4 models fit Tennant Company Common Stock and they disagree: 0 of 4 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Bronze42
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionTennant Company Common Stock (TNC)
Fair value (4 models)
$59.87
ACCE price target
$70.00
Rating
Fairly valued
Horizon
12 months
Fair value published on 16 Oct 2026, 00:00 CEST; previously $61.90 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 13 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 15:04 CEST.
Price used: $66.26 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, Dividend discount, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
10.7% above
-9.6% to fair value
ACCE score
35
out of 100
Analysts
67% buy
3 covering
P/E
63.7x
forward 11.8x
1-year return
-18.4%
Dividend yield
1.85%
Tennant Company Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Tennant makes floor cleaning equipment, including ride-on and walk-behind scrubbers and sweepers sold under the Tennant and Braun brands, plus Trilliant surface-preparation and coatings equipment for commercial and industrial buyers. The moat is mostly installed-base service and parts revenue and a dealer network that is hard to replicate, though its 38.8% gross margin is not the pricing power that name suggests. Revenue growth of 1.7% and a 5.3% operating margin leave little room for error, and a trailing P/E of 62.8 against a forward P/E of 11.8 says earnings are depressed and expected to recover, which is the bet to test. The score of 35/100 and a return on equity of 3.1% point to a business still earning below its cost of capital, with no index membership to force buying. This looks like a turnaround candidate worth a deeper look only if the margin recovery is visible in the next two reporting periods.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapsing year over year
Earnings are down 59.3% YoY while revenue grew only 1.7%, and net margin is just 1.5%. The P/E of 62.1 rests on a depressed earnings base, not on growth.
high
Score down sharply in 90 days
The ACCE score fell from 46 to 35 over 90 days, with Momentum at 17 and Growth at 19, so the deterioration is broad rather than confined to one factor.
moderate
Heavy short interest
Short interest stands at 11.6% of the float. Insider buying of $1.69M against $0.39M in sales is a counterweight worth weighing against that bearish positioning.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-10-19 · prices to Oct 23, 2026
Why it could do well
Analysts rate the stock Buy or Strong Buy, and their mean price target sits 35.9% above the current share price.
Forward earnings multiple of 11.8x sits well below the sector median of 23.8x, leaving room if earnings recover.
Free cash flow over the last twelve months reached $43M, a 3.9% yield, and the share count fell 2.7% last year.
Why it could disappoint
Latest quarter's earnings per share missed expectations by 32.5%, with 0.83 reported against 1.23 expected.
Net margin of just 1.5% and return on equity of 3.1% leave little profit from each dollar of sales or shareholder capital.
The share price trades 10.7% above the model fair value of $59.87, and the consensus of valuation models sees it falling.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 2, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where TNC's valuation models land
Price
$66.26
Model fair value
$59.87
Model range
$25.52 to $89.97
Fair value $59.87
Price $66.26
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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