Tecnoglass Holdings Inc. (TGLS) stock analysis

P/E above its 5-year median

Tecnoglass's P/E of 20.8 is above its own 5-year median of 13.6.

P/E below the industry

Tecnoglass's P/E of 20.8 is below the Materials median of 21.3.

EV/EBITDA above its 5-year median

Tecnoglass's EV/EBITDA of 11.0 is above its 5-year median of 8.3.

P/B above the industry

Tecnoglass's price-to-book of 2.50 is above the Materials median of 2.33.

Trading above fair value

The share price of $45.87 is above our fair value estimate of $40.20.

Margin of safety under 20%

The price is 14.1% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 11.1% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 1.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -45.0% over the last twelve months, against a 5-year average of 46.2% a year.

Growing faster than the industry

Revenue grew 12.5% over the last twelve months; the Materials median is 2.3%.

Guidance lowered

Tecnoglass lowered its full year 2026 Adjusted EBITDA outlook on Nov 5, 2026.

Gross margin slipping

Gross margin was 37.3% over the last twelve months, against 43.9% a year earlier.

Return on equity under 15%

Return on equity was 12.6% over the last twelve months and averaged 34.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Tecnoglass's return on equity of 12.6% is above the Materials median of 5.1%.

Earnings grew over 5 years

Net income grew 46.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.0% over the last twelve months, against a 5-year average of 18.3%.

Net margin above the industry

Tecnoglass's net margin of 9.0% is above the Materials median of 2.8%.

Low debt

Debt is 36.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 108% five years ago to 36.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 21.7% of total debt.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.90 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.72; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Tecnoglass paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Tecnoglass yields 1.0%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 27.2% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.