Is TGLS Trading At A Bargain?

Here is why we think Tecnoglass (TGLS) deserves consideration as a value stock.

• Reasonable Revenue Growth: 16.9% LTM and 20.8% last 3 year average.
• Cash Generative: Nearly 5.8% free cash flow margin and 27.2% operating margin LTM.
• No Major Shocks: TGLS has avoided any large revenue collapses in the last 3 years.
• Modest Valuation: Despite encouraging fundamentals, TGLS trades at a PE multiple of 18.1
• Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, and better operating margins

As a quick background, Tecnoglass provides architectural systems including specialized glass products, curtain walls, windows, doors, interior dividers, and commercial display solutions.

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell TGLS Stock to see if Tecnoglass still has an edge that holds up under the hood.

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

Stocks Like These Can Outperform. Here Is Data

For 65 similar value stocks chosen as of mid 2024, consider the following stats for the subsequent 1 year period.

• Average peak return of 39.3% vs 14.4% for S&P, with maximum peak return of 133%
• Win rate of 60%; win rate represents % of stocks with positive return
• Average 1-year return of 14.6%, similar to S&P’s despite tariff instability

But Consider The Risk

That said, TGLS isn’t immune to big drops. It fell 72% during the Covid pandemic, 52% in the 2018 correction, and 50% amid the inflation shock. Even with solid fundamentals, these swings show how vulnerable it is when the market turns sour. Strong companies can still face steep losses when panic hits.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read TGLS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.