000 in incremental equity awards granted for the promotion.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $72.84 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0). Chart setup: Death cross but MACD improving, RSI 77. Prior stop was $68.36. Score 5.5/10, moderate confidence.
Analyst target: $74.59 (+2.4% upside). Prior stop was $68.36. Stop-loss: $68.36.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0); Sector modifier (Industrials): -0.7.
Tennant Company trades at a P/E of 53.6 (forward 13.0). TrendMatrix value score: 5.7/10. Verdict: Sell.
7 analysts rate TNC, with a consensus score of 4.0/5. 4 analysts publish price targets averaging $88.
What does Tennant Company do?Tennant Company designs, manufactures, and markets manual and autonomous cleaning equipment, aftermarket parts, and...
Tennant Company designs, manufactures, and markets manual and autonomous cleaning equipment, aftermarket parts, and related services for nonresidential surfaces, selling under brands including Tennant, Nobles, and IPC through direct sales in 21 countries and distributors in more than 100 countries. The company serves more than 40,000 customers worldwide across one reportable segment spanning the Americas, EMEA, and Asia Pacific, with no material customer concentration.