TECNOGLASS INC (TGLS) Stock Fundamental Analysis
NYSE:TGLS - New York Stock Exchange, Inc. - KYG872641009 - Common Stock - Currency: USD
Overall TGLS gets a fundamental rating of 7 out of 10. We evaluated TGLS against 41 industry peers in the Building Products industry. TGLS gets an excellent profitability rating and is at the same time showing great financial health properties. TGLS has a decent growth rate and is not valued too expensively. These ratings could make TGLS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year TGLS was profitable.
In the past year TGLS had a positive cash flow from operations.
In the past 5 years TGLS has always been profitable.
Each year in the past 5 years TGLS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.27%, TGLS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
TGLS has a Return On Equity of 25.36%. This is in the better half of the industry: TGLS outperforms 78.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.50%, TGLS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TGLS is significantly above the industry average of 12.76%.
The 3 year average ROIC (25.80%) for TGLS is well above the current ROIC(21.50%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.27% | ||
| ROE | 25.36% | ||
| ROIC | 21.5% |
ROA(3y)18.69%
ROA(5y)14.42%
ROE(3y)34.52%
ROE(5y)28.6%
ROIC(3y)25.8%
ROIC(5y)21.42%
1.3 Margins
Looking at the Profit Margin, with a value of 18.89%, TGLS belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Profit Margin of TGLS has grown nicely.
TGLS has a Operating Margin of 26.67%. This is amongst the best in the industry. TGLS outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of TGLS has grown nicely.
TGLS has a better Gross Margin (43.79%) than 87.80% of its industry peers.
In the last couple of years the Gross Margin of TGLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.67% | ||
| PM (TTM) | 18.89% | ||
| GM | 43.79% |
OM growth 3Y2.69%
OM growth 5Y13.32%
PM growth 3Y9.7%
PM growth 5Y26.09%
GM growth 3Y1.53%
GM growth 5Y6.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TGLS is creating value.
The number of shares outstanding for TGLS remains at a similar level compared to 1 year ago.
TGLS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TGLS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.23 indicates that TGLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of TGLS (7.23) is better than 90.24% of its industry peers.
TGLS has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
TGLS has a better Debt to FCF ratio (1.30) than 87.80% of its industry peers.
TGLS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, TGLS is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 7.23 |
ROIC/WACC2.14
WACC10.03%
2.3 Liquidity
TGLS has a Current Ratio of 1.93. This is a normal value and indicates that TGLS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TGLS (1.93) is comparable to the rest of the industry.
A Quick Ratio of 1.46 indicates that TGLS should not have too much problems paying its short term obligations.
The Quick ratio of TGLS (1.46) is better than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.83% over the past year.
TGLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.54% yearly.
The Revenue has grown by 11.74% in the past year. This is quite good.
TGLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.62% yearly.
EPS 1Y (TTM)9.83%
EPS 3Y28.76%
EPS 5Y39.54%
EPS Q2Q%39.39%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y21.46%
Revenue growth 5Y15.62%
Sales Q2Q%15.4%
3.2 Future
The Earnings Per Share is expected to grow by 11.26% on average over the next years. This is quite good.
Based on estimates for the next years, TGLS will show a small growth in Revenue. The Revenue will grow by 7.23% on average per year.
EPS Next Y14.85%
EPS Next 2Y14.67%
EPS Next 3Y13.63%
EPS Next 5Y11.26%
Revenue Next Year11.94%
Revenue Next 2Y11.53%
Revenue Next 3Y8.71%
Revenue Next 5Y7.23%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.79, TGLS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of TGLS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.35, TGLS is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.31 indicates a correct valuation of TGLS.
TGLS's Price/Forward Earnings is on the same level as the industry average.
TGLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 15.31 |
4.2 Price Multiples
TGLS's Enterprise Value to EBITDA ratio is in line with the industry average.
65.85% of the companies in the same industry are cheaper than TGLS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.16 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TGLS may justify a higher PE ratio.
A more expensive valuation may be justified as TGLS's earnings are expected to grow with 13.63% in the coming years.
PEG (NY)1.26
PEG (5Y)0.48
EPS Next 2Y14.67%
EPS Next 3Y13.63%
5. Dividend
5.1 Amount
TGLS has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 1.24, TGLS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, TGLS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
On average, the dividend of TGLS grows each year by 27.74%, which is quite nice.
TGLS has been paying a dividend for at least 10 years, so it has a reliable track record.
TGLS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)27.74%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TGLS pays out 12.98% of its income as dividend. This is a sustainable payout ratio.
TGLS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.98%
EPS Next 2Y14.67%
EPS Next 3Y13.63%
73.47
-1.75 (-2.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners54.49%
Inst Owner Change12.49%
Ins Owners0%
Ins Owner Change-3.42%
Market Cap3.45B
Analysts80
Price Target94.1 (28.08%)
Short Float %10.97%
Short Ratio7.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend0.42
Dividend Growth(5Y)27.74%
DP12.98%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.27%
Min EPS beat(2)0.68%
Max EPS beat(2)9.86%
EPS beat(4)4
Avg EPS beat(4)4.58%
Min EPS beat(4)0.68%
Max EPS beat(4)9.86%
EPS beat(8)6
Avg EPS beat(8)3%
EPS beat(12)10
Avg EPS beat(12)9.02%
EPS beat(16)14
Avg EPS beat(16)12.27%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)2.18%
Revenue beat(4)1
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)2.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.6%
Revenue beat(12)6
Avg Revenue beat(12)2.46%
Revenue beat(16)9
Avg Revenue beat(16)3.25%
PT rev (1m)10.26%
PT rev (3m)2.88%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-10.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.75%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 15.31 | ||
| P/S | 3.75 | ||
| P/FCF | 41.16 | ||
| P/OCF | 18.76 | ||
| P/B | 5.04 | ||
| P/tB | 5.26 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)3.91
EY5.32%
EPS(NY)4.8
Fwd EY6.53%
FCF(TTM)1.79
FCFY2.43%
OCF(TTM)3.92
OCFY5.33%
SpS19.58
BVpS14.58
TBVpS13.98
PEG (NY)1.26
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.27% | ||
| ROE | 25.36% | ||
| ROCE | 30.31% | ||
| ROIC | 21.5% | ||
| ROICexc | 26.8% | ||
| ROICexgc | 28.03% | ||
| OM | 26.67% | ||
| PM (TTM) | 18.89% | ||
| GM | 43.79% | ||
| FCFM | 9.12% |
ROA(3y)18.69%
ROA(5y)14.42%
ROE(3y)34.52%
ROE(5y)28.6%
ROIC(3y)25.8%
ROIC(5y)21.42%
ROICexc(3y)31.86%
ROICexc(5y)26.41%
ROICexgc(3y)33.63%
ROICexgc(5y)28.08%
ROCE(3y)36.38%
ROCE(5y)30.2%
ROICexcg growth 3Y2.27%
ROICexcg growth 5Y18.89%
ROICexc growth 3Y3.41%
ROICexc growth 5Y19.71%
OM growth 3Y2.69%
OM growth 5Y13.32%
PM growth 3Y9.7%
PM growth 5Y26.09%
GM growth 3Y1.53%
GM growth 5Y6.26%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 364.06% | ||
| Cap/Sales | 10.88% | ||
| Interest Coverage | 27.71 | ||
| Cash Conversion | 67.44% | ||
| Profit Quality | 48.27% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 7.23 |
F-Score5
WACC10.03%
ROIC/WACC2.14
Cap/Depr(3y)339.62%
Cap/Depr(5y)270.82%
Cap/Sales(3y)9.41%
Cap/Sales(5y)8.69%
Profit Quality(3y)45.01%
Profit Quality(5y)90.99%
High Growth Momentum
Growth
EPS 1Y (TTM)9.83%
EPS 3Y28.76%
EPS 5Y39.54%
EPS Q2Q%39.39%
EPS Next Y14.85%
EPS Next 2Y14.67%
EPS Next 3Y13.63%
EPS Next 5Y11.26%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y21.46%
Revenue growth 5Y15.62%
Sales Q2Q%15.4%
Revenue Next Year11.94%
Revenue Next 2Y11.53%
Revenue Next 3Y8.71%
Revenue Next 5Y7.23%
EBIT growth 1Y8.02%
EBIT growth 3Y24.72%
EBIT growth 5Y31.02%
EBIT Next Year38.21%
EBIT Next 3Y16.14%
EBIT Next 5Y12.92%
FCF growth 1Y4.46%
FCF growth 3Y11.4%
FCF growth 5Y164.7%
OCF growth 1Y16.52%
OCF growth 3Y13.28%
OCF growth 5Y46.01%