Why should I buy Tegma shares?

Tegma is a logistics company, with great exposure to the automotive market for brand-new vehicles, a market that in turn depends on GD, national income level, credit facility for the segment, consumer confidence, rental companies and, more recently, the dynamics of ride sharing apps (Uber, 99, Cabify). Tegma’s market share in recent years has been between 28.6% and 25.6%, reflecting the stability of the contracts with the automakers that contemplate the regions where we work. The company has a large percentage of its costs linked to the number of vehicles transported, given that most of the trucks we use are outsourced, which makes margins and cash generation resilient to the major fluctuations inherent to the Brazilian automotive market.

Tegma is also responsible for the integrated logistics operation for the management of raw materials for the manufacturing of household and personal cleaning materials, glass work and parts for the production of household appliances.

The company has a capital structure that isn’t very leveraged due to the high cash generation and low investments required to support the growth of its operations.