Tecnoglass (TGLS) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: 0.79%
• Average Volume (3M): 419.85K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.54
• Revenue Growth: 16.89%
• EPS Growth: 24.91%
• Country: US
• Employees: 9,837
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Construction Materials
• EPS (TTM): 1.03
• Shares Outstanding: 46,987,150
• 10 Day Avg. Volume: 518,455
• 30 Day Avg. Volume: 419,845
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.77
• Enterprise Value/Gross Profit: 8.43
• Enterprise Value/Ebitda: 12.33
• 1Y Price Target: $77.00
• Price Target Upside: 8.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $77.00 ▲(8.79% Upside)

Tecnoglass's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. However, technical indicators suggest bearish momentum, which tempers the overall score. The valuation is reasonable, but the modest dividend yield offers limited income potential.

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 Business Overview & Revenue Model

Company Description

Tecnoglass Inc. (TGLS) is a leading manufacturer of architectural glass and windows, primarily serving the construction and building sectors. Based in Barranquilla, Colombia, the company specializes in producing high-quality glass products, including energy-efficient windows and facades, which are designed for commercial, residential, and industrial applications. Tecnoglass is known for its innovative designs and sustainable practices, catering to a growing demand for eco-friendly construction materials.

How the Company Makes Money

Tecnoglass generates revenue through the sale of its glass and window products to various sectors, including commercial, residential, and industrial construction. The company operates a vertically integrated business model, which allows it to control the entire manufacturing process, from raw material procurement to final product delivery. Key revenue streams include the direct sale of glass products, framing systems, and installation services. Additionally, Tecnoglass benefits from strategic partnerships with construction firms, architects, and builders, which help in securing large contracts and projects. The company also focuses on expanding its market presence both domestically in Colombia and internationally, particularly in the United States, which significantly contributes to its earnings.

Tecnoglass Financial Statement Overview

Summary

Tecnoglass exhibits strong financial health with consistent revenue growth and robust profitability margins. The balance sheet is solid with low leverage and high return on equity, although the increase in debt should be monitored. Cash flow generation is generally healthy, but the recent decline in free cash flow growth needs attention.

Income Statement

Tecnoglass has demonstrated strong revenue growth with a 3.9% increase in TTM, following a consistent upward trend over the past few years. The company maintains healthy margins, with a gross profit margin of 44.7% and a net profit margin of 19.1% in TTM. While EBIT and EBITDA margins have slightly decreased compared to previous years, they remain robust at 21.1% and 22.9% respectively, indicating efficient cost management and profitability.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.15 in TTM, showcasing prudent leverage management. Return on equity is strong at 27.4%, indicating effective utilization of shareholder funds. The equity ratio stands at 62.3%, highlighting a stable capital structure. However, the slight increase in total debt over the years warrants monitoring.

Cash Flow

Tecnoglass's cash flow performance is mixed, with a decline in free cash flow growth by 13.4% in TTM. The operating cash flow to net income ratio is moderate at 0.54, suggesting adequate cash generation relative to earnings. The free cash flow to net income ratio is healthy at 0.84, indicating good cash conversion, although the recent decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	955.73M	890.18M	833.26M	716.57M	496.79M	374.92M
Gross Profit	427.60M	379.97M	390.93M	349.50M	202.58M	139.25M
EBITDA	292.19M	259.06M	289.44M	253.32M	124.11M	77.68M
Net Income	182.82M	161.31M	182.88M	155.74M	68.15M	23.88M
Balance Sheet
Total Assets	1.18B	1.02B	962.72M	734.31M	591.56M	532.02M
Cash, Cash Equivalents and Short-Term Investments	140.85M	137.53M	132.41M	105.72M	86.99M	70.06M
Total Debt	109.23M	109.31M	170.01M	169.48M	199.06M	224.49M
Total Liabilities	445.21M	385.46M	414.70M	383.98M	346.87M	319.06M
Stockholders Equity	736.00M	631.18M	548.02M	348.82M	243.86M	212.38M
Cash Flow
Free Cash Flow	115.16M	90.97M	60.87M	70.59M	65.74M	53.11M
Operating Cash Flow	173.63M	170.53M	138.83M	141.92M	117.25M	71.43M
Investing Cash Flow	-101.86M	-77.29M	-76.02M	-72.58M	-50.76M	-18.06M
Financing Cash Flow	-61.69M	-84.55M	-42.77M	-44.80M	-43.79M	-33.54M

Tecnoglass Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGLS, the sentiment is Negative. The current price of 70.78 is below the 20-day moving average (MA) of 74.29, below the 50-day MA of 75.50, and below the 200-day MA of 76.31, indicating a bearish trend. The MACD of -1.49 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 52.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TGLS.

Tecnoglass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMID	78 Outperform	$229.00M	18.11	27.87%	―	32.97%	160.17%
CPAC	78 Outperform	$601.42M	10.13	16.29%	7.38%	3.95%	27.28%
TTAM	76 Outperform	$2.86B	―		0.52%	―	―
EXP	75 Outperform	$7.49B	17.01	31.87%	0.44%	0.88%	-4.17%
TGLS	71 Outperform	$3.41B	18.66	27.89%	0.79%	16.89%	24.91%
Sector *	61 Neutral	$10.24B	6.18	0.71%	2.90%	3.45%	-36.02%
LOMA	58 Neutral	$1.09B	16.62	8.93%	―	-33.46%	-32.34%

Tecnoglass Corporate Events

Tecnoglass Recognized as Fastest-Growing Company by Fortune

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.