Talgo S.A. (TLGO) AI Stock Analysis

Talgo S.A.

(BME:TLGO)

Select Model

Rating:39Underperform

Price Target:EUR 2.00▼(-8.68% Downside)

Action:downgraded

Date:10/29/26

Talgo’s score is driven primarily by severe financial weakness, including persistent losses, heavy leverage, and negative cash flow. Bearish technical positioning and an unprofitable valuation profile further weigh on the result, although oversold momentum readings provide a limited offset.

Positive Factors

Integrated rail business modelTalgo combines train design and manufacturing with maintenance and lifecycle services, giving it multiple ways to participate in customer spending. This integrated model can support deeper operator relationships and recurring service activity beyond initial train deliveries.

Negative Factors

Persistent unprofitabilityContinuing negative EBIT and a deeply negative net margin show that improved gross margin has not yet translated into viable operating earnings. Persistent losses weaken internal funding capacity and make durable earnings recovery dependent on better execution and cost absorption.

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

Market Cap: EUR 291.37M
Dividend Yield: ―
Average Volume (3M): 82.77K
Price to Earnings (P/E): -3.1
Beta (1Y): 0.47
Revenue Growth: 22.04%
EPS Growth: 69.55%
Country: Spain
Employees: 3,622
Sector: General
Sector Strength: 55
Industry: Railroads

Talgo S.A. Business Overview & Revenue Model

Company Description

Operating on a global scale, Talgo, S.A. is engaged in the engineering, manufacturing, and upkeep of railway rolling stock and complementary machinery. Their offerings include a range of high-performance very high-speed, high-speed, and intercity tra...

Talgo S.A. Financial Statement Overview

Summary

Financial performance is at the minimum score because Talgo has deeply negative profitability, high leverage, thin equity, and materially negative operating and free cash flow.

Income Statement

28Negative

Balance Sheet

32Negative

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09B	618.20M	669.22M	652.00M	469.12M	555.41M
Gross Profit	276.91M	25.40M	125.34M	155.32M	262.01M	88.38M
EBITDA	30.72M	-20.03M	-58.66M	77.32M	44.67M	62.44M
Net Income	-89.87M	-98.19M	-106.07M	13.69M	1.44M	27.56M
Balance Sheet
Total Assets	1.49B	1.51B	1.27B	1.12B	1.13B	1.03B
Cash, Cash Equivalents and Short-Term Investments	120.16M	226.10M	93.40M	156.08M	239.38M	252.98M
Total Debt	652.03M	730.56M	538.77M	453.96M	375.58M	318.01M
Total Liabilities	1.39B	1.28B	1.09B	827.48M	849.69M	740.59M
Stockholders Equity	91.89M	223.30M	170.61M	278.00M	281.18M	287.00M
Cash Flow
Free Cash Flow	-243.58M	-140.30M	-159.37M	-142.22M	-47.64M	4.50M
Operating Cash Flow	-195.37M	-95.80M	-110.80M	-115.75M	-25.26M	29.65M
Investing Cash Flow	-49.03M	-44.50M	-48.57M	-18.60M	-22.38M	-11.18M
Financing Cash Flow	250.04M	272.90M	97.55M	50.71M	33.22M	6.21M

Talgo S.A. Technical Analysis

Technical Analysis SentimentNegative

Last Price2.19

Price Trends

50DMA2.47Negative

100DMA2.58Negative

200DMA2.69Negative

Market Momentum

MACD-0.06Positive

RSI18.95Positive

STOCH10.21Positive

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 2.19 is below the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.47, and below the 200-day MA of 2.69, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 18.95 is Positive, neither overbought nor oversold. The STOCH value of 10.21 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 (55)

Financial Indicators

ES:TLGO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ES:FER	67Neutral	EUR 36.20B	59.84	10.42%	2.16%	5.46%	-81.98%
ES:ENO	64Neutral	EUR 2.42B	12.68	19.61%	11.05%	6.96%	―
ES:CAF	63Neutral	EUR 2.60B	10.91	24.38%	1.99%	12.43%	38.72%
ES:SCYR	61Neutral	EUR 3.19B	24.84	13.38%	3.14%	3.64%	41.50%
ES:FCC	60Neutral	EUR 4.84B	23.13	6.14%	4.80%	9.68%	-10.60%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ES:TLGO	39Underperform	EUR 291.37M	-3.09	-48.88%	―	22.04%	69.55%

* General Sector Average

Performance Comparison

ES:TLGO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ES:TLGO	Talgo S.A.	2.21	-0.46	-17.07%
ES:CAF	Construcciones y Auxiliar de Ferrocarriles	76.30	23.91	45.65%
ES:ENO	Elecnor SA	28.90	-0.05	-0.19%
ES:FER	Ferrovial SA	51.46	-2.45	-4.55%
ES:FCC	Fomento de Construcciones y Contratas	10.42	-0.55	-5.01%
ES:SCYR	Sacyr SA	4.14	0.43	11.43%

Talgo S.A. Corporate Events

Talgo to Publish Q3 2026 Results After Madrid Market Close

Oct 27, 2026

Talgo S.A. has announced it will release its financial results for the third quarter of 2026, covering the period from January to September, on 12 November 2026. The figures will be published after the close of trading on the Madrid Stock Exchange, a...

Talgo Strengthens Corporate Governance with New Board Regulations

Sep 10, 2026

Talgo has formalized detailed regulations for its Board of Directors that define the body’s general functions, principles of action and internal organization. The rules cover how the board is composed, how directors are selected, appointed and...

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.

Date of analysis: Oct 29, 2026

Talgo S.A. AI Stock Analysis