TALGO TLGO.MC
SpainIndustrials · RailroadsBolsa de Madrid (BME) · EUR
3.23 EUR (+34.9%)
5 analysts
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TALGO is a Spanish manufacturer of high-speed trains and rolling stock, with a business model based on the design, manufacturing, and maintenance of trains for railway operators worldwide.
Listed on Bolsa de Madrid (BME) · Symbol TLGO.MC · BME: TLGO · Currency EUR
Key points
from its scores- ✓Strong growth9.5
- ✕Fragile balance sheet1.4
- ✕Little or no dividend1.5
- ✕Little competitive advantage2.3
AI analysis
bottom line, main risk, context and newsThe combination of extreme debt, minimal margins, and lack of cash generation makes TALGO a very high-risk investment, especially in a rising interest rate environment.
TALGO presents a very fragile financial profile: its net debt is 76 times its EBITDA, the operating margin is only 3.12%, and ROE is negative (-39.18%). Despite strong revenue growth (38.7%), the company does not generate free cash flow (negative conversion) and its valuation, although seemingly cheap on a P/E basis, hides an EV/EBITDA of 128. The rising interest rate environment worsens its situation, making its debt more expensive and pressuring its balance sheet.
The main risk is its extreme leverage (net debt 76x EBITDA), which leaves it with no room for maneuver in the face of any operational shock or interest rate hike, potentially compromising its financial viability.
Context and risks
TALGO operates in an industrial sector with very low margins (3.12%) and net debt that is 76 times its EBITDA, making it extremely vulnerable to any tightening of financial conditions. The rise in long-term interest rates in the US and the strength of the dollar, in a rising rate environment, make its financing more expensive and pressure its already fragile balance sheet. Furthermore, its domicile in Spain, with a high governance risk, adds a layer of institutional risk not reflected in its financial metrics.
Is TALGO stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 783% above the Industrials median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 128.0 | 14.5 | +783% |
| Price / book | 1.6 | 4.1 | −60% |
| Price / sales | 0.4 | 2.1 | −79% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.9 out of 10 (median for Industrials: 5.0).
Average analyst target: 3.23 EUR, +34.9% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 2.3 (sector 5.8), Growth 9.5 (sector 6.6).
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- Forward P/E
- 13.7
- EV / EBITDA
- 128.0
- Price / book
- 1.6
- Price / sales
- 0.4
- Market cap
- 321.1M EUR
- Enterprise value
- 808.4M EUR
Profitability
- ROE
- −39.2%
- ROA
- 0.4%
- ROIC (approx.)
- 2.8%
- Gross margin
- 48.7%
- Operating margin
- 3.1%
- Net margin
- −8.2%
- Free cash flow
- −77.5M EUR
- FCF yield
- −24.1%
- Cash conversion
- −1,228%
Solvency
- Total debt
- 602.8M EUR
- Net debt
- 482.4M EUR
- Cash
- 120.4M EUR
- EBITDA
- 6.3M EUR
- Net debt / EBITDA
- 76.41
- Debt / equity
- 298.78
- Current ratio
- 1.64
- Quick ratio
- 1.31
Growth
- Revenue growth
- +38.7%
- EPS (TTM)
- −0.46 EUR
- EPS (forward)
- 0.17 EUR
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.98
- Analyst consensus
- none (5)
- Target price
- 3.23 EUR
- 52-week range
- 2.34 – 3.21
Recent news
All TLGO.MC news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about TALGO
Is TALGO stock cheap or expensive?
On EV / EBITDA, it trades 783% above the Industrials median. Valuation score: 2.9 out of 10 (median for Industrials: 5.0). Average analyst target: 3.23 EUR, +34.9% versus the price. This is not investment advice.
What score does TALGO get on MeridIAn Screener?
It scores 3.2 out of 10, rank 2,070 of 2,130 (better than 3% of the companies analysed). Its strongest category is Growth (9.5) and its weakest, Financial health (1.4). Analysis of 08/10/2026.
How much is TALGO worth on the stock market?
Its market capitalisation is 321.1M EUR and its enterprise value, debt included, is 808.4M EUR.
How much debt does TALGO have?
Its net debt (debt minus cash) is 482.4M EUR. That is 76.41 times its EBITDA; the Industrials median is 1.58.
Does TALGO pay a dividend?
It pays no dividend, or almost none.
How has TALGO stock performed over the last year?
It has fallen 9.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 2.34 and 3.21 EUR. Past performance does not guarantee future results.
What do analysts think of TALGO?
5 analysts cover it; their average recommendation is “none” and their average target is 3.23 EUR (+34.9% versus the price). It is an estimate, not market data.