Tennant stock falls 14.3% as analysts cite weak EPS growth

Tennant (TNC) shares have declined to $65.94 over the past six months, erasing 14.3% of shareholder capital while the S&P 500 index rose by the same margin. The drawdown follows softer quarterly results, prompting StockStory analysts to recommend passing on the stock in favor of other opportunities.

The analysts attribute their caution to three specific financial metrics that suggest underlying weakness in the company's long-term performance. First, Tennant's sales have grown at a compounded annual rate of just 2.5% over the last five years, a pace the firm notes falls short of its internal benchmarks for quality companies. Second, earnings per share (EPS) have actually declined by 2.1% annually over that same five-year period, even as revenue expanded. This divergence indicates that the company has become less profitable on a per-share basis as it has grown.

Third, the firm points to a decrease in return on invested capital (ROIC) over recent years. ROIC measures the operating profit a company generates relative to the debt and equity it has raised. The analysts describe this declining return as a potential symptom of fewer profitable growth opportunities for management, despite their past track record.

At its current price of $65.94, Tennant trades at a forward price-to-earnings multiple of 13.4 times. While StockStory describes this valuation as reasonable, the firm does not see a significant opportunity at present. Instead, the analysts suggest investors look toward an "all-weather" company that owns the Taco Bell brand, without specifying the ticker symbol in the provided text.

The report positions Tennant against a broader market backdrop where quality stocks are being separated from expensive ones. The firm highlights its AI-driven screening system, which it claims identified Palantir before it rose 1,662% between October 2022 and February 2026, AppLovin before a 753% run from February 2024 to February 2026, and Nvidia before a 1,178% increase from January 2023 to February 2026. Other names on its lists include Nvidia, which gained 1,460% between June 2020 and June 2025, and Comfort Systems, which rose 1,154% over the same period.