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Tecnoglass Inc (TGLS)
NYSE:TGLS
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Tecnoglass
(NYSE:TGLS)
78Outperform
Positive Factors
Commercial Growth
Tecnoglass' backlog continues to grow, supporting future commercial growth, while it still expects $5-10m monthly contribution from residential vinyl in 2025, and further geographic expansion opportunities.
Financial Performance
Q3 EBITDA was ahead of the Street's expectations, and management raised the midpoints of its 2024 outlook.
Negative Factors
Market Risks
The future is not without risks, such as potential global tariffs from the upcoming presidential election.
Valuation Concerns
TGLS trades at a high valuation, over 3.5 standard deviations above the 5-year median, indicating the current share price includes a premium.
Tecnoglass (TGLS) vs. S&P 500 (SPY)
Market Cap
$3.37B
Dividend Yield0.67%
Average Volume (3M)458.29K
Price to Earnings (P/E)20.9
Beta (1Y)1.85
Revenue Growth6.83%
EPS Growth-10.81%
CountryUS
Employees9,837
SectorBasic Materials
Sector Strength61
IndustryConstruction Materials
Share Statistics
EPS (TTM)3.43
Shares Outstanding46,991,558
10 Day Avg. Volume655,079
30 Day Avg. Volume458,285
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.79
Price to Cash Flow (P/CF)13.80
P/FCF Ratio12.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$96.00Price Target Upside29.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Tecnoglass Business Overview & Revenue Model
Company DescriptionTecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.
How the Company Makes MoneyTecnoglass generates revenue predominantly through the sale of its architectural glass and aluminum products. The company's revenue streams are mainly derived from its operations in the construction industry, where it supplies both residential and commercial projects. Tecnoglass benefits from its strategic relationships with major construction and real estate companies, which help secure large-scale projects. Additionally, the company's vertically integrated structure allows for cost efficiencies and competitive pricing, enhancing its profitability. By leveraging its manufacturing capabilities and distribution network, Tecnoglass effectively captures market share in North and South America, contributing to its revenue growth.
Tecnoglass Financial Statement Overview
Summary
Tecnoglass exhibits strong revenue growth, effective cost management, and a solid balance sheet with an improving equity ratio. The company also shows strong cash generation capabilities. However, there are concerns about operational efficiencies and high liabilities.Income Statement
Tecnoglass has demonstrated strong revenue growth, with a substantial increase in total revenue over the years. The gross profit margin is robust, indicating effective cost management, and the company maintains a healthy net profit margin. However, the slight decline in EBIT and EBITDA margins from 2023 to 2024 suggests potential pressure on operational efficiencies.85
Very Positive
Balance Sheet
The company has a solid equity base with a consistently improving equity ratio, indicating strong financial stability. The debt-to-equity ratio has improved over time, reflecting a reduction in leverage. However, the high total liabilities relative to earlier years present a risk that needs monitoring. ROE is strong, showcasing effective use of equity to generate profits.78
Positive
Cash Flow
Tecnoglass shows a positive trajectory in operating cash flows, indicating strong cash generation capability. The free cash flow growth rate has been impressive from 2023 to 2024, reflecting effective capital management. The operating cash flow to net income ratio indicates efficient conversion of profits into cash. However, the substantial negative cash flow from financing activities suggests potential challenges in managing financial obligations.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 890.18M | 833.26M | 716.57M | 496.79M | 374.92M | Gross Profit |
| 379.97M | 390.93M | 349.50M | 202.58M | 139.25M | EBIT |
| 227.00M | 259.76M | 226.41M | 116.98M | 66.12M | EBITDA |
| 259.06M | 289.44M | 253.32M | 136.60M | 77.68M | Net Income Common Stockholders |
| 161.31M | 182.88M | 155.74M | 68.15M | 23.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 134.88M | 132.41M | 105.72M | 86.99M | 69.29M | Total Assets |
| 1.02B | 962.72M | 734.31M | 591.56M | 532.02M | Total Debt |
| 109.31M | 170.01M | 169.48M | 199.06M | 224.49M | Net Debt |
| -25.57M | 40.50M | 65.81M | 114.04M | 157.59M | Total Liabilities |
| 385.46M | 414.70M | 383.98M | 346.87M | 319.06M | Stockholders Equity |
| 631.18M | 548.02M | 348.82M | 243.86M | 212.38M |
| Cash Flow | Free Cash Flow | |||
| 90.97M | 60.87M | 70.59M | 65.74M | 53.11M | Operating Cash Flow |
| 170.53M | 138.83M | 141.92M | 117.25M | 71.43M | Investing Cash Flow |
| -77.29M | -76.02M | -72.58M | -50.76M | -18.06M | Financing Cash Flow |
| -84.55M | -42.77M | -44.80M | -43.79M | -33.54M |
Tecnoglass Technical Analysis
Positive
74.25
Price Trends
74.34
Negative
75.90
Negative
67.15
Positive
Market Momentum
-0.46
Negative
57.14
Neutral
90.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGLS, the sentiment is Positive. The current price of 74.25 is above the 20-day moving average (MA) of 69.69, below the 50-day MA of 74.34, and above the 200-day MA of 67.15, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 90.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGLS.
Tecnoglass Risk Analysis
Tecnoglass disclosed 56 risk factors in its most recent earnings report. Tecnoglass reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tecnoglass Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.37B | 20.90 | 27.36% | 0.67% | 6.83% | -10.81% | |
69 Neutral | $1.06B | 10.45 | 20.11% | 2.16% | -1.58% | -5.49% | |
69 Neutral | $2.48B | 70.88 | 4.55% | 0.33% | 16.48% | -70.34% | |
65 Neutral | $6.64B | 29.74 | 28.90% | ― | 5.17% | 10.39% | |
47 Neutral | $2.66B | -3.61 | -22.67% | 3.28% | 3.74% | -27.14% | |
44 Neutral | $531.83M | ― | -25.51% | ― | -15.09% | -358.01% |
* Basic Materials Sector Average
Performance Comparison
TGLS
Tecnoglass
74.25
21.19
39.94%
APOG
Apogee
48.31
-9.52
-16.46%
TREX
Trex Company
61.96
-38.14
-38.10%
VSEC
VSE
125.62
46.59
58.95%
JELD
JELD-WEN
6.23
-14.31
-69.67%
Tecnoglass Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 6.10% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Tecnoglass reported a strong 2024 with record revenues and growth in key segments, supported by strategic investments and operational efficiencies. Despite facing some challenges like currency headwinds and potential tariff impacts, the company maintained strong margins and financial flexibility. The outlook for 2025 remains positive, with expectations of continued growth and profitability.Highlights
Record Revenues and Growth in 2024
Tecnoglass reported record revenues of $890 million for 2024, driven by strong performance in both single-family residential and multifamily/commercial segments.
Significant Growth in Single-Family Residential Segment
Single-family residential revenues reached a record $372 million, marking an 11% growth year-over-year. This was driven by market share gains and geographic expansion.
Multifamily and Commercial Growth
Revenues in the multifamily and commercial sectors grew by mid-single digits to $518 million, with a record year-end backlog of $1.1 billion, reflecting a 28% year-over-year growth.
Strong Cash Flow and Financial Position
Generated record operating cash flow of $170.5 million and achieved a net cash position by year-end, enhancing financial flexibility.
Positive Outlook for 2025
Projected full-year 2025 revenues in the range of $940 million to $1.02 billion, with an adjusted EBITDA target of $300 million to $340 million.
Lowlights
Currency Headwinds and Increased Freight Expenses
Faced currency headwinds and increased freight expenses early in the year, although margins improved as currency exchange rates normalized.
Potential Impact of US Aluminum Tariffs
Monitoring potential 25% US tariffs on aluminum, which could impact costs, although steps have been taken to secure alternative sources.
Rising SG&A Expenses
Fourth-quarter SG&A expenses increased to $39.4 million, or 16.4% of revenue, driven by higher transportation, commission expenses, and personnel costs.
Company Guidance
During the Tecnoglass Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance and metrics reflecting its robust performance and strategic outlook. Tecnoglass achieved record revenues of $890 million for 2024, with single-family residential revenues reaching an all-time high of $372 million, and multifamily and commercial business revenues hitting $518 million. The company maintained industry-leading margins, generating an adjusted EBITDA of $275.8 million for the year, reflecting a margin of 31%. Operating cash flow was a record $170.5 million, and Tecnoglass ended the year in a net cash position after repaying $65 million in debt. The backlog at year-end stood at $1.1 billion, marking a 28% year-over-year growth. Looking ahead to 2025, Tecnoglass projects revenues between $940 million to $1.02 billion and an adjusted EBITDA range of $300 million to $340 million. The company plans capital expenditures of $65 to $70 million, focusing on efficiency enhancements and geographical expansion, particularly in the vinyl window market.Tecnoglass Corporate Events
Business Operations and StrategyFinancial Disclosures
Tecnoglass Recognized as Fastest-Growing Company by Fortune
Positive
Oct 30, 2024
Tecnoglass Inc., a top producer of high-end windows and architectural glass, has been named the 27th fastest-growing company in the U.S. by Fortune Magazine, driven by remarkable revenue and EPS growth from 2021 to 2024. This recognition underscores Tecnoglass’s strategic initiatives, innovation, and market strength, solidifying its position in the residential and commercial sectors, while generating impressive shareholder returns.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.