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Talgo S.A. (ES:TLGO)
BME:TLGO

Talgo S.A. (TLGO) AI Stock Analysis

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ES

Talgo S.A.

(BME:TLGO)

Rating:46Neutral
Price Target:
Talgo S.A. is currently struggling with financial difficulties and showing signs of operational inefficiencies and liquidity challenges. While the debt-free status is a positive aspect, the negative net income and cash flows are significant concerns. The technical analysis reflects a lack of momentum, and the valuation is not appealing due to the negative P/E ratio and lack of dividend yield.

Talgo S.A. (TLGO) vs. iShares MSCI Spain ETF (EWP)

Talgo S.A. Business Overview & Revenue Model

Company DescriptionTalgo, 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 MoneyTalgo S.A. generates revenue primarily through the sale of its rolling stock products and associated maintenance services. The company enters into contracts with government entities, railway operators, and transportation companies for the supply of high-speed trains and other rail vehicles. Additionally, Talgo offers maintenance services which provide a steady stream of income through long-term service agreements. Significant partnerships with national rail operators in countries such as Spain, the United States, and Saudi Arabia further bolster its earnings by expanding market reach and securing large-scale projects.

Talgo S.A. Financial Statement Overview

Summary
Talgo S.A. is facing significant financial challenges. The income statement shows declining profitability with a negative net profit margin and operational inefficiencies. The balance sheet is positive for being debt-free, but the negative return on equity raises concerns. Cash flow issues are evident with negative operating and free cash flows, indicating liquidity problems.
Income Statement
45
Neutral
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
55
Neutral
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
40
Negative
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
669.22M652.00M469.12M555.41M487.10M
Gross Profit
125.34M155.32M139.27M124.93M49.91M
EBIT
-71.42M58.97M26.46M41.41M3.38M
EBITDA
-58.66M77.32M44.67M62.44M13.83M
Net Income Common Stockholders
-106.07M13.69M1.44M27.56M-17.45M
Balance SheetCash, Cash Equivalents and Short-Term Investments
93.40M156.08M239.38M252.98M238.35M
Total Assets
1.27B1.12B1.13B1.03B902.87M
Total Debt
0.00453.96M375.58M318.01M306.85M
Net Debt
-93.29M298.20M136.19M65.03M78.54M
Total Liabilities
1.09B827.48M849.69M740.59M645.20M
Stockholders Equity
170.61M278.00M281.18M287.00M257.67M
Cash FlowFree Cash Flow
-159.37M-142.22M-47.64M4.50M-110.26M
Operating Cash Flow
-110.80M-115.75M-25.26M29.65M-85.56M
Investing Cash Flow
-48.57M-18.60M-22.38M-11.18M-24.70M
Financing Cash Flow
97.55M50.71M33.22M6.21M13.01M

Talgo S.A. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.17
Price Trends
50DMA
3.21
Negative
100DMA
3.43
Negative
200DMA
3.47
Negative
Market Momentum
MACD
-0.01
Positive
RSI
38.36
Neutral
STOCH
12.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:TLGO, the sentiment is Negative. The current price of 3.17 is below the 20-day moving average (MA) of 3.30, below the 50-day MA of 3.21, and below the 200-day MA of 3.47, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.36 is Neutral, neither overbought nor oversold. The STOCH value of 12.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:TLGO.

Talgo S.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.49B12.345.40%248.65%4.13%-12.33%
46
Neutral
€379.69M20.37-47.29%1.97%2.64%-867.79%
€1.67B16.1711.89%1.85%
€1.83B16.61-11.39%25.34%
€5.57B12.798.78%4.27%
€1.77B10.976.90%3.27%
€435.97M0.73-11.26%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:TLGO
Talgo S.A.
3.17
-1.25
-28.28%
GB:0RKF
Construcciones y Auxiliar de Ferrocarriles
48.72
14.89
44.01%
GB:0K97
Elecnor
21.70
7.73
55.33%
GB:0HAA
Fomento de Construcciones y Contratas
12.28
1.89
18.19%
GB:0ROM
Gestamp Automocion
3.19
0.37
13.12%
GB:0MKG
Obrascon Huarte Lain
0.32
-0.03
-8.57%

Talgo S.A. Corporate Events

Talgo S.A. Announces Board Resignation
Apr 25, 2025

Talgo S.A. announced the resignation of Mr. John Charles Pope from his role as an independent external director, following his attainment of the maximum age limit as per the company’s regulations. Mr. Pope’s departure marks the end of an eighteen-year tenure during which he made significant contributions to the company’s governance and operations.

Talgo S.A. Appoints New Independent Director to Board
Apr 23, 2025

Talgo S.A. has appointed Ms. María José Zueco Peña as an independent external director, filling a vacancy on its Board of Directors. Ms. Zueco Peña, who has a strong background in law and real estate, is expected to bring valuable expertise to the board, potentially impacting the company’s governance and strategic direction.

Talgo S.A. Releases 2024 Financial Results with Emphasis on Alternative Performance Measures
Feb 28, 2025

Talgo S.A. presented its 2024 results, highlighting the use of alternative performance measures (APMs) to provide a clearer understanding of its financial performance. These APMs, while not substitutes for IFRS standards, offer insights into the company’s operations and are aligned with international financial market practices.

Talgo S.A. Releases Annual Corporate Governance Report
Feb 28, 2025

Talgo S.A.’s annual corporate governance report reveals key details about its ownership structure as of December 31, 2024. Trilantic Capital Management GP Limited holds a significant indirect voting power of 40.03%, while Doña Ana Patricia Torrente Blasco holds 5.04% through Torrblas, S.L. This ownership distribution could influence decision-making and strategic directions, impacting stakeholders and the company’s future governance.

Talgo S.A. Upholds Directors’ Remuneration Policy for 2024
Feb 28, 2025

Talgo S.A. has maintained its directors’ remuneration policy, ensuring it aligns with market standards and promotes long-term profitability and sustainability. The policy, approved at the General Shareholders’ Meeting, includes fixed allocations, profit sharing, and variable remuneration for executive functions, aiming to balance risk and reward effectively.

Talgo S.A. to Announce 2024 Financial Results in February 2025
Feb 24, 2025

Talgo S.A. announced that it will release its financial results for the year 2024 on February 25, 2025, following the closure of the Madrid Stock Exchange. This announcement signals a forthcoming update on the company’s financial performance, potentially impacting stakeholder expectations and influencing the company’s market positioning.

Consortium to Acquire 29.7% Stake in Talgo S.A.
Feb 14, 2025

Pegaso Transportation International S.C.A. and a consortium consisting of Clerbil, S.L., Finkatze Kapitala Finkatuz, S.A., Fundación Bancaria BBK, and Fundación Bancaria Vital have reached a commercial agreement to acquire approximately 29.7% of Talgo S.A.’s share capital. The agreement includes a fixed price per share and a variable component based on future performance, pending approval and formalization, indicating a significant shift in ownership that could impact Talgo’s market dynamics.

Talgo S.A. Announces Resignation of Board Member
Feb 14, 2025

Talgo S.A. has announced the resignation of Mr. Jose María Oriol Fabra, who served as the Non-Executive Vice President of the Board of Directors, effective immediately, due to personal reasons. This change in leadership might influence the strategic direction of the company, potentially impacting its governance and decision-making processes.

PFR Denies Proposal for Talgo Stake Acquisition
Feb 12, 2025

PFR Fundusz Inwestycyjny Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych clarified that it has not made a proposal to acquire a stake in Talgo, S.A. from Pegaso Transportation International, S.C.A., addressing recent media rumors. This announcement highlights the current lack of movement in potential acquisition talks, maintaining the status quo in Talgo’s shareholder structure for the moment.

Talgo S.A. Board Restructuring Amid Pegaso Divestment
Feb 11, 2025

Talgo S.A. announced the immediate resignation of three proprietary directors due to the planned divestment of Pegaso Transportation International. The company is set to evaluate and reconfigure its Board of Directors to ensure management continuity amid these changes, aiming to keep stakeholders informed about further developments.

Potential Acquisition Proposal for Talgo, S.A.
Feb 10, 2025

PFR Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznychoferta has expressed its intention to make a proposal that could lead to a public offer to acquire all shares of Talgo, S.A. This proposal is contingent on various conditions and requires authorization from PFR’s governing bodies, leaving uncertainty about the final decision.

Potential Full Acquisition of Talgo by PFR in Consideration
Feb 10, 2025

A consortium of investors had previously expressed interest in acquiring 29.77% of Talgo’s shares. However, PFR is considering making a proposal to acquire 100% of Talgo’s shares, pending approval from Pegaso Transportation International SCA and PFR’s governing bodies. This potential acquisition could significantly impact Talgo’s market positioning, although there is no certainty that the offer will proceed.

PFR Plans Acquisition Proposal for Talgo Stake
Feb 10, 2025

PFR is planning to propose an acquisition of Pegaso Transportation International SCA’s stake in Talgo S.A., although the proposal has not yet been submitted. This move is contingent on approval from PFR’s governing bodies, indicating potential changes in Talgo’s shareholder structure.

Consortium Bids to Acquire 30% Stake in Talgo S.A.
Feb 6, 2025

A consortium comprising Clerbil, S.L., Finkatze Kapitala Finkatuz, S.A., Fundación Bancaria BBK, and Fundación Bancaria Vital has made an offer to acquire nearly 30% of Talgo S.A. shares from Trilantic Capital Investment. The offer, valuing the stake at up to 177 million euros, is contingent on regulatory approvals and is structured with a fixed and a variable price component, potentially impacting Talgo’s financial trajectory and market positioning.

Consortium Makes Conditional Offer for Talgo Stake
Feb 6, 2025

The Consortium has made an offer to acquire a significant stake in Talgo, S.A., a company known for its involvement in the rail industry, from Pegaso Transportation International. The offer, valued at up to 177 million euros, is contingent upon various conditions, including regulatory approvals, and is structured in two tranches based on future financial performance. The Consortium intends not to exceed a 30% stake, avoiding a mandatory public acquisition offer.

Talgo Receives Acquisition Offer for Significant Shareholding
Feb 6, 2025

Talgo, S.A. has received a non-binding offer from a group of investors led by Clerbil, S.L. for the acquisition of up to 29.7682% of its share capital. The offer includes a fixed base price per share with potential increases based on financial performance and is subject to due diligence and regulatory approvals to be completed by May 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.