Tecnoglass (TGLS) AI Stock Analysis

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Tecnoglass

(NYSE:TGLS)

Rating:76Outperform

Price Target:

$86.00

▲(12.40%Upside)

Tecnoglass exhibits strong financial performance and a positive outlook based on recent earnings. Despite technical indicators suggesting short-term weakness, the company's robust revenue growth and strategic initiatives provide a solid foundation for long-term success, supporting its overall stock score.

Positive Factors

Financial Performance

Q3 EBITDA was ahead of the Street's expectations, and management raised the midpoints of its 2024 outlook.

Future 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.

Negative Factors

Market Volatility

Acknowledge expectations were high and review conclusion could create some volatility.

Tecnoglass (TGLS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.60B

Dividend Yield0.78%

Average Volume (3M)316.39K

Price to Earnings (P/E)20.7

Beta (1Y)1.58

Revenue Growth11.73%

EPS Growth6.58%

CountryUS

Employees9,837

SectorBasic Materials

Sector Strength73

IndustryConstruction Materials

Share Statistics

EPS (TTM)0.92

Shares Outstanding46,988,530

10 Day Avg. Volume364,646

30 Day Avg. Volume316,389

Financial Highlights & Ratios

PEG Ratio0.07

Price to Book (P/B)4.21

Price to Sales (P/S)0.00

P/FCF Ratio20.78

Enterprise Value/Market Cap0.43

Enterprise Value/Revenue0.44

Enterprise Value/Gross Profit3.81

Enterprise Value/Ebitda1.64

Forecast

1Y Price Target

$89.00

Price Target Upside16.32% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Tecnoglass Business Overview & Revenue Model

Company DescriptionTecnoglass Inc. (TGLS) is a leading manufacturer of architectural glass, windows, and associated aluminum products for the global residential and commercial construction industries. Headquartered in Barranquilla, Colombia, the company primarily serves the North, Central, and South American markets. Tecnoglass's core products include tempered, laminated, insulated, and digitally printed glass, as well as aluminum windows and facades, tailored to enhance the aesthetic and functional attributes of buildings.

How the Company Makes MoneyTecnoglass generates revenue through the manufacturing and sale of its diverse range of architectural glass and aluminum products. The company engages in both custom and standard product lines, catering to the needs of small to large-scale construction projects. Key revenue streams include direct sales to developers, contractors, and distributors in the construction industry. Tecnoglass benefits from strategic partnerships with construction firms and distributors that facilitate market penetration and enhance sales volume. The company's earnings are also influenced by its operational efficiency and cost management, allowing it to offer competitive pricing while maintaining quality. Additionally, Tecnoglass's geographic reach into various American markets aids in diversifying its revenue sources and mitigating regional economic fluctuations.

Tecnoglass Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 8.25%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

Tecnoglass reported a strong start to 2025 with record revenue growth and significant operational improvements, driven by strategic initiatives and acquisitions. Despite challenges from tariffs and higher expenses, the company's outlook remains optimistic, with measures in place to mitigate potential impacts.

Q1-2025 Updates

Positive Updates

Record Revenue Growth

Tecnoglass reported a 15% year-over-year increase in revenue, reaching a first quarter record of $222.3 million, driven by double-digit organic growth across residential and multifamily commercial businesses.

Strong Single-Family Residential Performance

Single-family residential revenues grew 21.6% year over year to $88.9 million, attributed to strength in Florida operations, geographic expansion, and increased brand recognition.

Multifamily and Commercial Business Growth

The multifamily and commercial segment saw an 11.6% year-over-year revenue increase to $133.4 million, supported by an expanding backlog.

Adjusted EBITDA and Margin Improvement

Adjusted EBITDA increased to $70.2 million with a margin of 31.6%, compared to $51 million and a 26.5% margin in the prior year, driven by operational efficiencies and favorable FX dynamics.

Strategic Acquisition

Completed acquisition of Continental Glass Systems, adding approximately $30 million in annualized revenue and enhancing U.S. production capabilities.

Strong Cash Position

Record cash position of $157.3 million and total liquidity of approximately $330 million, providing substantial financial flexibility.

Updated 2025 Outlook

Raised revenue outlook for full-year 2025 to $960 million to $1.02 billion and updated adjusted EBITDA outlook to $305 million to $330 million.

Negative Updates

Impact of Tariffs

Facing $25 million impact from aluminum tariffs for 2025, with strategies in place to mitigate these costs.

Increase in SG&A Expenses

SG&A expenses rose to $42.5 million or 19.1% of total revenues, up from $33.6 million or 17.5% of total revenues in the prior year, due to higher transportation, commission, personnel, and tariff expenses.

Vinyl Product Line Challenges

Lower than expected growth in the vinyl product line due to initial business challenges and incomplete product offerings.

Company Guidance

During Tecnoglass Inc.'s first quarter 2025 earnings call, the company reported a 15% year-over-year revenue increase, reaching a record $222.3 million, with significant growth in both single-family residential and multifamily commercial sectors. The single-family residential segment saw a 21.6% rise in revenues, totaling $88.9 million, while multifamily and commercial revenues grew by 11.6% to $133.4 million. The company's adjusted EBITDA margin improved to 31.6% from 26.5% the previous year. Tecnoglass highlighted a record multiyear backlog of $1.14 billion, providing substantial visibility into future projects. The company also reported a strong cash position of $157.3 million at quarter-end. Additionally, Tecnoglass completed the acquisition of Continental Glass Systems, which is expected to contribute approximately $30 million in annualized revenue. For the full year 2025, Tecnoglass raised its revenue outlook to a range of $960 million to $1.02 billion and updated its adjusted EBITDA guidance to between $305 million and $330 million.

Tecnoglass Financial Statement Overview

Summary

Tecnoglass exhibits solid financial health across all verticals, with strong revenue growth and efficient operational performance. The balance sheet reflects prudent management of debt, and cash flows highlight excellent cash generation capabilities. Monitoring asset trends and maintaining growth momentum are advisable.

Income Statement

Very Positive

Tecnoglass demonstrates strong income statement performance with a consistent upward trajectory in revenue, from $374.9M in 2020 to $919.8M in TTM 2025, indicating a robust revenue growth rate. The gross profit margin and net profit margin are healthy, with TTM 2025 figures at approximately 43.8% and 18.9%, respectively. The company also maintains solid EBIT and EBITDA margins, showcasing efficient operational management.

Balance Sheet

Positive

The balance sheet is stable, with a debt-to-equity ratio declining over time, reflecting prudent financial leverage. The equity ratio is strong, with equity constituting a significant portion of total assets, enhancing financial stability. However, total assets decreased in TTM 2025 compared to 2024, which may warrant monitoring.

Cash Flow

Very Positive

Cash flow analysis reveals strong operating cash flow, consistently exceeding net income, which is a positive indicator of cash generation efficiency. Free cash flow growth is significant, with TTM 2025 showing a marked increase compared to previous years, underlining the company's robust cash management and potential for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	919.84M	890.18M	833.26M	716.57M	496.79M	374.92M
Gross Profit	402.50M	379.97M	390.93M	349.50M	202.58M	139.25M
EBITDA	212.83M	259.06M	289.44M	253.32M	136.60M	77.68M
Net Income	173.77M	161.31M	182.88M	155.74M	68.15M	23.88M
Balance Sheet
Total Assets	501.53M	1.02B	962.72M	734.31M	591.56M	532.02M
Cash, Cash Equivalents and Short-Term Investments	157.30M	137.53M	132.41M	105.72M	86.99M	69.29M
Total Debt	109.04M	109.31M	170.01M	169.48M	199.06M	224.49M
Total Liabilities	124.07M	385.46M	414.70M	383.98M	346.87M	319.06M
Stockholders Equity	685.14M	631.18M	548.02M	348.82M	243.86M	212.38M
Cash Flow
Free Cash Flow	168.18M	90.97M	60.87M	70.59M	65.74M	53.11M
Operating Cash Flow	183.98M	170.53M	138.83M	141.92M	117.25M	71.43M
Investing Cash Flow	-85.29M	-77.29M	-76.02M	-72.58M	-50.76M	-18.06M
Financing Cash Flow	-75.30M	-84.55M	-42.77M	-44.80M	-43.79M	-33.54M

Tecnoglass Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price76.51

Price Trends

50DMA

79.91

Negative

100DMA

75.10

Positive

200DMA

75.22

Positive

Market Momentum

MACD

-1.69

Positive

RSI

42.33

Neutral

STOCH

63.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGLS, the sentiment is Neutral. The current price of 76.51 is below the 20-day moving average (MA) of 80.17, below the 50-day MA of 79.91, and above the 200-day MA of 75.22, indicating a neutral trend. The MACD of -1.69 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 63.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 2 New Risks

We are subject to trade investigations conducted by U.S. authorities over Colombian products that may result in additional duties for our products. Q4, 2024

Our business could be negatively impacted by potential tariffs imposed by the U.S government and trade tensions between the U.S. and Colombia. Q4, 2024

Tecnoglass Peers Comparison

Overall Rating

UnderperformOutperform

Sector (43)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USLM	78 Outperform	$2.93B	24.37	25.44%	0.23%	17.83%	50.28%
TGLS	76 Outperform	$3.60B	20.69	27.61%	0.78%	11.73%	6.58%
SXT	73 Outperform	$4.42B	34.43	11.87%	1.56%	6.30%	41.01%
HL	72 Outperform	$3.81B	54.28	3.49%	0.25%	41.04%	―
AVNT	71 Outperform	$3.15B	31.83	4.32%	3.14%	3.58%	-5.17%
SMG	57 Neutral	$3.87B	133.99	4.98%	3.83%	0.75%	―
Sector *	43 Neutral	AU$1.40B	-6.18	-40.62%	4.19%	-4.78%	-42.91%

* Basic Materials Sector Average

Performance Comparison

TGLS

Tecnoglass

76.51

25.90

51.18%

Hecla Mining Company

6.03

0.84

16.18%

AVNT

Avient

34.42

-6.52

-15.93%

SMG

Scotts Miracle-Gro Company

68.97

8.69

14.42%

SXT

Sensient Technologies

105.15

32.64

45.01%

USLM

United States Lime & Minerals

102.43

31.93

45.29%

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

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025