---

Note: I discovered Tecnoglass around July 2023 when the company was trading at approximately $30 to $35. While the company caught my attention due to the ‘simplicity’ of its business model and its sudden growth from 2021 to 2024, I initially didn’t pay much attention because of its performance trend from 2014 to 2020.

I continued tracking the company and saw a continue increase until 2025, which is when I finally decided to write this full review, and invest on this company.

Introduction

Tecnoglass, Inc. is a leading manufacturer and distributor of architectural glass, windows, and associated aluminum products for both commercial and residential construction markets. The company is headquartered in Barranquilla, Colombia, and operates internationally, with a strong presence in the United States, its largest market.

It markets and sells its products under the Tecnoglass, ES Windows, and Alutions brands through internal and independent sales representatives, as well as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

Key Products and Services:

1. Architectural Glass

• Laminated Glass: Combines multiple glass layers with an interlayer for safety and strength.
• Tempered Glass: Heat-treated for durability and thermal resistance.
• Insulating Glass: Enhances energy efficiency by reducing heat transfer.
  • Low-Emissivity (Low-E) Glass: Coated to reflect heat while allowing light.

2. Windows and Aluminum Products:

• Windows and Door Systems: Designed for aesthetic appeal, energy efficiency, and impact resistance.
• Curtain Walls: Exterior cladding systems for large-scale commercial buildings.
• Storefront Systems: Glass systems for retail and commercial applications.

3. Specialty Products:

• Impact-Resistant Glass: Built to withstand severe weather conditions and meet hurricane safety standards.
• Custom Solutions: Tailored products for unique architectural designs and client needs.

Tecnoglass primarily serves the construction sector, catering to High-rise commercial buildings, Residential properties, including luxury homes and Infrastructure projects.

Competitive Advantages:

1. Vertical Integration: Tecnoglass owns and operates its manufacturing facilities, ensuring strict quality control, cost efficiency, and faster turnaround times.

2. U.S. Market Leadership: The company has a strong distribution network in the U.S., with significant market share in the Southeastern and Southwestern regions.

3. Innovation and Sustainability: Tecnoglass emphasizes energy-efficient and environmentally friendly products, aligning with growing demand for sustainable construction materials.

The main competitors of Tecnoglass are PGT Innovations, Inc. (PGTI), Apogee Enterprises, Inc, (APOG), and Cardinal Glass Industries (which is a private company) and these companies are part of the Industrial sector.

Market Growth

In the United States, the architectural glass market is expected to grow at a higher CAGR of 4.9%, from USD 572 million in 2023 to USD 802 million by 2030, supported by strong renovation activity and premium demand for low-E and impact-resistant products.

Other research firms show similar yet slightly more conservative trajectories. MarketResearch.com projects global architectural glass to grow from USD 219 billion in 2023 to USD 258 billion by 2030, corresponding to a ~2.8% CAGR.
Meanwhile, when the broader flat glass market (including automotive and solar applications) is considered, Grand View Research forecasts USD 311 billion in 2024 rising to USD 405 billion by 2030, a 4.6% CAGR, confirming the medium-term resilience of the category.

Key Risks and short-term headwinds

While the long-term outlook remains favorable, several short-term risks could weigh on demand.
The macroeconomic environment — especially high mortgage rates in the U.S. — has already begun to slow home improvement spending. A recent Financial Times article noted that homeowners are postponing major upgrades due to financing costs.

The Fenestration & Glazing Industry Alliance (FGIA) reported in 2024 that new-construction window demand grew ~1%, but replacement window demand fell ~5%, with another mild decline expected in 2025 before a rebound in 2026–2027 (FGIA Industry Review 2024).

Beyond macro factors, input-cost volatility (aluminum, PVC, logistics) and trade tariffs represent recurring threats to margins. Competitive pressure is also intensifying, as large incumbents (JELD-WEN, Andersen, Pella) streamline operations and pursue share in vinyl and energy-efficient categories.

---

Q2 2025, Consistency and Execution at record levels

Tecnoglass delivered another record quarter in Q2 2025, proving once again that operational excellence and disciplined capital allocation can outperform cyclical headwinds in construction.

Revenue hit an all-time high of $255.5M, up 16.3% YoY, with Adjusted EBITDA of $79.8M (+24.5% YoY) and margins expanding 200 bps to 31.2%. Gross margin improved to 44.7%, benefiting from stronger retail pricing, operational leverage, and a favorable FX tailwind as the Colombian peso weakened 7% versus the USD.

The company’s backlog reached a record $1.2B (+17% YoY) — 97% based in the U.S. — ensuring visibility well into 2026. The book-to-build ratio of 1.2x underscores sustained demand across multifamily and commercial projects, especially in high-end condos and luxury lodging where interest-rate sensitivity is lower.

On the residential side, single-family revenues grew 14.5% YoY to $109.6M, driven by expanding dealership networks, new showrooms, and strong traction in vinyl windows — a move that more than doubles Tecnoglass’ addressable market. Orders rose 29% sequentially, marking the second-highest quarter on record and reinforcing growth momentum into the second half of the year.

From a financial standpoint, Tecnoglass remains exceptionally strong:

• Net cash position: $28.7M
• Liquidity: ~$310M
• Net debt/EBITDA: –0.09x (no leverage)
• ROE (3yr avg): 39% vs 16% peers
• ROIC (3yr avg): 27% vs 10% peers

The company’s vertically integrated model — from glass manufacturing to installation — continues to be its structural moat, enabling industry-leading lead times (5–6 weeks) and resilient margins despite aluminum tariffs and labor inflation.

For 2025, management expects revenue between $980M–$1.02B and Adjusted EBITDA of $310M–$325M, with gross margins in the low-to-high 40% range. Even under conservative assumptions, Tecnoglass is positioned to sustain superior returns on capital and compound value over time.

Assessing the Upsides and Downsides of Tecnoglass: My Perspective

Tecnoglass has structurally upgraded its profitability profile. While 2021–2022 benefited from an exceptional demand cycle, the company’s normalized returns (25–30% ROE, ~28% ROC) suggest it retained most of those efficiency gains. This is consistent with a business that achieved scale, pricing power, and cost control — all signals of a growing economic moat.

The margin expansion is structural, not cyclical. It results from (1) vertical integration, (2) efficiency in SG&A scaling, (3) dominance in U.S. distribution, and (4) product mix evolution (more premium vinyl and impact-resistant products).
The slight decline in 2023–2024 simply reflects normalization from extraordinary highs, not deterioration in fundamentals.

The sustained ROE >25% and EBITDA margins near 30% suggest a competitive advantage that goes beyond a short-term cycle.
The moat appears to rest on three pillars:

1. Vertical Integration: Tecnoglass controls the entire value chain — from glass manufacturing to aluminum framing and installation — ensuring cost control, faster delivery, and superior margins.
2. Geographic Focus: 95% of revenue now comes from the U.S., particularly Florida and the Sun Belt, where code requirements (impact resistance, hurricane glazing) favor high-spec products.
3. Operational Efficiency: The company’s production hub in Barranquilla offers structural cost advantages (labor, logistics, tax incentives) versus U.S. peers like Andersen or JELD-WEN.

These factors explain why margins remain high even as demand normalizes. In essence, Tecnoglass behaves less like a commodity manufacturer and more like a specialized premium supplier with pricing power and economies of scale.

Inefficiencies between the price and its capacity to generate value, EPS has been growing since 2020, and the company is still reporting high earnings per share, but the price tanked in Jul 2023.

---

Leadership Analysis

Tecnoglass was founded in 1984 in Barranquilla, Colombia, by the brothers José M. Daes and Christian T. Daes, and it was a family-owned business from the start. The company made its debut on the U.S. stock exchange through a business combination in 2013 and later moved its listing to the NYSE. However, the Daes family still holds a significant stake, primarily through Energy Holding Corporation. This entity owns roughly 43% of the outstanding shares (according to recent filings), which is a positive sign. Not only does it show that the founders, who serve as CEO and COO, maintain a key role, but the family retaining a large share conveys a strong alignment between their interests and the company’s long-term success.

The main reason why the owners of Energy Holding Corp are also the owners of Tecnoglass is because Energy Holding Corporation (EHC) is the entity through which the founding family of Tecnoglass, brothers José M. Daes and Christian T. Daes, maintain their majority stake in the publicly traded company.

Essentially, it is not that Energy Holding Corp owns Tecnoglass in a traditional “energy holding” manner, but rather that:

1.- José M. Daes (CEO and Director) and Christian T. Daes (COO and Director) are the founders of Tecnoglass.

2.- They and their family members are the indirect owners of Energy Holding Corporation (EHC).

3.- EHC is, in turn, the largest shareholder of Tecnoglass Inc., a company listed on the stock exchange (NASDAQ and/or NYSE, historically).

The ownership structure through Energy Holding Corporation generally serves a strategy of:

By consolidating their shareholding through a single entity (EHC), the Daes family can maintain significant voting control over the decisions of the board of directors and the strategic direction of Tecnoglass, even though the company is publicly traded and has other institutional and minority shareholders. This allows them to drive their long-term vision for the company.

Capital and Liquidity Management:

Company Financing: Initially, this structure enabled the creation and growth of the company.

Secondary Sales: Energy Holding Corp has made secondary offerings of shares (block sales) in the past. This is a way for the founding owners to obtain liquidity (cash) from their investment without Tecnoglass itself issuing new shares and diluting all other shareholders. They are simply selling a portion of their consolidated stake to the market.

We have not identified unexpected movements or aggressive sales from the Executive team or board of Directors.

Financials

Income Statement

Accordin to the company: During the third quarter, the Company returned capital to shareholders through an aggregate of $30.0 million in share repurchases and $7.0 million in cash dividends.

In November 2025, the Company’s Board of Directors authorized the expansion of the Company’s share repurchase authorization to $150.0 million to execute during opportunistic times.

Management will have discretion in the repurchase of common shares, including the timing and amount to be repurchased. Following the expansion, the Company had approximately $96.5 million remaining under its existing share repurchase program.

Q3 2025 Results heavily impacts the stock price.

Following the Q3 results, I summarised the biggest insights in the following bullet points:

• Revenue of US$260.5 million, up 9.3% YoY. investors.tecnoglass.com
• Net income of US$47.2 million, or US$1.01 per diluted share. investors.tecnoglass.com+1
• Adjusted EBITDA of US$79.1 million (≈ 30.4% of revenues). investors.tecnoglass.com
• Record backlog of US$1.3 billion, up ~21.4% YoY. investors.tecnoglass.com
• Strong liquidity: ~US$550 million total liquidity including cash (~US$124 m) + credit facility (~US$425 m) with debt of US$111.9 m. investors.tecnoglass.com
• Expansion of buy-back: US$30 m share repurchase in Q3 + dividend US$7 m; and share repurchase program expanded to US$150 m. investors.tecnoglass.com
• Guidance updated: Full-Year 2025 revenue range revised to US$970-990 m and Adjusted EBITDA to US$294-304 m. investors.tecnoglass.com

On the surface, many things are going well: revenue growth, backlog growth, strong liquidity, shareholder capital returns, and improved strategic positioning. These are positive signals typically associated with a high-quality, possibly compounder business.

But, despite the strong headline, there are a number of caveats in the release and surrounding commentary that likely dampened investor enthusiasm:

Margin pressure

• Gross margin fell to 42.7% in Q3 from 45.8% in the prior year quarter. investors.tecnoglass.com
• Adjusted EBITDA margin dropped to ~30.4% from ~34.2% the year ago quarter. investors.tecnoglass.com
• Management explicitly flags “higher raw material cost related to all-time high premiums for U.S. aluminium, and a revaluation of the Colombian Peso” as drivers. investors.tecnoglass.com
  Interpretation: While growth is positive, margins are under pressure. For a business whose investment case hinged partly on margin expansion, any margin erosion triggers concern.

Single-family residential growth moderating

• Single-family residential revenues grew only 3.4% YoY compared to the higher growth in multi-family/commercial (14.3%). investors.tecnoglass.com
  Interpretation: Since the single-family market is more sensitive to interest-rates, housing cycles, and consumer sentiment, the low single-family growth suggests some vulnerability.

Currency & mix headwinds

• FX headwinds from the Colombian peso revaluation. investors.tecnoglass.com
• Unfavourable revenue mix: higher installation content (which tends to carry lower margins than product sales) is cited. investors.tecnoglass.com
  Interpretation: These factors imply that underlying margins might be under pressure beyond just cost inflation — mix and FX are structural headwinds.

Guidance seems conservative / lower than previously expected

• While management raised full-year guidance, the ranges (US$970-990 m revenue, US$294-304 m EBITDA) reflect only ~10% revenue growth and ~8% EBITDA growth at midpoint. investors.tecnoglass.com
• Some commentary from market watchers noted that the company “missed consensus expectations” despite the growth. Finimize+1
  Interpretation: Investors often like not just growth, but upside surprise and margin improvement. When the guidance is conservative and margins contract, sentiment can turn even if absolute results are good.

Valuation reset / analyst target cuts

• Analysts have lowered price targets (e.g., DA Davidson cut TGLS target from ~US$95 to ~US$80. GuruFocus
• The stock hit new 52-week low despite results. MarketBeat
  Interpretation: Analyst target reductions and technical breakdowns often trigger negative momentum. Even a good business can suffer share price weakness if growth/margin expectations are lowered.

Why has the share price dropped to below ~$50? (Putting it all together)

Bringing the above points into a cohesive narrative:

• Even though growth is positive, the margin contraction and cost/mix/FX headwinds suggest that the “best-case” scenario (continuous margin expansion) may be under threat. For a stock that previously traded on high return metrics and margin improvement, this is a material shift.
• The single‐family residential slowdown, in a business where that segment is meaningful, introduces cyclical risk — fear of interest‐rate pressure, housing market softness, and renovation hesitancy.
• The guidance, while positive, is not aggressive; investors may have been expecting more upside or margin improvement rather than stability. The fact that it reflects only ~8% EBITDA growth (in a business that previously delivered much higher growth) may disappoint.
• Analysts and the market are re-pricing the risk: margin pressures + cyclical exposure + cost inflation = higher risk premium. So the valuation multiple is compressing.
• Technical and sentiment factors: hitting a 52-week low often spurs investor caution; when analysts cut targets, this can become a self-reinforcing negative spiral (sell side lowers target → investors sell → share price falls → more negative sentiment).
• The business remains fundamentally strong, but the “promise” of continued margin expansion and high growth might be being recalibrated; investors sometimes rotate out before the new metrics embed.

Valuation

The analysis shows that the current share price of TGLS is $46.55, while the calculated intrinsic value is approximately $78.71, with a 30% a margin of safety, it will recommend a purchase price at $55.10.

Based on the analysis performed, I consider TGLS to be undervalued in terms of its intrinsic value, given that the current share price is below its calculated value. scena

However, it is essential to note that growth projections are optimistic and may not materialize. The company shows a solid return on capital and good growth potential, but investors should be cautious about expectations.

---

BRKR or Bruker Corporation is a leading manufacturer of scientific instruments that are used by customers in life sciences, pharmaceuticals, applied markets, and academia. The company also provides diagnostic tools for microbiology and pathology labs.

Introduction

Bruker Corporation’s offerings can be categorized into the following segments:

1. Bruker BioSpin Group: This segment offers products like nuclear magnetic resonance (NMR) spectrometers, magnetic resonance imaging (MRI) systems, and preclinical MRI research tools. They also provide solutions for EPR (electron paramagnetic resonance) applications.
2. Bruker CALID Group: The CALID group offers a wide range of products including mass spectrometry tools, microbiology and diagnostic tools, infrared spectroscopy systems, and gas chromatography systems.
3. Bruker Nano Group: This segment offers advanced materials research tools, nanoanalysis solutions, and microscopy, all of which are used in the semiconductor and other industrial markets.
4. After-Sales Service: Apart from the primary products, Bruker also offers after-sales services including training, preventive maintenance, and other support services.

Their main lines of business include the design, manufacture, and distribution of high-performance scientific instruments and analytical and diagnostic solutions. Bruker operates in two segments: Bruker Scientific Instruments (BSI) and Bruker Energy & Supercon Technologies (BEST).

BSI encompasses the Bruker BioSpin Group, the Bruker CALID Group (which includes the Bruker Chemical & Applied Markets division, the Bruker Detection division, and the Bruker Daltonics division), and the Bruker Nano Group. These groups focus on advanced analytical solutions for the life sciences and physical sciences research, pharmaceuticals, biotechnology, and industrial markets.

The BEST segment designs, manufactures, and distributes superconducting materials, primarily metallic low temperature superconductors, for use in magnetic resonance imaging, nuclear magnetic resonance, fusion energy research, and other applications.

Bruker Corporation operates globally, with customers in over 60 countries. They have major operations in Europe and North America, with presence in Asia, Australia, and the Middle East. They have numerous sales and service offices around the world, including in the United States, Germany, United Kingdom, France, Japan, China, South Korea, India, and Australia. Their corporate headquarters is located in Billerica, Massachusetts, USA.

How does the company make money?
Bruker Corporation generates revenue through the following streams:

1. Sale of Scientific Instruments: Bruker designs, manufactures, and distributes a broad range of proprietary life science and materials research systems and associated products. Their instruments are sold to customers in the pharmaceutical, biotechnology, and molecular diagnostic industries as well as to academic research institutions.
2. Aftermarket Sales and Services: After the initial sale of an instrument, Bruker continues to generate revenue through the sale of consumables, accessories, software, and services related to their products. This includes maintenance contracts, repair services, training, and consulting.
3. Collaborations and Partnerships: The company also enters into strategic partnerships and collaborations with other companies and research institutions. These collaborations may generate revenue through licensing fees, milestone payments, and royalties.

---

Market Research and Forecast

The global Analytical Instrumentation market is projected to grow to USD 76.87 Billion, and only in the US, it has been been growing since 2020, especially in North America, Europe, and Asia Pacific.

Regionally, North America commands the largest share—between 35% and 47% of global revenue in 2024. The U.S. market alone generated around USD 23.4 billion in 2024 and is expected to grow at a 5.5% CAGR to USD 37.7 billion by 2033. Meanwhile, Asia-Pacific, with a 2024 base of approximately USD 11.2 billion, is the fastest-growing region, with forecasts projecting a 7.2% CAGR through 2033 (reaching USD 20.6 billion)

Several market reports estimate a CAGR for the global scientific instrument market ranging from 4.7% to 11.5% until 2030, depending on the specific segment (e.g., process spectroscopy).

Bruker Corporation (BRKR) Outlook

Bruker is well-positioned to benefit from this sector growth, although it faces its own challenges:

• Growth Projections: Analysts anticipate that Bruker Corporation will have annual revenue growth exceeding 3% and double-digit EPS growth in the coming years.
• Market Position: The company benefits from its diversified product portfolio and strategic acquisitions, which allow it to capitalize on opportunities in high-growth markets such as proteomics and spatial biology.
• Risks: Despite the positive outlook, the company faces risks such as the volatility of its profit margins, dependence on R&D investment (which can be fluctuating), and strong market competition.

Bruker’s Growth vs. its Rivals
Revenue Performance: Bruker has achieved consistent revenue growth. In fiscal year 2024, it reported an organic revenue growth of 4.0%, and for the first quarter of 2025, the organic growth of its scientific instruments segment (BSI) was 5.1%.

Market Share Performance

Despite intense competition, Bruker has proven capable of gaining market share in key areas such as mass spectrometry, molecular diagnostics, and spatial biology, often through strategic acquisitions. Bruker Corporation has currently a 8% in the Laboratory Analytical Instruments.

---

Stock Shares Decreases during H1 by >50%

Who hasn’t had a rough day? Well, in this case, it’s more like a rocky start to the year. But let’s see just how ‘bad’ it really has been, maybe it’s not so terrible after all!

In Q1 2025, Bruker reported revenues of $801.4 million, up 11% year-over-year, driven by strong demand in biomedical research and protein analysis. GAAP EPS was $0.11, down 68.6%, but non-GAAP EPS reached $0.47, exceeding expectations. The non-GAAP operating margin was 12.7%, and operating cash flow stood at $57.1 million, reflecting solid operational efficiency. The company maintained a net cash position of $1.93 billion and continued investing in post-genomic biology and drug discovery, supporting long-term growth.

In Q2 2025, revenues slightly declined to $797.4 million, down 0.4% year-over-year, with organic revenue falling 7% and constant-currency revenue down 3.3%. GAAP EPS dropped to $0.05, while non-GAAP EPS fell to $0.32, reflecting weaker demand in the academic and U.S. biopharma markets.

From a value perspective, the long-term price action for Bruker Corporation (BRKR) has exhibited a significant concern, particularly in the period from 2020 to 2024. During this time, the BRKR Price Close dramatically outpaced its fundamentals, showing an extreme divergence from the NTM Normalized EPS trend. This suggests the stock was trading at highly inflated multiples, disconnected from its underlying earnings power and relying heavily on speculative growth assumptions. As of late 2024 and 2025, the market has executed a sharp correction, significantly eroding the share price and closing the historical valuation gap. While this deleveraging of the multiple brings the price closer to a rational level—validating the view that the stock was previously overvalued—investors must now assess whether the current valuation offers a genuine margin of safety or if further earnings deceleration has been priced in.

CEO Frank Laukien during the earnings call, described the quarter as “challenging,” attributing the underperformance to reduced demand in the U.S. academic sector, as well as in biopharma and industrial markets. Additionally, global tariffs and currency headwinds further impacted the company’s performance. To address this, Bruker launched cost-saving initiatives targeting $100–$120 million in annual reductions by 2026, as well Despite near-term challenges, continued investment in innovation positions the company for sustainable growth.

---

Leadership Team Analysis

The company was founded in 1960 by Gunther Laukien in Karlsruhe, Germany, and initially, it was a family-owned business. However, it went public in 2000. Burker’s CEO Frank Laukien, holds more than 40M shares (26.68% of shares outstanding held), which is a good sign not only because he has a key role in the company but also because the Laukien family keeps a big share of the company, and convey a solid alignment between their and the company’s interests.

Below, I’ve included a snapshot of Bruker’s Key Executives, along with their yearly compensation. None of the stakeholders makes more than 10% in revenue, which is a positive sign and it makes me feel that the leadership team is not squeezing the organization funds.

Regarding the Insiders, we have not identified unexpected movements or aggressive sales from the Executive team or board of Directors. In fact, the CEO has being buying since Q1 2025.

---

4.- Competitive advantages
As one of the top five players (alongside Agilent, Thermo Fisher, Shimadzu, Danaher), it captures a significant share of the consolidated analytical instrumentation market (approx. 65% combined share among these players, according to Mordon Inteligence).

The company’s strength lies in its expertise in mass spectrometry, material research, molecular analysis, and spectroscopy—areas aligned with the fastest-growing product categories. Innovations like timsTOF Ultra, Orbitrap, and high-resolution MS platforms place Bruker at the forefront when it comes to sensitivity, throughput, and advanced analytics, meeting laboratory needs in proteomics, complex mixtures, pharmacological pipelines, and emerging sectors like battery materials.
Customers rely heavily on vendor service support, often through tiered maintenance contracts—an area where Bruker has robust capabilities.

Regionally, Bruker is well-positioned to capitalize on growth in North America (largest market) and Asia-Pacific (fastest CAGR). Its global footprint and integration of automation, remote analytics, and AI-enable tools further differentiate it—especially as labs modernize workflows and seek predictive maintenance, cloud connectivity, and higher throughput.

The company has good short-term liquidity ratios, especially the Current Ratio (total current assets / total current liabilities) which has been above 1 since 2013 and explains its power to pay down the current liabilities. It’s important to mention that the Current Ratio has decreased over the last three years, which is a metric that should be monitored to ensure the company keeps strong.

Switching Cost

Bruker’s customers face significant switching costs due to the high capital investment and specialized nature of its instruments. For instance, the average price of a Bruker mass spectrometer is approximately $500,000, with installation and training adding an additional 20% to the total cost. This substantial investment creates a high barrier to switching, as laboratories would incur significant costs to replace or retrofit equipment from another vendor.

Additionally, Bruker’s instruments are often integrated into complex workflows that include proprietary software and consumables. This integration further increases the switching cost, as transitioning to a new system would require not only replacing the hardware but also retraining staff and adapting existing processes. Such comprehensive changes are time-consuming and costly, reinforcing customer loyalty and reducing turnover.

Training Cost

Operating Bruker’s advanced instruments requires specialized knowledge, leading to substantial training costs. Training programs are typically conducted by Bruker-certified instructors and can last several weeks, depending on the complexity of the equipment. For example, training for a high-end NMR system can cost upwards of $10,000 per participant Wikipedia. These costs are often borne by the customer, adding to the overall expense of adopting Bruker’s technology.

Moreover, Bruker frequently updates its software and hardware, necessitating ongoing training to ensure users remain proficient. This continuous need for education creates a long-term commitment for customers, as they must allocate resources for periodic training sessions to keep pace with technological advancements.

Financials

Income Statement detailed review

Bruker has demonstrated strong results over the last 10 years by keeping high and consistently growing Revenue, but also, sustainable Gross Margins which have been greater than 44% since 2015, which is a really positive indicator of a healthy business.

The increase on “Merger and Restructuring Charges” reduced significantly the Net Income on 2024, the reason behind this decrease is related to

In 2020, while the operating expenses did not raised, the Operating Income decreased by (12.8%) as a result of World Wide Health crisis. On the other hand, the Operating Margins have been double-digit over the last 10 years.

Balance Sheet

Burker has a positive liquidity ratio, if we take a look at its current assets vs. current liabilities, over the last 10 years the company has been above 1.2, which I consider a good ratio, and it tells us its capacity to generate liquidity in a short-term period. On the other hand, their Inventory and Net Income growing trend demonstrates a healthy and correlated selling cycle, where the volumes are still reasonable.

---

Valuation

Burker is currently valuated at 27% EV/EBITDA.

Instrinsic Value

Based on a simplified Discounted Cash Flow (DCF) model, Bruker Corporation (BRKR) appears to be significantly undervalued. With a current stock price of around $30, our analysis, using a 15% discount rate and our three different scenarios, estimates the intrinsic value to be approximately $32.18 per share, approximately.

The analysis indicates that BRKR is overvalued at its current price of $37.24, given that the calculated intrinsic value is approximately $27.35. This suggests that the market is valuing the company beyond its ability to generate future earnings. The multiples and ratios (P/E, P/B, ROE) should be compared with industry averages to assess whether they are in line with the company’s maturity. In this case, the margin of safety is insufficient, indicating significant risk for investors.

Based on the analysis performed, I consider BRKR to be overvalued. Despite a history of growth and a healthy ROE, the current share price does not adequately reflect its intrinsic value. Growth projections, while optimistic, present a considerable risk of not being met. Therefore, I would recommend that investors be cautious and consider waiting for a more attractive price before making a purchase.

Overall Summary

BRKR shows solid fundamentals, but the current price does not justify its intrinsic value. The company could be an option to consider in the future if the price adjusts to a more reasonable level.