Talgo S.A. (ES:TLGO)
BME:TLGO
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Talgo S.A.
(BME:TLGO)
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Rating:37Underperform
Price Target:
€2.50
▼(-20.38% Downside)
Action:DowngradedDate:03/03/26
Talgo S.A. receives the lowest possible score due to a comprehensive failure across all key metrics. The primary drivers are severe financial instability, characterized by profitability losses, high leverage, and cash burn. This fundamental weakness is compounded by a negative valuation profile and a strong bearish technical trend, making the stock a high-risk proposition.
Positive Factors
Recurring maintenance/services revenue
Talgo's maintenance and lifecycle contracts produce recurring or semi-recurring revenue that smooths the cyclicality of new-build orders. Over 2–6 months this supports revenue visibility, strengthens customer retention via long-term relationships, and bolsters aftermarket margins and utilization.
Negative Factors
Deteriorated profitability / recent deep losses
Sustained net losses through 2024–2025 erode shareholder equity and limit reinvestment capacity. Persistent negative operating margins signal issues in pricing, cost control, or project execution, undermining sustainable profitability absent structural fixes to margins or contract terms.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring maintenance/services revenue
Talgo's maintenance and lifecycle contracts produce recurring or semi-recurring revenue that smooths the cyclicality of new-build orders. Over 2–6 months this supports revenue visibility, strengthens customer retention via long-term relationships, and bolsters aftermarket margins and utilization.
Read all positive factors
Talgo S.A. (TLGO) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€357.85M
Dividend YieldN/A
Average Volume (3M)188.47K
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-16.41%
EPS Growth-952.46%
CountryES
Employees3,420
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)-0.27
Shares Outstanding134,448,460
10 Day Avg. Volume156,985
30 Day Avg. Volume188,467
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)1.55
Price to Sales (P/S)0.56
P/FCF Ratio-2.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)€677.54M
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 under...
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, man...
Talgo S.A. Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
35
Negative
Cash Flow
15
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 618.20M | 669.22M | 652.00M | 469.12M | 555.41M |
| Gross Profit | 25.40M | 125.34M | 155.32M | 262.01M | 88.38M |
| EBITDA | -16.40M | -58.66M | 77.32M | 44.67M | 62.44M |
| Net Income | -100.70M | -106.07M | 13.69M | 1.44M | 27.56M |
Balance Sheet | |||||
| Total Assets | 1.51B | 1.27B | 1.12B | 1.13B | 1.03B |
| Cash, Cash Equivalents and Short-Term Investments | 226.10M | 93.40M | 156.08M | 239.38M | 252.98M |
| Total Debt | 610.70M | 538.77M | 453.96M | 375.58M | 318.01M |
| Total Liabilities | 1.28B | 1.09B | 827.48M | 849.69M | 740.59M |
| Stockholders Equity | 223.30M | 170.61M | 278.00M | 281.18M | 287.00M |
Cash Flow | |||||
| Free Cash Flow | -140.30M | -159.37M | -142.22M | -47.64M | 4.50M |
| Operating Cash Flow | -95.80M | -110.80M | -115.75M | -25.26M | 29.65M |
| Investing Cash Flow | -44.50M | -48.57M | -18.60M | -22.38M | -11.18M |
| Financing Cash Flow | 272.90M | 97.55M | 50.71M | 33.22M | 6.21M |
Talgo S.A. Technical Analysis
Negative
3.14
Price Trends
2.87
Negative
2.87
Negative
2.86
Negative
Market Momentum
-0.03
Positive
43.62
Neutral
26.67
Neutral
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 3.14 is above the 20-day moving average (MA) of 2.78, above the 50-day MA of 2.87, and above the 200-day MA of 2.86, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €1.92B | 13.79 | 21.55% | 2.28% | 6.84% | 16.03% | |
67 Neutral | €2.75B | 18.70 | -3.10% | 13.00% | 11.61% | -212.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | €1.75B | 11.36 | 6.88% | 3.35% | -4.69% | -8.38% | |
55 Neutral | €4.93B | ― | 7.94% | 4.49% | 5.00% | -64.19% | |
51 Neutral | €586.84M | 297.92 | 0.29% | ― | 1.39% | 72.34% | |
37 Underperform | €357.85M | -3.44 | -165.56% | ― | -16.41% | -952.46% |
* Industrials Sector Average
ES:TLGO
Talgo S.A.
2.73
-0.69
-20.18%
ES:CAF
Construcciones y Auxiliar de Ferrocarriles
55.80
16.09
40.50%
ES:ENO
Elecnor
32.00
16.17
102.19%
ES:FCC
Fomento de Construcciones y Contratas
10.42
0.04
0.34%
ES:GEST
Gestamp Automocion
2.99
0.42
16.14%
ES:OHLA
Obrascon Huarte Lain
0.42
0.08
25.45%
Talgo S.A. Corporate Events
Talgo Sets Date for Release of 2025 Annual Financial Results
Feb 27, 2026
Talgo S.A. has announced it will publish its full-year 2025 financial results on 27 February 2026, after the close of trading on the Madrid Stock Exchange. The timing of the release signals an upcoming transparency event for investors and analysts...
Talgo Wins €1.3 Billion Saudi High-Speed Train Contract, Lifts Backlog to Record Level
Feb 10, 2026
Talgo has secured a major boost to its order book after the Government of Saudi Arabia awarded a contract for the manufacture and maintenance of 20 new high-speed trains for the Haramain High-Speed Railway, adding €1.332 billion and lifting ...
Talgo Calls March 2026 Extraordinary Meeting with Expanded Telematic Access
Feb 9, 2026
Talgo’s board of directors has called an Extraordinary General Shareholders’ Meeting to be held in Vitoria-Gasteiz on 12 March 2026, with a potential second call on 13 March 2026, to vote on a series of proposed corporate resolutions. ...
Talgo Wins €1.3 Billion Saudi High-Speed Train Contract, Lifting Backlog to Record Level
Feb 9, 2026
Talgo has secured a major contract in Saudi Arabia for the manufacture and maintenance of 20 new high-speed trains under the Haramain High-Speed Railway project, adding €1.332 billion to its order book and lifting its backlog to a record aro...
Talgo Overhauls Board and Committees After Series of Director Resignations
Feb 6, 2026
Talgo’s Board of Directors has approved a broad reshuffle of its governing bodies, ratifying the appointment of José Antonio Jainaga Gómez as Chairman following the resignation of former chair Carlos de Palacio y Oriol, and bringin...
Talgo Overhauls Board and Key Committees After Series of Director Resignations
Feb 6, 2026
Talgo’s board has carried out a broad reshuffle of its governing bodies, ratifying José Antonio Jainaga Gómez as chairman following the resignation of former chair Carlos de Palacio y Oriol and appointing two new independent direct...
Talgo Reshapes Board and Key Governance Committee After Extraordinary Shareholders’ Meeting
Feb 5, 2026
Talgo’s Extraordinary General Shareholders’ Meeting, held on 3 February 2026 in Vitoria-Gasteiz, approved all Board-proposed resolutions, including the confirmation of José Antonio Jainaga Gómez as a proprietary director for ...
Talgo Reshapes Board Leadership and Key Governance Committees
Feb 5, 2026
Talgo’s Board of Directors has approved a broad shake-up of its governance structure, ratifying José Antonio Jainaga Gómez as Chairman to replace outgoing chair Carlos de Palacio y Oriol and bringing in two new independent director...
Talgo Reshapes Board and Committees After Series of Director Resignations
Feb 5, 2026
Talgo’s Board of Directors has approved a sweeping refresh of its governance structure, ratifying José Antonio Jainaga Gómez as chairman following the resignation of former chair Carlos de Palacio y Oriol and appointing two new ind...
Talgo Overhauls Board and Key Committee After Extraordinary Shareholders’ Meeting
Feb 4, 2026
Talgo’s extraordinary general shareholders’ meeting, held on 3 February 2026 in Vitoria-Gasteiz with close to 60% of share capital represented, approved all resolutions proposed by the board, including the formal removal of director Go...
Talgo Reshapes Board Leadership With Appointment of New Chairman
Jan 30, 2026
Talgo S.A. has announced a leadership change at the top of its governance structure, with long-standing board member Carlos de Palacio y Oriol stepping down as chairman of the board of directors. The board has unanimously appointed José Anton...
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.