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Tennant Co. – Other Commercial and Service Industry Machinery Manufacturing
tennant company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. with a vision to become a global leader in chemical-free cleaning and other technologies, tennant creates innovative solutions that are changing the way the world cleans. tennant products include equipment used to maintain indoor and outdoor surfaces, as well as tennanttrue® financing solutions, equipment, parts, service, and maintenance to help ensure superior cleaning performance from your tennant machines. products are marketed under the tennant®, nobles®, green machines®, orbio® and alfa brands. founded in 1870 by george h. tennant, tennant company began as a one-man woodworking business, evolved into a successful wood flooring and wood products company, and eventually into a manufacturer of floor cleaning equipment. throughout its history, tennant has remained focused on advancing its industry by aggressively pursuing new technologies and
Analysis Results
Intrinsic Value $284.57
Latest Price $74.79
Relative Value 74% undervalued
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Cash Flow (Millions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 17.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 180 168
2024 212 184
2025 250 202
2026 294 221
2027 345 242
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6550 million. This corresponds to a present value of 4270 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1020 million. Adding in the terminal value gives a total present value of 5290 million.

There are presently 18.6 million outstanding shares, so the intrinsic value per share is 284.57.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 575,300,000
Current Cash 77,400,000
Current Liabilities 261,600,000
Current Debt 5,200,000
Non-Cash Working Capital (NCWC) 241,500,000
Change in NCWC 124,400,000
EBIT 83,500,000
Tax Provision 13,200,000
Depreciation and Amortization 48,700,000
Capital Expenditure -25,000,000
Unlevered Free Cash Flow 217,735,849
Current Assets 526,800,000
Current Cash 123,600,000
Current Liabilities 290,300,000
Current Debt 4,200,000
Non-Cash Working Capital (NCWC) 117,100,000
Change in NCWC 7,900,000
EBIT 83,900,000
Tax Provision 9,200,000
Depreciation and Amortization 53,100,000
Capital Expenditure -19,500,000
Unlevered Free Cash Flow 114,983,265
Current Assets 493,600,000
Current Cash 141,000,000
Current Liabilities 254,300,000
Current Debt 10,900,000
Non-Cash Working Capital (NCWC) 109,200,000
Change in NCWC -53,600,000
EBIT 63,700,000
Tax Provision 7,400,000
Depreciation and Amortization 53,400,000
Capital Expenditure -30,000,000
Unlevered Free Cash Flow 22,030,900
Current Assets 481,000,000
Current Cash 74,600,000
Current Liabilities 274,900,000
Current Debt 31,300,000
Non-Cash Working Capital (NCWC) 162,800,000
Change in NCWC 1,634,000
EBIT 71,800,000
Tax Provision 8,100,000
Depreciation and Amortization 54,400,000
Capital Expenditure -38,900,000
Unlevered Free Cash Flow 78,164,000
Current Assets 468,644,000
Current Cash 85,609,000
Current Liabilities 248,874,000
Current Debt 27,005,000
Non-Cash Working Capital (NCWC) 161,166,000
Change in NCWC 2,073,000
EBIT 57,978,000
Tax Provision 2,304,000
Depreciation and Amortization 54,420,000
Capital Expenditure -21,555,000
Unlevered Free Cash Flow 89,189,050
Current Assets 423,115,000
Current Cash 58,398,000
Current Liabilities 236,507,000
Current Debt 30,883,000
Non-Cash Working Capital (NCWC) 159,093,000
Change in NCWC 48,574,000
EBIT 27,044,000
Tax Provision 4,913,000
Depreciation and Amortization 43,253,000
Capital Expenditure -20,437,000
Unlevered Free Cash Flow 98,434,000
Current Assets 297,922,000
Current Cash 58,033,000
Current Liabilities 132,829,000
Current Debt 3,459,000
Non-Cash Working Capital (NCWC) 110,519,000
Change in NCWC -2,068,000
EBIT 68,647,000
Tax Provision 19,877,000
Depreciation and Amortization 18,300,000
Capital Expenditure -26,526,000
Unlevered Free Cash Flow 37,831,479
Current Assets 293,644,000
Current Cash 51,300,000
Current Liabilities 133,216,000
Current Debt 3,459,000
Non-Cash Working Capital (NCWC) 112,587,000
Change in NCWC 524,000
EBIT 64,375,000
Tax Provision 18,336,000
Depreciation and Amortization 18,031,000
Capital Expenditure -24,780,000
Unlevered Free Cash Flow 34,740,909
Current Assets 347,089,000
Current Cash 92,962,000
Current Liabilities 145,630,000
Current Debt 3,566,000
Non-Cash Working Capital (NCWC) 112,063,000
Change in NCWC 5,474,000
EBIT 72,097,000
Tax Provision 18,887,000
Depreciation and Amortization 20,063,000
Capital Expenditure -19,583,000
Unlevered Free Cash Flow 58,468,957
Current Assets 315,296,000
Current Cash 80,984,000
Current Liabilities 131,526,000
Current Debt 3,803,000
Non-Cash Working Capital (NCWC) 106,589,000
Change in NCWC 6,735,000
EBIT 62,403,000
Tax Provision 19,647,000
Depreciation and Amortization 20,246,000
Capital Expenditure -14,775,000
Unlevered Free Cash Flow 54,133,504
Current Assets 273,446,000
Current Cash 53,940,000
Current Liabilities 121,694,000
Current Debt 2,042,000
Non-Cash Working Capital (NCWC) 99,854,000
Change in NCWC -77,000
EBIT 61,919,000
Tax Provision 18,306,000
Depreciation and Amortization 20,872,000
Capital Expenditure -15,623,000
Unlevered Free Cash Flow 48,164,815

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