What is Tennant doing? $TNC (-1.08%)
Tennant is a global manufacturer of cleaning machines and systems. The portfolio includes, among other things:
- scrubber dryers
- Sweepers (manual and autonomous)
- High pressure cleaners
- Cleaning chemicals
- Robotic solutions for professional cleaning (e.g. autonomous floor cleaners)
The company primarily serves business customers: Industry, logistics, retail, airports, hospitals and building cleaning.
Investment Case:
- Solid business model with recurring revenues (e.g. service & maintenance)
- Focus on innovation (e.g. autonomous cleaning solutions with AI)
- Long-term growing market due to urbanization and hygiene requirements
- Dividend payer with continuous distribution
Risks:
- Cyclical demand (depending on customers' willingness to invest)
- Competitive pressure (e.g. Nilfisk, Kärcher, various Chinese suppliers)
- Dependence on the industrial sector, partial price pressure for large orders
What is your assessment? For me, the share currently seems to be attractively valued for a long-term investment. The dividend growth in recent years is also interesting.
