Tennant Company (NYSE:TNC)
The Company is engaged in designing, manufacturing and marketing of solutions that creates a cleaner, safer world. It provides equipment, parts and consumables & specialty surface coatings to contract cleaners, end-user businesses & federal governments.
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specializes in green products -net sales for first Q of the 2012 $173.7M 6% increase as compared to consolidated Net Sales of $172.6 M first Q 1211 supplies goverment & customers
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http://www.fool.com/investing/general/2012/03/09/rising-star-buy-tennant.aspx
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Growing revenue, earnings, and dividend yield. Stock price tends to beat S&P.
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SA recommendation and dividend
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Stock Advisor pick.
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ratings were high .
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In terms of successful investing, slow and steady usually wins the race. Nothing is more steady and sustainable than providing evironmentally friendly cleaning products on an industrial scale to large clients (Costco, Healtcare institutions, etc.) who have interest in the perceived PR and health benefits of using "green" products. The stock price seems to track with the market, but with greater amplitude (and yes, more risk), but when the market does well, this stock does better, plain and simple. Entry at this point is a bit high, but is at a slight dip, so I think that I will still do well.
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Sounds like it cleans a bunch of stuff nobody's going to be using anytime soon.
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way overvalued
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Tennant is one of those sleepy companies that most people just don't even think about. Yes, we all like our floors to be clean, but how often do you really think about how Costco or GM plants clean?
Tennant has 3 distinct channels- direct sales for the industrial market, distribution for the smaller products and national accounts for both. They are the class of the industry in all three.
Most exciting is their cutting edge technology that is focusing on the green movement. Watch this sector of the company- if they can convince the end-user, the distributors will have to follow suit in order to supply their customers. If that happens, you will see more and more products come into play, and the competition will continue to try and play catch-up.
They are well managed in the field, and well run in the executive ranks. Admittedly, they are a bit top-heavy with senior management, and those guys are paid well. But all in all, they have solid products, solid people, and solid margins. Although they are an industrial company, they are well diversified in the industries they serve. Not recession proof, but I would say recession resistant, more so than most others.
The growth for Tennant lies in their ability to capture more of the market in schools, universities, and the healthcare industry- if they can achieve that this will will be a nice, sleepy pick where you can get 8-12% growth each year.
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VALUE LINES - TIMELY STOCKS IN TIMELY INDUSTRIES
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20% short interest.
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Need can never go away; growth is steady; used their products=excellent
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company manages costs, buys back shares, and increases dividends. It may have to cool off for a while, but it will go back up.
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5 Star/Small cap/Pays dividend
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small cap growth
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‘On a successful voyage’, if there is one company that would like to reinforce this view, is Tennant (TNC), a world leader in designing, manufacturing and marketing of cleaning equipment and related products. With key offerings include floor maintenance equipment, outdoor cleaning equipment, aftermarket parts, and floor coating and preservation products. Its operations are spread across North America, Europe and other international markets including the Middle East, Asia, Japan, Latin America and Australia, through direct sales and authorized distributors.
Strong operating results in past few years has led the company to win accolades from all over. Tennant’s sales increased 6%, year over year, in recent concluded quarter, driven by new product introductions and margin expansion from more efficient designs of products.
Going forward, multiple aspects should support sustainable earnings growth for TNC. The company intends to expand internationally and is building a low-cost platform to support its manufacturing marks and launch new products. With the company’s Chinese manufacturing facility initiating operations recently, a revenue momentum story is well anticipated. Moreover with the launch of its new M20 integrated Scrubber-Sweeper and T20 Rider Scrubber, the company has achieved its goal of having 30% of sales coming from new products. Likewise its strategic focus on innovations and geographical expansion may prove handy to the company’s goal to achieve a higher operating margin soon.
Though, its high P/E multiple contrary to industry’s envisages a bit skeptical atmosphere, its horizontal acquisition of Hofmans Machinefabriek provides the company with ample opportunities to nurture.
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