Tecnoglass (TGLS): Exploring Valuation After Strong Sales Growth and New Double-Digit Revenue Guidance

Tecnoglass (TGLS) just gave investors a lot to consider, reporting quarterly sales that topped last year’s numbers and sharing new revenue guidance for 2025 that points to roughly 10% growth ahead.

See our latest analysis for Tecnoglass.

This fresh outlook comes as Tecnoglass’s share price has pulled back sharply, down 17.75% in the past month and off more than 33% year-to-date, even as management continues to post solid top-line growth and forward-looking guidance. Despite the steeper recent slide, its three-year total shareholder return of 118% and eye-catching five-year return of 828% suggest that the longer-term momentum is still solidly intact.

If you’re open to finding new opportunities while Tecnoglass charts its next chapter, now’s a perfect moment to explore fast growing stocks with high insider ownership

Given the company’s growth momentum and recent share price drop, the real question for investors now is whether Tecnoglass is trading at a discount or if the market has already priced in next year’s gains.

Most Popular Narrative: 42.2% Undervalued

With Tecnoglass last closing at $52.44 and the most widely followed narrative assigning a fair value of $90.75, there is a major divide between market price and consensus valuation. The spread hints at underlying assumptions and catalysts that many investors may not be factoring into today’s share price.

Ongoing urbanization and population migration trends in the Americas, combined with Tecnoglass's aggressive geographic expansion (notably into Western U.S. states and new commercial markets), are supporting strong visible volume growth and a record project backlog. This is likely to drive sustained top-line revenue growth for 2025 and beyond.

Read the complete narrative.

Want to know the secret behind that giant fair value gap? One core projection in this narrative relies on a future profit multiple typically reserved for market favorites. The path to that bold price target is paved with optimistic financial forecasts and expansion bets. Intrigued by which numbers are powering such a high fair value? Dive into the details to see what is fueling these ambitious estimates.

Result: Fair Value of $90.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising operational costs and sudden shifts in construction demand could quickly challenge Tecnoglass’s upbeat outlook and reshape today’s valuation thesis.

Find out about the key risks to this Tecnoglass narrative.

Another View: Price-to-Earnings Shows Value, But With a Twist

Looking at Tecnoglass through the lens of its price-to-earnings ratio offers a different perspective. At 13.7x, its ratio is notably lower than both the US Building industry average (19.5x) and the peer group (27.8x), and well below the fair ratio of 22.3x. This suggests the stock could be undervalued. It also raises the question: what factors are holding it back from trading closer to its fair ratio?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Tecnoglass for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 848 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Tecnoglass Narrative

If these perspectives do not quite fit your view, you can always explore the numbers firsthand and put together your own take in just a few minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Tecnoglass.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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