A Look At Tennant (TNC) Valuation After Recent Short Term Share Price Strength
Tennant (TNC) has drawn fresh attention after recent share price moves, with the stock showing gains over the past month and past 3 months that stand out against its weaker 1 year total return.
See our latest analysis for Tennant.
The recent 30 day share price return of 6.01% and 90 day share price return of 15.03% contrast with a 1 year total shareholder return decline of 3.62%, which points to momentum building more in the short term than over the past year.
If Tennant’s recent move has you thinking about where else capital equipment trends might lead, it could be worth checking out our 30 robotics and automation stocks as a starting list of related ideas.
With Tennant trading around $83.04, sitting below a US$110 analyst price target and an estimated intrinsic value gap of about 22%, you have to ask yourself: is this a genuine entry point, or is future growth already priced in?
Most Popular Narrative: 23.8% Undervalued
At $83.04, Tennant is sitting below a narrative fair value of $109, which frames the recent share price strength in a different light for long term investors.
Accelerated adoption of autonomous mobile robots (AMRs) and equipment-as-a-service programs is expanding Tennant's recurring revenue base, supported by robust customer demand amid labor shortages and higher labor costs. This is likely to drive both future revenue and margin expansion. Heightened focus on hygiene and cleanliness standards in facilities globally, especially post-pandemic, is enlarging Tennant's addressable market and supporting stronger order pipelines, which should translate into steady sales growth over time.
Want to see what earnings profile and margin reset this narrative is banking on, and how that ties into the $109 fair value path?
Result: Fair Value of $109 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still pressure points to watch, including exposure to weaker international markets and the risk that pricing power fades if low cost competitors undercut Tennant.
Find out about the key risks to this Tennant narrative.
Build Your Own Tennant Narrative
If you see Tennant’s story differently, or prefer to work through the numbers yourself, you can build a custom view in minutes, Do it your way.
A great starting point for your Tennant research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
Looking for more investment ideas?
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- Target quality at a discount by scanning our 53 high quality undervalued stocks that may line up with your preferred mix of price, earnings, and balance sheet strength.
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- Hunt for earlier stage potential by checking the 28 elite penny stocks with strong financials that pass fundamental filters rather than relying purely on hype.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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