Talgo S.A. (TLGO) AI Stock Analysis

• Market Cap: €311.42M
• Dividend Yield: N/A
• Average Volume (3M): 188.47K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.73
• Revenue Growth: -16.41%
• EPS Growth: -952.46%
• Country: ES
• Employees: 3,420
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): -0.52
• 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

• Rating: 43 Neutral
• Price Target: €2.50 ▼(-6.37% Downside)

Talgo S.A.'s overall stock score is primarily impacted by its financial difficulties, including negative profitability and cash flow issues. The technical analysis indicates bearish momentum, and the valuation metrics are poor due to a negative P/E ratio and lack of dividend yield.

Talgo S.A. Business Overview & Revenue Model

Company Description

Talgo S.A. is a Spanish company specializing in the design and manufacture of high-speed trains and railway systems. Established in 1942, Talgo operates primarily in the rail transport sector, providing innovative solutions for passenger rail services. The company is renowned for its lightweight train technology, which enhances energy efficiency and reduces operational costs. Talgo's core products include high-speed trains, intercity trains, and maintenance services, catering to various rail operators worldwide.

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. 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	669.22M	652.00M	469.12M	555.41M	487.10M
Gross Profit	125.34M	155.32M	262.01M	88.38M	49.91M
EBITDA	-58.66M	77.32M	44.67M	62.44M	13.83M
Net Income	-106.07M	13.69M	1.44M	27.56M	-17.45M
Balance Sheet
Total Assets	1.27B	1.12B	1.13B	1.03B	902.87M
Cash, Cash Equivalents and Short-Term Investments	93.40M	156.08M	239.38M	252.98M	238.35M
Total Debt	538.77M	453.96M	375.58M	318.01M	306.85M
Total Liabilities	1.09B	827.48M	849.69M	740.59M	645.20M
Stockholders Equity	170.61M	278.00M	281.18M	287.00M	257.67M
Cash Flow
Free Cash Flow	-159.37M	-142.22M	-47.64M	4.50M	-110.26M
Operating Cash Flow	-110.80M	-115.75M	-25.26M	29.65M	-85.56M
Investing Cash Flow	-48.57M	-18.60M	-22.38M	-11.18M	-24.70M
Financing Cash Flow	97.55M	50.71M	33.22M	6.21M	13.01M

Talgo S.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:TLGO, the sentiment is Neutral. The current price of 2.67 is above the 20-day moving average (MA) of 2.61, below the 50-day MA of 2.75, and below the 200-day MA of 3.13, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:TLGO.

Talgo S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCC	―	€5.40B	22.80	5.28%	4.33%	5.00%	-64.19%
CAF	―	€1.88B	15.12	14.10%	2.45%	6.84%	16.03%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GEST	―	€1.85B	11.75	7.13%	2.96%	-3.58%	-29.51%
ENO	―	€2.41B	―	-6.79%	29.31%	11.61%	-212.68%
OHLA	―	€654.30M	0.73	-7.07%	―	5.25%	-19.03%
TLGO	―	€311.42M	20.37	-92.71%	―	-16.41%	-952.46%