Why TECNOGLASS INC (NYSE:TGLS) qualifies as a quality stock.

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.

Some of the quality metrics of TGLS highlighted

• TGLS has achieved substantial revenue growth over the past 5 years, with a 15.62% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of TGLS stands at 27.5%, 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.
• With a favorable Debt/Free Cash Flow Ratio of 1.2, TGLS showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a favorable Profit Quality (5-year) ratio of 90.99%, TGLS 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.
• TGLS has demonstrated consistent growth in EBIT over the past 5 years, with a strong 31.02%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of TGLS 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.

How does the complete fundamental picture look for TGLS?

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.

Taking everything into account, TGLS scores 7 out of 10 in our fundamental rating. TGLS was compared to 41 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 decent growth rate and is not valued too expensively. These ratings could make TGLS a good candidate for quality investing.

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

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.