Latest Ratios: P/E Ratio 28.4x · EV/EBITDA 10.9x · ROE 7.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.1B | $1.4B | $1.6B | $1.7B | $1.2B | $1.5B | $1.3B | $1.4B | $956M | $1.3B | $1.3B |
| Enterprise Value | $1.4B | $1.6B | $1.7B | $1.9B | $1.4B | $1.7B | $1.5B | $1.7B | $1.2B | $1.6B | $1.3B |
| P/E Ratio → | 28.44 | 31.23 | 18.61 | 15.90 | 17.34 | 23.56 | 38.77 | 31.42 | 28.63 | — | 27.49 |
| P/S Ratio | 0.95 | 1.14 | 1.21 | 1.40 | 1.05 | 1.40 | 1.31 | 1.26 | 0.85 | 1.28 | 1.58 |
| P/B Ratio | 2.07 | 2.27 | 2.50 | 3.01 | 2.44 | 3.51 | 3.22 | 3.98 | 3.02 | 4.31 | 4.59 |
| P/FCF | 26.41 | 31.62 | 22.80 | 10.59 | — | 32.99 | 12.60 | 43.57 | 16.36 | 41.16 | 40.82 |
| P/OCF | 17.59 | 21.07 | 17.36 | 9.24 | — | 22.01 | 9.77 | 20.00 | 11.95 | 23.73 | 22.11 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.34 | 1.33 | 1.50 | 1.29 | 1.57 | 1.52 | 1.54 | 1.09 | 1.60 | 1.56 |
| EV / EBITDA | 10.88 | 12.66 | 10.10 | 9.84 | 10.35 | 11.67 | 12.99 | 13.86 | 10.90 | 22.82 | 14.49 |
| EV / EBIT | 20.23 | 24.03 | 15.03 | 13.59 | 16.24 | 21.05 | 26.00 | 24.37 | 20.70 | 66.55 | 18.37 |
| EV / FCF | — | 37.13 | 25.06 | 11.35 | — | 37.02 | 14.65 | 53.02 | 20.97 | 51.35 | 40.13 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.2% | 40.2% | 42.7% | 42.4% | 38.5% | 40.2% | 40.7% | 40.6% | 39.6% | 40.3% | 43.5% |
| Operating Margin | 5.7% | 5.7% | 8.9% | 11.1% | 8.0% | 8.6% | 6.4% | 6.3% | 5.2% | 2.7% | 8.5% |
| Net Profit Margin | 3.6% | 3.6% | 6.5% | 8.8% | 6.1% | 5.9% | 3.4% | 4.0% | 3.0% | -0.6% | 5.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.1% | 7.1% | 13.9% | 20.8% | 14.6% | 15.4% | 8.8% | 13.5% | 10.9% | -2.1% | 17.6% |
| ROA | 3.6% | 3.6% | 7.3% | 10.0% | 6.2% | 6.1% | 3.1% | 4.5% | 3.4% | -0.8% | 10.3% |
| ROIC | 6.3% | 6.3% | 11.6% | 14.5% | 9.7% | 11.3% | 7.4% | 8.6% | 7.2% | 4.6% | 21.3% |
| ROCE | 7.3% | 7.3% | 13.2% | 16.7% | 10.9% | 11.7% | 7.9% | 9.4% | 7.7% | 4.9% | 21.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.57 | 0.57 | 0.41 | 0.42 | 0.70 | 0.71 | 0.87 | 1.07 | 1.12 | 1.26 | 0.13 |
| Debt / EBITDA | 2.71 | 2.71 | 1.50 | 1.28 | 2.45 | 2.11 | 3.02 | 3.06 | 3.16 | 5.36 | 0.42 |
| Net Debt / Equity | — | 0.39 | 0.25 | 0.22 | 0.54 | 0.43 | 0.52 | 0.86 | 0.85 | 1.07 | -0.08 |
| Net Debt / EBITDA | 1.88 | 1.88 | 0.91 | 0.66 | 1.88 | 1.27 | 1.82 | 2.47 | 2.40 | 4.53 | -0.25 |
| Debt / FCF | — | 5.50 | 2.27 | 0.76 | — | 4.02 | 2.05 | 9.45 | 4.61 | 10.19 | -0.70 |
| Interest Coverage | 7.43 | 7.43 | 12.52 | 10.17 | 12.20 | 11.15 | 2.83 | 3.40 | 2.54 | 0.95 | 53.56 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.05 | 2.05 | 1.97 | 2.08 | 2.20 | 1.81 | 1.94 | 1.75 | 1.88 | 1.79 | 2.24 |
| Quick Ratio | 1.37 | 1.37 | 1.34 | 1.44 | 1.41 | 1.26 | 1.44 | 1.20 | 1.34 | 1.25 | 1.65 |
| Cash Ratio | 0.36 | 0.36 | 0.34 | 0.43 | 0.30 | 0.42 | 0.55 | 0.27 | 0.34 | 0.25 | 0.44 |
| Asset Turnover | — | 0.95 | 1.08 | 1.12 | 1.01 | 1.03 | 0.92 | 1.07 | 1.13 | 1.01 | 1.72 |
| Inventory Turnover | 3.62 | 3.62 | 4.01 | 4.07 | 3.25 | 4.06 | 4.65 | 4.50 | 5.02 | 4.69 | 5.81 |
| Days Sales Outstanding | — | 77.88 | 73.50 | 72.67 | 84.05 | 70.74 | 72.89 | 71.65 | 67.57 | 76.24 | 67.32 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.6% | 1.4% | 1.2% | 1.6% | 1.1% | 1.2% | 1.1% | 1.6% | 1.2% | 1.1% |
| Payout Ratio | 50.0% | 50.0% | 25.6% | 18.4% | 28.5% | 27.0% | 48.4% | 34.9% | 45.9% | — | 30.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 3.2% | 5.4% | 6.3% | 5.8% | 4.2% | 2.6% | 3.2% | 3.5% | — | 3.6% |
| FCF Yield | 3.8% | 3.2% | 4.4% | 9.4% | — | 3.0% | 7.9% | 2.3% | 6.1% | 2.4% | 2.4% |
| Buyback Yield | 7.7% | 6.5% | 1.3% | 1.2% | 0.4% | 1.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.0% |
| Total Shareholder Yield | 9.5% | 8.1% | 2.6% | 2.4% | 2.1% | 2.1% | 1.2% | 1.1% | 1.6% | 1.2% | 2.1% |
| Shares Outstanding | — | $19M | $19M | $19M | $19M | $19M | $19M | $18M | $18M | $18M | $18M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TNC stock.
Tennant Company's current P/E ratio is 28.4x. The historical average is 25.5x. This places it at the 71th percentile of its historical range.
Tennant Company's current EV/EBITDA is 10.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.0x.
Tennant Company's return on equity (ROE) is 7.1%. The historical average is 12.2%.
Based on historical data, Tennant Company is trading at a P/E of 28.4x. This is at the 71th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Tennant Company's current dividend yield is 1.76% with a payout ratio of 50.0%.
Tennant Company has 40.2% gross margin and 5.7% operating margin.
Tennant Company's Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Rapidly escalating leverage amid cash burn
Metrics are mathematically derived from official filings.
Margin Compression Erodes Core Earning Power
Tennant's profitability has deteriorated sharply, with the trailing twelve-month net margin falling to a mere 2.3% in 2026Q2, a significant contraction from the 8.4% reported in 2024Q2, indicating a fundamental shift in the company's earning power over this period.
The gross margin decline from 44.2% to 39.5% over two years suggests persistent input cost or pricing headwinds that have not been fully passed through. This compression flows directly to the bottom line, as evidenced by the near-collapse in operating margin from 12.1% to 4.9%, indicating that fixed overhead, particularly SG&A, is now consuming a disproportionate share of revenue. The volatility in net margin implies the company's true core earning power is currently the lower end of its recent range, not the peak levels seen in early 2024.
Return on Invested Capital Collapses Below Cost
Tennant's return on invested capital has fallen to just 1.4% in 2026Q2, a dramatic erosion from the 3.8% seen in 2024Q1, suggesting the company is currently destroying value by earning returns significantly below its implied weighted average cost of capital.
This collapse is driven by both margin deterioration and a decline in capital efficiency, as evidenced by the falling asset turnover from 0.29 to 0.25. The ROIC trend has moved from modestly positive to barely positive, and with the recent negative quarters, indicates the business model is struggling to generate adequate returns on the capital invested. This trend, if sustained, warrants serious questions about the long-term viability of the current capital structure and operational efficiency.
Interest Coverage Weakening as Debt Mounts
Based on Tennant's reported figures, the interest coverage ratio has weakened significantly from a comfortable 16.26x in 2024Q1 to just 3.40x in 2026Q2, a sharp deterioration that coincides with a debt-to-equity ratio that has nearly doubled from 0.39 to 0.73.
The declining coverage ratio is a direct consequence of rising interest expense from increased debt issuance, combined with falling operating income. While a 3.40x coverage is not yet critically low, the trajectory is concerning, especially as it occurs alongside negative free cash flow. This dynamic suggests debt is being used to fund operations and working capital rather than growth investments, which increases refinancing risk should operating conditions not improve.
Working Capital Efficiency Deteriorates Drastically
The cash conversion cycle has expanded to 118 days in 2026Q1, up from a relatively efficient 101 days in 2024Q2, revealing a substantial deterioration in working capital management that is directly consuming cash and exacerbating liquidity pressures.
This deterioration is primarily driven by a lengthening days inventory outstanding, which has risen from 90 days to 98 days, and volatile days sales outstanding. The expansion of the cycle suggests Tennant is tying up increasingly more capital in inventory and receivables without a corresponding improvement in supplier payment terms. This inefficiency is a key driver of the severe working capital cash drain identified in the cash flow analysis and is a critical area that must be reversed to restore cash generation.
The Deceptive Safety of the Current Ratio
The current ratio, a common liquidity metric, is likely the most misapplied ratio for Tennant's current situation, as its stable reading around 2.04 obscures the severe underlying cash generation crisis and the quality of the current assets.
Investors often use the current ratio as a simple indicator of liquidity health, but for Tennant, this metric is misleading. The ratio is being propped up by rising accounts receivable and inventory, as shown by the deteriorating cash conversion cycle, while actual cash reserves have declined and free cash flow is deeply negative. A more appropriate analysis would focus on the quick ratio, which has fallen from 1.46 to 1.37, and critically, the trajectory of operating cash flow, which provides a truer picture of the company's ability to meet short-term obligations without further leveraging its balance sheet.