Latest Ratios: P/E Ratio 36.7x · EV/EBITDA 12.9x · 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 | $1.6B | $1.4B | $1.6B | $1.7B | $1.2B | $1.5B | $1.3B | $1.4B | $956M | $1.3B | $1.3B |
| Enterprise Value | $1.8B | $1.6B | $1.7B | $1.9B | $1.4B | $1.7B | $1.5B | $1.7B | $1.2B | $1.6B | $1.3B |
| P/E Ratio → | 36.74 | 31.23 | 18.61 | 15.90 | 17.34 | 23.56 | 38.77 | 31.42 | 28.63 | — | 27.49 |
| P/S Ratio | 1.30 | 1.14 | 1.21 | 1.40 | 1.05 | 1.40 | 1.31 | 1.26 | 0.85 | 1.28 | 1.58 |
| P/B Ratio | 2.67 | 2.27 | 2.50 | 3.01 | 2.44 | 3.51 | 3.22 | 3.98 | 3.02 | 4.31 | 4.59 |
| P/FCF | 36.06 | 31.62 | 22.80 | 10.59 | — | 32.99 | 12.60 | 43.57 | 16.36 | 41.16 | 40.82 |
| P/OCF | 24.02 | 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 | 12.87 | 11.50 | 10.10 | 9.84 | 10.35 | 11.67 | 12.99 | 13.86 | 10.90 | 22.82 | 14.49 |
| EV / EBIT | 22.19 | 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 | 6.7% | 6.7% | 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 | 7.5% | 7.5% | 11.6% | 14.5% | 9.7% | 11.3% | 7.4% | 8.6% | 7.2% | 4.6% | 21.3% |
| ROCE | 8.7% | 8.7% | 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 | 2.46 | 2.46 | 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 | 1.70 | 1.70 | 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 | 1.4% | 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 | 2.7% | 3.2% | 5.4% | 6.3% | 5.8% | 4.2% | 2.6% | 3.2% | 3.5% | — | 3.6% |
| FCF Yield | 2.8% | 3.2% | 4.4% | 9.4% | — | 3.0% | 7.9% | 2.3% | 6.1% | 2.4% | 2.4% |
| Buyback Yield | 5.7% | 6.5% | 1.3% | 1.2% | 0.4% | 1.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.0% |
| Total Shareholder Yield | 7.0% | 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 |
Operating margin compression
According to current market data, Tennant's TTM P/E ratio of 38.62 appears significantly elevated relative to its forward P/E of 17.81, suggesting that investors are pricing in a sharp recovery in profitability that remains unsupported by the company's recent trend of contracting top-line revenue and margin compression.
The wide gap between trailing and forward multiples indicates that the market is heavily discounting current operational headwinds in favor of a projected earnings rebound. Given the recent contraction in net income, the current valuation appears to rely on optimistic assumptions regarding the company's ability to restore operating margins to historical norms.
As reported in recent financial statements, Tennant's operating margin has compressed to a marginal 1.6% in 2026Q1, a stark decline from the double-digit levels observed in early 2024, which highlights the company's inability to scale its high fixed-cost base during periods of revenue contraction.
The volatility in gross margins, which fell from 44.2% in 2024Q1 to 38.1% in 2026Q1, suggests that the company lacks the pricing power to fully offset inflationary pressures on raw materials. This trend warrants concern, as the core earning power of the business appears increasingly fragile under current market conditions.
Based on quarterly data, Tennant's ROIC has deteriorated to a negligible 0.4% in 2026Q1, down from 3.8% in 2024Q1, indicating that the company is currently failing to generate returns on invested capital that exceed its cost of capital, thereby destroying shareholder value in the near term.
The consistent decline in ROIC reflects both the compression of operating margins and a potential misallocation of capital toward share repurchases during a period of operational weakness. Investors should monitor whether management can pivot toward more productive R&D investments to reverse this trend of decaying capital efficiency.
According to recent filings, the cash conversion cycle has extended to 118 days in 2026Q1, driven by rising inventory levels and collection delays, which suggests that Tennant is struggling to maintain the working capital efficiency required to support its direct-to-site service and distribution model.
The increase in the cash conversion cycle indicates that capital is becoming trapped in inventory and receivables, further straining the company's liquidity position. This inefficiency appears to be a structural headwind that exacerbates the impact of revenue contraction on the company's overall cash flow generation.
The P/E ratio is frequently misapplied to Tennant's business model, as it obscures the significant impact of non-recurring operational costs and working capital volatility that currently distort the company's reported net income and fail to capture the underlying cash-generating capacity of the service-heavy business.
Investors should prioritize EV/EBITDA or free cash flow yield over P/E, as these metrics better account for the company's debt structure and the capital-intensive nature of its direct service network. Relying on P/E in a period of earnings volatility risks misinterpreting a temporary margin trough as a permanent valuation floor.
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 36.7x. The historical average is 25.5x. This places it at the 93th percentile of its historical range.
Tennant Company's current EV/EBITDA is 12.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
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 36.7x. This is at the 93th 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 1.36% with a payout ratio of 50.0%.
Tennant Company has 40.2% gross margin and 6.7% operating margin.
Tennant Company's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.