Exploring TECNOGLASS INC (NYSE:TGLS)s quality characteristics.

In this article we will dive into TECNOGLASS INC (NYSE:TGLS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TECNOGLASS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

• Over the past 5 years, TECNOGLASS INC has experienced impressive revenue growth, with 17.57% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of TECNOGLASS INC stands at 24.51%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• TECNOGLASS INC maintains a healthy Debt/Free Cash Flow Ratio of 1.52, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 80.28%, TECNOGLASS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• TECNOGLASS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 40.65%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of TECNOGLASS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to TGLS. TGLS was compared to 40 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making TGLS a very profitable company, without any liquidiy or solvency issues. TGLS has a correct valuation and a medium growth rate.

For an up to date full fundamental analysis you can check the fundamental report of TGLS

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.