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Should you consider TECNOGLASS INC (NYSE:TGLS) for quality investing?

By Mill Chart

Last update: Apr 5, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TECNOGLASS INC (NYSE:TGLS) is suited for quality investing. Investors should of course do their own research, but we spotted TECNOGLASS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of TECNOGLASS INC

  • TECNOGLASS INC has shown strong performance in revenue growth over the past 5 years, with a 17.57% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 31.56%, TECNOGLASS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a Debt/Free Cash Flow Ratio of 2.79, TECNOGLASS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • TECNOGLASS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 80.28%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • The 5-year EBIT growth of TECNOGLASS INC has been remarkable, with 40.65% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • TECNOGLASS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to TGLS. TGLS was compared to 45 industry peers in the Building Products industry. TGLS has an excellent profitability rating, but there are some minor concerns on its financial health. TGLS has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of TGLS contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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