Tecnoglass Inc. Fundamental Analysis (NYSE: TGLS)
Tecnoglass Inc. (NYSE: TGLS) shows strong financial fundamentals with a PE ratio of 14.34, profit margin of 12.36%, and ROE of 17.29%. The company generates $1.1B in annual revenue with strong year-over-year growth of 10.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TGLS's fundamental strength across five key dimensions:
Efficiency Score
WeakTGLS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTGLS trades at attractive valuation levels.
Growth Score
ModerateTGLS shows steady but slowing expansion.
Financial Health Score
ExcellentTGLS maintains a strong and stable balance sheet.
Profitability Score
ModerateTGLS maintains healthy but balanced margins.
Key Financial Metrics
Is TGLS Expensive or Cheap?
P/E Ratio
TGLS trades at 14.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TGLS's PEG of -0.53 indicates potential undervaluation.
Price to Book
The market values Tecnoglass Inc. at 2.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.69 times EBITDA. This is generally considered low.
How Well Does TGLS Make Money?
Net Profit Margin
For every $100 in sales, Tecnoglass Inc. keeps $12.36 as profit after all expenses.
Operating Margin
Core operations generate 18.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.29 in profit for every $100 of shareholder equity.
ROA
Tecnoglass Inc. generates $9.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tecnoglass Inc. generates limited operating cash flow of $82.11M, signaling weaker underlying cash strength.
Free Cash Flow
Tecnoglass Inc. produces free cash flow of $43.79M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.99 in free cash annually.
FCF Yield
TGLS converts 2.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How TGLS Stacks Against Its Sector Peers
| Metric | TGLS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.34 | 27.26 | Better (Cheaper) |
| ROE | 17.29% | 1203.00% | Weak |
| Net Margin | 12.36% | 200.00% | Weak |
| Debt/Equity | 0.29 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.86 | 3.29 | Neutral |
| ROA | 9.07% | 3162.00% | Weak |
TGLS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tecnoglass Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
159.61%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
564.33%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
88.90%
Industry Style: Cyclical, Commodity, Value
High Growth