Tennant Company Presents the AI Cleaning Robot to the Public!
On February 22, Tennant signed an exclusive technology agreement with Brain Corp. to accelerate the innovation and adoption of AI-powered autonomous floor cleaning robots. I reported on this early on. With the signing of the agreement, it was announced that the new X4 ROVR would be launched on the market as early as Q2 2024.
This is the company's First purpose-built autonomous mobile robot (AMR). The X4 ROVR is said to offer great maneuverability, be cheaper than previous robots and is specially designed for use in smaller spaces. It will be powered by Brain Corp's navigation software.
The launch aims to dramatically accelerate the transition to robotic cleaning and drive adoption in new segments. The potential of AI and robotics in the cleaning industry is huge when you consider that autonomous robots make work easier, help overcome staff shortages and deliver safe and efficient cleaning results. In warehouses, schools and hospitals, there are hardly any automated cleaning solutions to date. This offers potential.
Tennant believes that the X4 ROVR will increase the acceptance of cleaning robots, "as it provides an entry point for customers for whom robot technology was previously out of reach". The X4 ROVR is the first of many planned future AMR cleaning products powered by Brain Corp's next-generation technology that will be available exclusively on Tennant equipment. What I like about the agreement is that with the X4 ROVR, they are offering an all-in-one AMR solution where the equipment and autonomous services are bundled as one solution sold by Tennant. Specifically, this means that Tennant will benefit from recurring revenue for autonomous services in the future.
On March 19, Tennant unveiled its full-scale cleaning robot to the public for the first time. It highlighted its "unparalleled cleaning performance and adaptability in a wide range of commercial environments". Tennant pointed out that the robot is designed for retail, healthcare, education and numerous building service company (BSC) applications.
"The X4 ROVR robot is more than just a cleaning machine," said CEO Dave Huml. "It's an opportunity for our customers to adopt leading innovations, align their cleaning teams to higher value, higher priority tasks and improve the efficiency, productivity and profitability of their overall operations." The new robot has been available to order since this week, according to Tennant.
Final thought
Tennant could succeed in turning the cleaning industry on its head with the introduction of the X4 ROVR and dramatically accelerate the transition to robotic cleaning, which should translate into accelerating sales growth in the coming years. The forecast for the new year is very conservative. The analyses assume single-digit sales growth for this year. With a P/E ratio of 20 and a P/S ratio of 2, the share is not expensive. If it becomes clear that the X4 ROVR is ushering in a new growth phase at Tennant, then a revaluation of the share is possible. The share reacted very positively to the news and was able to break out of the consolidation to a new all-time high yesterday.
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