TECNOGLASS INC (TGLS) Stock Fundamental Analysis
NYSE:TGLS - New York Stock Exchange, Inc. - KYG872641009 - Common Stock - Currency: USD
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. TGLS gets an excellent profitability rating and is at the same time showing great financial health properties. TGLS has a correct valuation and a medium growth rate. These ratings could make TGLS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
TGLS had positive earnings in the past year.
TGLS had a positive operating cash flow in the past year.
Each year in the past 5 years TGLS has 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.
Looking at the Return On Equity, with a value of 25.36%, TGLS is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
TGLS has a better Return On Invested Capital (21.50%) than 87.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TGLS is significantly above the industry average of 12.81%.
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
TGLS has a Profit Margin of 18.89%. This is amongst the best in the industry. TGLS outperforms 95.12% of its industry peers.
TGLS's Profit Margin has improved in the last couple of years.
TGLS's Operating Margin of 26.67% is amongst the best of the industry. TGLS outperforms 100.00% of its industry peers.
TGLS's Operating Margin has improved in the last couple of years.
The Gross Margin of TGLS (43.79%) is better than 85.37% 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
TGLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TGLS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TGLS has been increased compared to 5 years ago.
The debt/assets ratio for TGLS has been reduced compared to a year ago.
2.2 Solvency
TGLS has an Altman-Z score of 7.24. This indicates that TGLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TGLS (7.24) is better than 85.37% 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's Debt to FCF ratio of 1.30 is amongst the best of the industry. TGLS outperforms 85.37% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that TGLS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, TGLS is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 7.24 |
ROIC/WACC2.11
WACC10.18%
2.3 Liquidity
A Current Ratio of 1.93 indicates that TGLS should not have too much problems paying its short term obligations.
TGLS's Current ratio of 1.93 is in line compared to the rest of the industry. TGLS outperforms 51.22% of its industry peers.
TGLS has a Quick Ratio of 1.46. This is a normal value and indicates that TGLS is financially healthy and should not expect problems in meeting 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
TGLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.83%, which is quite good.
Measured over the past years, TGLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.54% on average per year.
Looking at the last year, TGLS shows a quite strong growth in Revenue. The Revenue has grown by 11.74% in the last year.
Measured over the past years, TGLS shows a quite strong growth in Revenue. The Revenue has been growing by 15.62% on average per year.
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
Based on estimates for the next years, TGLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.26% on average per year.
TGLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.23% yearly.
EPS Next Y16.64%
EPS Next 2Y16.42%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 18.88, the valuation of TGLS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TGLS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TGLS to the average of the S&P500 Index (27.19), we can say TGLS is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.92, which indicates a correct valuation of TGLS.
Based on the Price/Forward Earnings ratio, TGLS is valued a bit cheaper than 68.29% of the companies in the same industry.
TGLS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGLS is on the same level as its industry peers.
TGLS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TGLS is more expensive than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.36 | ||
| EV/EBITDA | 12.78 |
4.3 Compensation for Growth
TGLS's 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)1.13
PEG (5Y)0.48
EPS Next 2Y16.42%
EPS Next 3Y13.63%
5. Dividend
5.1 Amount
TGLS has a yearly dividend return of 0.78%, which is pretty low.
TGLS's Dividend Yield is a higher than the industry average which is at 1.12.
With a Dividend Yield of 0.78, TGLS pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of TGLS is nicely growing with an annual growth rate of 27.74%!
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.
The dividend of TGLS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.98%
EPS Next 2Y16.42%
EPS Next 3Y13.63%
73.83
-1.51 (-2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners54.49%
Inst Owner Change0%
Ins Owners0%
Ins Owner Change-3.42%
Market Cap3.47B
Analysts80
Price Target96.65 (30.91%)
Short Float %10.58%
Short Ratio7.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)2.71%
PT rev (3m)6.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.99%
EPS NY rev (1m)1.56%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 14.92 | ||
| P/S | 3.77 | ||
| P/FCF | 41.36 | ||
| P/OCF | 18.86 | ||
| P/B | 5.06 | ||
| P/tB | 5.28 | ||
| EV/EBITDA | 12.78 |
EPS(TTM)3.91
EY5.3%
EPS(NY)4.95
Fwd EY6.7%
FCF(TTM)1.79
FCFY2.42%
OCF(TTM)3.92
OCFY5.3%
SpS19.58
BVpS14.58
TBVpS13.98
PEG (NY)1.13
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 | 7.24 |
F-Score5
WACC10.18%
ROIC/WACC2.11
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 Y16.64%
EPS Next 2Y16.42%
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%