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TGLS

Tecnoglass NYSE:TGLS Stock Report

Last Price

US$20.99

Market Cap

US$1.0b

7D

8.8%

1Y

-6.7%

Updated

30 Sep, 2022

Data

Company Financials +
TGLS fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance6/6
Financial Health6/6
Dividends2/6

TGLS Stock Overview

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally.

Tecnoglass Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tecnoglass
Historical stock prices
Current Share PriceUS$20.99
52 Week HighUS$34.90
52 Week LowUS$16.05
Beta1.87
1 Month Change-3.63%
3 Month Change19.60%
1 Year Change-6.67%
3 Year Change175.82%
5 Year Change198.15%
Change since IPO122.59%

Recent News & Updates

Aug 15

Tecnoglass: Strong Growth Continues Despite Inflationary Headwinds

Despite inflationary headwinds and market disruption in the first half of 2022, Tecnoglass reported record growth in Q2. Due to low-cost, vertically integrated, high quality glass products, Tecnoglass demand continues to ramp up and margins are increasing. The Tecnoglass full-year outlook for 2022 was increased to adjusted EBITDA between $208M to $220M and revenues of $620M to $640M. “Those who live in glass houses should not throw stones.” Back in February of this year I penned an article on Tecnoglass Inc. (TGLS), a Colombia-based, vertically integrated glass company that was the subject of a short report by Hindenburg research in December 2021. At the time, the impact of the short report was a -40% haircut that dropped the share price from a high of $33.70 to below $20 immediately after the report was published. At the time of my article, the stock was trading for right around $20 and was due to report Q1 earnings. I rated the stock a Strong Buy at the time due to ramping construction activity in Florida as well as other parts of the southeastern U.S. Since then, the company reported Q421 results on March 3, beating estimates for both EPS and revenues with YOY adjusted EBITDA growing 65.7%. The forecast at the time was for continued growth of 20% or more in 2022: FY22 Outlook: Revenues to grow to a range of $575 million to $600 million vs consensus of $558.92M and for adjusted EBITDA to increase to a range of $170 million to $190 million. This implies adjusted EBITDA growth of approximately 20% at the midpoint. That report was followed by another positive report of Q1 results on May 4, with non-GAAP EPS of $0.53, beating estimates by $0.07, and revenue of $134.5M representing 20% YOY growth. The stock price rallied after the March report reaching a high of $28.51 on March 29 before retreating to a near-term low of $16.73 in June as the broader market declined. TGLS 1-year chart (Seeking Alpha) The most recent Q222 earnings report on August 4 was better than the previous two and showed that growth is accelerating even faster than earlier predicted. Record total revenues of $169.1M represents a YOY increase of 39%, while adjusted net income also set a record at $33M or $0.69 per diluted share. The revised outlook for FY 2022 is now increased even more: Increases Full Year 2022 Growth Outlook to Adjusted EBITDA of $208 Million to $220 Million on Total Revenues of $620 Million to $640 Million. The prospects for continued growth look encouraging as the vertically integrated business model and continued ramping up of construction activities continues with a record backlog of construction projects into 2023. The company’s Chief Operating Officer, Christian Daes, summed up the results in the earnings call: “Our activity in key U.S. regions remains strong for single-family and multifamily residential projects, as well as commercial projects, evidenced by record levels of invoicing during the month of July. Ongoing market share gains helped us produce revenue growth of 86% year-over-year in our single-family residential business, with projects in the historically resilient remodel and renovation end market representing approximately 65% of that business. The commercial side of our business has continued to experience sequential growth in each month this year, with the second quarter revenues up 15% compared to the prior year quarter. A full summary of the highlights from the company’s press release on Q2 earnings hits several other points worth noting: - Record Total Revenues of $169.1 Million Up 39% Year-Over-Year, All through Organic Growth - - Record Single-Family Residential Revenues Increased 86% Year-Over-Year, Representing 45% of Total Revenues – - Growth Capex Investments on Track to End Year with Installed Production Capacity of Over $800 Million - - Gross Margin of 43.5%, Up 310 Basis Points Year-Over-Year - - Record Net Income of $33.4 Million and $0.70 Per Diluted Share - - Record Adjusted Net Income of $33.0 Million and $0.69 Per Diluted Share - - Adjusted EBITDA Up 51.7% Year-Over-Year to a Record $54.6 Million, or 32.3% of Total Revenues - - Cash Flow from Operations of $35.9 Million - - Backlog Expanded 19.5% Year-Over-Year to a Record $668 Million – - Board Increases Quarterly Dividend by 15% - Global Leader in Architectural Glass As construction of high-rise towers in Florida and other sunbelt states continues to ramp up, Tecnoglass is establishing themselves as a global leader in the architectural glass products that are increasingly used. A brief review of construction activities in Florida includes references to a 34-story tower in Fort Lauderdale, and $50 million in infrastructure projects in Miami, as just a few examples of this trend. Global Leader in Architectural Glass (August 2022 investor presentation) The company is effectively positioned to further penetrate the U.S. market with an already significant presence in Florida, a developing presence in Texas, an emerging presence in the southeast, the Midwest/northeast, and in California. U.S. revenues make up the majority of sales, with 95% of total revenues coming from the U.S. and 96% of total backlog as of Q222. Established reputations with dealers and positive acceptance of their products contributes to the continued growth trajectory. The vast U.S. market opportunity is estimated at $32 billion, and TGLS is in the top 5 of glass manufacturers. ✓ Our track record of successfully delivering high profile projects and maintaining consistent lead times has earned us an increasing number of opportunities across the U.S., demonstrated by backlog expanding 19.5% YoY to a record $668 million. In addition, the company’s low manufacturing costs, strategic location with favorable export shipping rates, and vertically integrated business model contribute to the successful recipe that TGLS is enjoying. TGLS Competitive Advantages (August 2022 investor presentation) Financial Performance Since 2018, gross margins have been improving year-over-year from 31.5% in 2019 to 42.8% in the last twelve months as of June 30, 2022. Some of that step up has been due to automation efficiencies as well as a shift in business strategy to penetrate the single-family residential market. From the company’s August 10, 2022, investor presentation they had this to say about improved margins and cash flows: Stronger profitability and significant improvement in working capital metrics driving record cash flow generation and lowest net leverage (Net Debt / LTM Adjusted EBITDA) levels in Company history.

Shareholder Returns

TGLSUS BuildingUS Market
7D8.8%-0.6%-2.5%
1Y-6.7%-24.3%-23.2%

Return vs Industry: TGLS exceeded the US Building industry which returned -23.3% over the past year.

Return vs Market: TGLS exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is TGLS's price volatile compared to industry and market?
TGLS volatility
TGLS Average Weekly Movement6.2%
Building Industry Average Movement5.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: TGLS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TGLS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19846,908José Manuel Daeshttps://www.tecnoglass.com

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products.

Tecnoglass Inc. Fundamentals Summary

How do Tecnoglass's earnings and revenue compare to its market cap?
TGLS fundamental statistics
Market CapUS$1.00b
Earnings (TTM)US$94.41m
Revenue (TTM)US$567.15m

10.6x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TGLS income statement (TTM)
RevenueUS$567.15m
Cost of RevenueUS$325.04m
Gross ProfitUS$242.11m
Other ExpensesUS$147.70m
EarningsUS$94.41m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.98
Gross Margin42.69%
Net Profit Margin16.65%
Debt/Equity Ratio64.3%

How did TGLS perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

11%

Payout Ratio