Talgo S.A. (TLGO) AI Stock Analysis

• Market Cap: €369.51M
• Dividend Yield: N/A
• Average Volume (3M): 188.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -16.41%
• EPS Growth: -952.46%
• Country: ES
• Employees: 3,420
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): N/A
• Shares Outstanding: 123,860,214
• 10 Day Avg. Volume: 156,985
• 30 Day Avg. Volume: 188,467
• PEG Ratio: <0.01
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -2.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: €3.00 ▼(-4.46% Downside)

Talgo S.A.'s overall stock score is primarily impacted by its financial difficulties, including negative profitability and cash flow issues. While technical indicators show some positive momentum, the stock's valuation is concerning due to a negative P/E ratio. The absence of debt is a positive aspect, but strategic improvements are necessary to enhance financial health.

Positive Factors

Debt-Free Position

Being debt-free provides Talgo with financial flexibility and reduces interest burden, allowing it to invest in growth opportunities and withstand economic downturns.

Strategic Partnerships

These partnerships help secure long-term contracts and expand market reach, providing a stable revenue stream and enhancing competitive positioning in the rail industry.

Lightweight Train Technology

Innovative lightweight technology reduces operational costs and aligns with global sustainability trends, potentially increasing demand for Talgo's products.

Negative Factors

Declining Profitability

Negative profitability indicates operational inefficiencies and challenges in cost management, which can hinder long-term financial health and investment capacity.

Negative Cash Flow

Negative cash flow highlights liquidity issues and the inability to generate sufficient cash from operations, potentially limiting future growth and investment.

Revenue Decline

A significant revenue decline suggests challenges in market demand or competitive pressures, which could impact Talgo's ability to maintain its market position.

Talgo S.A. Business Overview & Revenue Model

Company Description

Talgo, S.A. designs, manufactures, and maintains railway rolling stock and auxiliary machinery worldwide. It offers very high speed, high speed, and intercity trains and locomotives. The company also provides maintenance equipment, including underfloor wheel lathes for maintenance of high speed and long-distance trains; and shunting cars, as well as measuring equipment to railway operators. In addition, it offers maintenance and rolling stock refurbishment services. The company was formerly known as Pegaso Rail International, S.A. The company was founded in 1942 and is headquartered in Madrid, Spain.

How the Company Makes Money

Talgo generates revenue through multiple streams, primarily from the sale of its trainsets and related services. The company enters into contracts with governments and railway operators for the supply of trains, which typically include design, manufacturing, and delivery. Additionally, Talgo earns income from maintenance and after-sales services, ensuring the longevity and efficiency of its trains. The company has strategic partnerships with various rail operators and governmental agencies, allowing it to secure long-term contracts and expand its market reach. Furthermore, Talgo may benefit from research and development grants and subsidies aimed at promoting sustainable transportation solutions.

Talgo S.A. Financial Statement Overview

Summary

Talgo S.A. is facing significant financial challenges, with declining profitability, negative operational results, and cash flow issues. Despite being debt-free, the negative net income and cash flow positions require strategic adjustments.

Income Statement

Talgo S.A. has experienced revenue growth of 2.64% from 2023 to 2024; however, the company is facing significant profitability challenges. The gross profit margin has declined, and the company recorded a negative net profit margin of -15.85% in 2024 due to substantial losses. EBIT and EBITDA margins are also negative, indicating operational inefficiencies.

Balance Sheet

The company's balance sheet shows a debt-free position in 2024, which is a positive aspect. However, the return on equity has turned negative due to the net loss, and the equity ratio has decreased, reflecting lower equity relative to total assets, which could pose future financial stability concerns.

Cash Flow

Talgo's cash flow statement reveals negative operating and free cash flows, indicating cash flow challenges. The operating cash flow to net income ratio is negative, highlighting issues in converting income into cash flow. Additionally, free cash flow deteriorated further in 2024, exacerbating liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	891.03M	669.22M	652.00M	469.12M	555.41M	487.10M
Gross Profit	200.05M	125.34M	155.32M	262.01M	88.38M	49.91M
EBITDA	-183.71M	-58.66M	77.32M	44.67M	62.44M	10.93M
Net Income	-277.69M	-106.07M	13.69M	1.44M	27.56M	-17.45M
Balance Sheet
Total Assets	1.32B	1.27B	1.12B	1.13B	1.03B	902.87M
Cash, Cash Equivalents and Short-Term Investments	117.06M	93.40M	156.08M	239.38M	252.98M	238.35M
Total Debt	583.87M	538.77M	453.96M	375.58M	318.01M	313.00M
Total Liabilities	1.20B	1.09B	827.48M	849.69M	740.59M	645.20M
Stockholders Equity	107.62M	170.61M	278.00M	281.18M	287.00M	257.67M
Cash Flow
Free Cash Flow	-116.69M	-159.37M	-142.22M	-47.64M	4.50M	-110.26M
Operating Cash Flow	-99.28M	-110.80M	-115.75M	-25.26M	29.65M	-85.56M
Investing Cash Flow	-70.78M	-48.57M	-18.60M	-22.38M	-11.18M	-24.70M
Financing Cash Flow	174.82M	97.55M	50.71M	33.22M	6.21M	13.01M

Talgo S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:TLGO, the sentiment is Positive. The current price of 3.14 is above the 20-day moving average (MA) of 2.91, above the 50-day MA of 2.84, and above the 200-day MA of 2.95, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 77.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:TLGO.

Talgo S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAF	76 Outperform	€2.06B	16.55	14.10%	2.28%	6.84%	16.03%
FCC	70 Outperform	€5.25B	22.16	5.28%	4.49%	5.00%	-64.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENO	60 Neutral	€2.09B	-22.50	-6.79%	13.00%	11.61%	-212.68%
GEST	58 Neutral	€1.81B	10.82	7.70%	3.35%	-4.69%	-8.38%
TLGO	48 Neutral	€369.51M	-2.05	-92.71%	―	-16.41%	-952.46%
OHLA	48 Neutral	€511.97M	-13.55	-6.41%	―	1.39%	72.34%