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Tecnoglass, Inc.: Up 150%, Still Undervalued With Numerous Positive Catalysts

Apr. 10, 2021 5:10 AM ETTecnoglass Inc. (TGLS)11 Comments


  • The stock has performed well over the last six months, and I will provide an update to the financial performance.
  • Residential growth has outperformed expectations and signals for a long-term bullish trend.
  • While the stock has increased by 150%+ since my last article, I do not believe it is overvalued, and I will create new price expectations.
  • I remain confident in the company’s future potential as the pandemic ends and growth continues.

Glass factory, Glazier lifting that table glass
Photo by Andrzej Rostek/iStock via Getty Images

Solid 2020 Has Boosted Investor Confidence Despite Commercial Headwinds

When I released my first article on Tecnoglass, Inc. (NYSE:TGLS) in September, the company had a share price of $5.50. Now, it is nearly 150% higher to

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Comments (11)

Victor. profile picture
It is a wonderful analysis. Any idea why the margin had improved so much?
@Victor. some of the experts can add to my comments, but what I have read on all their financials over the past couple year is their expansion of their existing facilities and their implementation of new proprietary technology to reduce costs. Also, the cost of labor in Colombia is much cheaper. They have also converted old lines of credit to much lower interest rates today. They also decreased the crazy dividend they implemented several years ago. There are also cost saving synergies with their collaboration with Saint-Gobain in ability to use their facilities to manufacture and also with world leader German company Schüco, which I believe allows them to tap into Shuco's frame and architecture expertise to create unique "envelopes, windows, doors and façade systems" for their glass. So they deliver an entire residential glass system to a customer. Years ago they bought Componenti, which constructs all the metal exterior, balconies and railings on high rise condos.
Another Mountain's Rock Investing profile picture
@JD305 Exactly. Better manufacturing practices, beneficial shipping costs, and strong collabs with material providers all aid in raising margins.
Victor. profile picture
@JD305 That is wonderful insight. Thanks a lot.
Baranquilla is about 450 miles from the capital of Bogota. Tecnoglass has a positive presence in Baranquilla, they are one of the largest employers and also contribute to many social programs in the local community. The people are also different between the two cities, like comparing Manhattan big city dwellers to Miamians. Any issues in Bogota is like comparing issues in Portland, OR will affect San Francisco. TGLS will do just fine, and these recent results and continued growth should prove to potential investors that the past few quarters were not flukes and there is more growth to come.
Another Mountain's Rock Investing profile picture
@JD305 I agree but most investors may only see the country as a whole.
Do you like the earns ? Think we see 25 w the bullish chart ?
Another Mountain's Rock Investing profile picture
@tysonkube1 hey thanks for the comment. I find that short-term risks due to the situation in Colombia will keep the value down for the company, but the growth and earnings should be unaffected long-term. I think the earnings were great, and serve to bolster my bullish thesis. Therefore, I will remain positive about my price targets, but would be hesitant to raise my prices at the moment. However, I think 25 is still easily obtainable within 5 years. Let me know if you have any more questions.
Great to finally see an in depth SA article about TGLS. I've owned shares since 2015 .. close to 10K shares at this point, and I've bought along the way. Back in 2015-16 in high $13 ... and then I bought many more are the market collapsed last year doing in the $4 range. It has been great to see the company expand into the residential market. I have lived here in Miami for 40 years and owned homes where I installed PGT and CGI hurricane impact windows and doors. Anyone that lives down south knows the benefits of impact glass to for building and for their homes. I can confidently say that TGLS has produced a top quality residential product line that well off homes like in Coco Plum, Pinecrest, Coral Gables and other wealthy homes would envy to have in their homes. This is completely separate from the major monopoly which the company holds in the commercial and luxury high rise condo market. The Residential market opens up another immense revenue stream that originally was not considered by analysts. I have seen their residential product first hand and it is superior to PGT and CGI competitor product .. and they are cheaper since their production is based in Colombia.
@JD305 I have close friends that work in county approval departments for roofing and hurricane impact products ... therefore ... my comments are not of some TGLS fan .. I have knowledge of TGLS products from experts that deal with these hurricane impact materials.
Another Mountain's Rock Investing profile picture
@JD305 that is great insight, I have been UNable to see their products first hand so this helps me feel better about their products. I hope they can keep it up!
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