olivLaw · European equity research
TALGO, S.A. TLGO.MC
Spain · BME Madrid · ISIN ES0105065009 · Vertical: Listed companies from Spain
TALGO is a Spanish railway group that designs and maintains high-speed trains and rail systems, and its consolidated financial statements for fiscal 2025 show its activity through subsidiaries and associates, including the Meca-Medina consortium. It matters now because its exposure to associates and consortia shapes how investors can read the group's performance.
At the close of 05 Nov 2026, TALGO, S.A. (TLGO.MC) stock was 2.10 EUR (−3.23% on the day), with market capitalisation 260.4 m EUR, dividend yield 57.60%, beta 0.42, 52-week range 2.10–3.15 EUR.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 13.0
- oversold (≤ 30)
- Bollinger (20, 2)
- 2.13 – 2.49
- below the lower band · %B -0.10 · band width 15.4%
- SMA 50 / 200
- 2.44 / 2.69
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.08 / -0.06
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.8% | −0.6% | −13.1 pp | — |
| 3 months | −23.0% | −4.2% | −18.8 pp | — |
| 6 months | −24.2% | +4.3% | −28.6 pp | — |
| Year to date | −25.2% | +7.5% | −32.7 pp | — |
| 1 year | −20.3% | +9.9% | −30.3 pp | +6.7% |
| 3 years | −42.8% | +49.8% | −92.6 pp | +31.5% |
| 5 years | −55.3% | +42.8% | −98.2 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 652.0 m | 669.2 m | 618.2 m |
| Revenue YoY | unavailable | +2.6% | −7.6% |
| Net income | 13.7 m | -106.1 m | -98.2 m |
| Net income YoY | unavailable | −874.6% | unavailable |
| Diluted EPS | 0.11 | -0.86 | -0.76 |
| Diluted EPS YoY | unavailable | −881.8% | unavailable |
| net % | 2.1% | -15.8% | -15.9% |
| Free cash flow | -121.4 m | -115.4 m | -100.4 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 226.1 m EUR
- Financial debt
- unavailable EUR
- Net debt
- unavailable EUR
- Equity
- 229.4 m EUR
- Total assets
- 1.5 bn EUR
- Debt / equity
- unavailable
- Current ratio
- 1.41x
- ROE
- -48.1%
- ROA
- -7.1%
- FCF margin
- -16.2%
Financial statements (source on every figure)
Revenue and net income (EUR)
Margins
Income statement · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 652.0 m | 669.2 m | 618.2 m | esef· 20 Oct 2026verified |
| Operating income | 59.0 m | -71.4 m | -39.3 m | esef· 20 Oct 2026verified |
| Depreciation & amortisation | 17.2 m | 24.4 m | 36.3 m | esef· 20 Oct 2026verified |
| EBITDA | 76.2 m ≈ | -47.0 m ≈ | -3.0 m ≈ | esef· 20 Oct 2026derived |
| Interest expense | 39.5 m | 26.3 m | 48.8 m | esef· 20 Oct 2026verified |
| Pre-tax income | 21.3 m | -94.9 m | -87.4 m | esef· 20 Oct 2026verified |
| Income tax | 9.1 m | 13.0 m | 13.3 m | esef· 20 Oct 2026verified |
| Net income | 13.7 m | -106.1 m | -98.2 m | esef· 20 Oct 2026verified |
| Diluted EPS | 0.11 | -0.86 | -0.76 | esef· 20 Oct 2026verified |
| Dividend per share | 0.02 | 0.00 | 1.21 | esef· 20 Oct 2026derived |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 155.8 m | 93.3 m | 226.1 m | esef· 20 Oct 2026verified |
| Receivables | 470.6 m | 631.5 m | 738.6 m | esef· 20 Oct 2026verified |
| Inventories | 191.7 m | 220.0 m | 214.0 m | esef· 20 Oct 2026verified |
| Current assets | 839.7 m | 965.5 m | 1.2 bn | esef· 20 Oct 2026verified |
| Property, plant & equipment, net | 53.9 m | 56.4 m | 56.5 m | esef· 20 Oct 2026verified |
| Goodwill | 112.4 m | 112.4 m | 112.4 m | esef· 20 Oct 2026verified |
| Intangibles (excl. goodwill) | 84.9 m | 113.1 m | 125.3 m | esef· 20 Oct 2026verified |
| Total assets | 1.1 bn | 1.3 bn | 1.5 bn | esef· 20 Oct 2026verified |
| Accounts payable | 290.1 m | 346.1 m | 406.9 m | esef· 20 Oct 2026verified |
| Current liabilities | 415.2 m | 513.3 m | 851.0 m | esef· 20 Oct 2026verified |
| Total liabilities | 827.5 m | 1.1 bn | 1.3 bn | esef· 20 Oct 2026verified |
| Equity | 288.3 m | 179.1 m | 229.4 m | esef· 20 Oct 2026verified |
| Shares outstanding at year end | 124.5 m | 123.3 m | 124.3 m | esef· 20 Oct 2026derived |
Cash flow · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -115.8 m | -110.8 m | -95.8 m | esef· 20 Oct 2026verified |
| Capex | 5.7 m | 4.6 m | 4.6 m | esef· 20 Oct 2026verified |
| Free cash flow | -121.4 m ≈ | -115.4 m ≈ | -100.4 m ≈ | esef· 20 Oct 2026derived |
| Investing cash flow | -18.6 m | -48.6 m | -44.5 m | esef· 20 Oct 2026verified |
| Financing cash flow | 50.7 m | 97.5 m | 272.9 m | esef· 20 Oct 2026verified |
| Dividends paid | 1.9 m | 0 | -150.0 m | esef· 20 Oct 2026verified |
| Share repurchases | 8.8 m | 1.2 m | 0 | esef· 20 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 31.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 260.4 m EUR
Key indicators
Coverage and freshness
Score by group
31% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 16.41 – 22.38 EUR.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (EUR per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)16.41 – 22.38 (Mid 18.94)
Assumptions (illustrative, editorial)
- Risk-free rate
- 3.0%
- Equity risk premium
- 5.5%
- Beta (default)
- 1.00
- Cost of equity
- 8.5%
- Terminal growth
- 2.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 31.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -15.9% | 5 (vs peers) | 20% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -0.8x | 0 (on a fixed band) | 20% |
| Current ratio · Balance sheet | 1.4x | 51 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -38.6% | 0 (on a fixed band) | 27% |
| Shareholder yield (distributions) · Returns | 57.6% | 100 (on a fixed band) | 20% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet20/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partial5/100 · 1/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
TALGO SA (TLGO.MC). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 618.2 m EUR in 2025; YoY growth -7.6%; net margin -15.9%; ROE -49.9%.
The estimated value range is 16.41–22.38 EUR per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 18.94 EUR, the price of 2.10 EUR leaves a potential of 803.9% (value / price − 1) and a margin of safety of 88.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 31.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Shareholder yield (distributions): 57.6%
- The price is below the estimated value range
What contradicts it
- Net margin: -15.9%
- Interest coverage: -0.8x
- FCF yield: -38.6%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Listed companies from Spain · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ELE.MCEndesa SA | 46.9 bn | 21.4 | 26.4% | 10.5% | +0.5% | +43% / +134% |
| AENA.MCAena S.m.e. SA | 42.6 bn | 19.9 | 24.2% | 34.0% | +8.9% | +21% / +79% |
| AMS.MCAmadeus It Group Sociedad Anonima | 26.2 bn | 19.8 | 26.9% | 20.5% | +6.1% | −6% / −5% |
| ACS.MCAcs Actividades De Construccion Y Servicios, S.A. | 21.9 bn | 23.0 | 19.9% | 1.9% | +19.7% | +7% / +134% |
| ANA.MCAcciona SA | 11.7 bn | 14.5 | 16.9% | 4.0% | +5.5% | +24% / +66% |
| FCC.MCFomento De Construcciones Y Contratas S.A. | 5.0 bn | 30.3 | 5.3% | 1.7% | +6.9% | −8% / −14% |
| DIA.MCDistribuidora Internacional De Alimentacion SA | 2.7 bn | 20.6 | 165.6% | 2.2% | −2.7% | +51% / +380,733% |
| CMO.MCCementos Molins S.A. | 2.5 bn | 13.6 | 14.3% | 18.0% | −3.1% | +31% / unavailable |
| ENO.MCElecnor SA | 2.4 bn | 21.9 | 10.5% | 2.5% | +15.1% | −3% / +58% |
| ALM.MCAlmirall S.A. | 2.4 bn | 51.1 | 3.1% | 4.2% | +12.4% | −11% / +32% |
| FAE.MCFaes Farma SA | 1.5 bn | 19.3 | 10.8% | 13.0% | +23.7% | +3% / +57% |
| AEDAS.MCAedas Homes SA | 1.0 bn | 17.1 | 57.8% | 7.0% | −24.8% | +0% / +38% |
| EDR.MCEdreams Odigeo SA | 574.4 m | 11.5 | 21.0% | 7.8% | −0.4% | +40% / −24% |
| EAT.MCAmRest Holdings SE | 506.0 m | 31.4 | 4.3% | 0.6% | +0.1% | −34% / −61% |
| ADX.MCAudax Renovables S.A. | 468.5 m | 23.9 | 9.3% | 1.0% | −5.4% | −23% / −18% |
| TLGO.MCTalgo SA | 260.4 m | — | -49.9% | -15.9% | −7.6% | −25% / −51% |
| ATRY.MCAtrys Health, S.A. | 200.4 m | — | -49.5% | -71.1% | +8.5% | −3% / −29% |
| ENER.MCEcoener, S.A. | 175.6 m | 32.2 | 4.2% | 6.4% | +3.6% | −34% / −6% |
| ADZ.MCAdolfo Dominguez SA | 62.9 m | 38.3 | 9.0% | 1.2% | +1.8% | +39% / +40% |
| DESA.MCDesarrollos Especiales De Sistemas De Anclaje S.A. | 44.8 m | 9.2 | 152.3% | 10.0% | +2.2% | +19% / unavailable |
| EZE.MCGrupo Ezentis SA | 29.0 m | — | — | -9.3% | +147.2% | −30% / −37% |
| CLEO.MCCompañia Levantina De Edificacion Y Obras Publicas SA | 17.3 m | 14.4 | 4.1% | 3.4% | +13.4% | unavailable / unavailable |
| AYC.MCAyco Grupo Inmobiliario, S.A. | 16.4 m | — | -33.8% | — | −100.0% | unavailable / unavailable |
| EBRO.MCEbro Foods, S.A. | 3.0 m | 0.0 | 10.0% | 7.7% | −4.0% | −0% / +19% |
| A3M.MCAtresmedia Corporacion De Medios De Comunicacion, S.A. | — | — | 7.9% | 6.9% | −2.7% | +13% / +60% |
1- and 3-year price returns: for TLGO.MC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (EUR)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
TALGO is a Spanish railway group that designs and maintains high-speed trains and rail systems, and its consolidated financial statements for fiscal 2025 show its activity through subsidiaries and associates, including the Meca-Medina consortium. It matters now because its exposure to associates and consortia shapes how investors can read the group's performance.
SWOT
Strengths
- The structure of stakes in associates and consortia gives access to large projects without taking on the full risk.
- Rigorous accounting policies, including the annual goodwill impairment test, add credibility to the financial statements.
- Consolidated reporting follows international standards, which makes comparison with other companies easier.
Weaknesses
- Control over associates is limited because decisions require qualified majorities.
- Strict criteria for capitalising development can reduce the assets recognised on the balance sheet.
- Reliance on consortia for certain projects complicates direct management of execution.
Opportunities
- Development of new rail projects could extend stakes in existing or new consortia.
- Technologies developed in-house could be commercialised if recognition criteria are met.
- Standardised ESEF reporting may ease access for investors interested in transparency.
Threats
- A reduction in public rail infrastructure investment could shrink the volume of available projects.
- Currency fluctuations can affect results from activities denominated in other currencies.
- Difficulties in executing consortium projects could create reputational and financial risks.
Risks
- Dependence on consortiamedium
The Meca-Medina consortium is decisive for part of the activity, and decisions require qualified majorities, which can limit the group's control 1.
- Capitalisation of development costsmedium
If the economic benefits of technology projects do not materialise, capitalised assets may require impairment 1.
- Currency risklow
Exchange differences can affect the financial result when transactions or balances are denominated in foreign currencies 1.
- Goodwill testingmedium
Goodwill is tested annually for impairment and losses are not reversed, which could weigh on profit in a difficult year 1.
- Dependence on public ordershigh
Demand for rail rolling stock could fall if infrastructure budgets are reduced, and the source gives no detail on the order book.
Investment thesis
What would need to be true (bull case)
- The consortium structure and capitalised technologies can support participation in complex projects, and rigorous reporting standards give investors clarity.
- If rail development projects translate into revenue, intangible assets could generate returns over the long term.
- ESEF reporting transparency and external audit oversight can strengthen confidence in the group's financial information.
What would break the thesis
- Dependence on consortia and on decisions requiring qualified majorities may limit the group's ability to control project execution.
- Strict capitalisation criteria and impairment tests could lead to write-downs if projects do not proceed as planned.
- Exposure to currency movements and a possible cut in public investment could affect results over the medium term.
What to watch
- Revenue and result trend of the Meca-Medina consortium2026
- New orders and participations in rail consortia2026
- Effect of currency fluctuations on financial resultQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
According to the consolidated notes for fiscal 2025, TALGO, S.A. and its subsidiaries operate as a group that also holds stakes in associates, accounted for under the equity method. The main associate disclosed in the source is Consorcio Español Alta Velocidad Meca-Medina, S.A., in which the group has significant influence without control, and its auditor is KPMG Auditores, S.L. 1. The group had no joint arrangements at 31 December 2025 and 2024, and there were no changes to the consolidation perimeter in 2025 1.
The functional and presentation currency of the parent is the euro, and consolidated statements are presented in thousands of euros 1. The group applies IFRS 16 to leases, recognising right-of-use assets and lease liabilities, with the permitted exemptions for contracts under 12 months or of low value 1.
Intangible assets include development costs capitalised for technologies applied to the rail field, amortised over useful lives not exceeding five years, and goodwill is tested annually for impairment 1. These items show that the business model depends on long-term technology projects whose costs must be justified by future economic benefits.
Segments
Associate and consortium stakes
The Meca-Medina consortium is treated as an associate, and the group incorporates its share of net assets using the equity method 1. The consortium's figures show a modest operating scale relative to its balance sheet, with operating income of 2,502 thousand euros in 2025 1.
Rail technology development
Development costs are recognised as intangible assets only when strict criteria are met, including technical feasibility, intention and ability to use or sell, and probable economic benefits 1. If projects fail to generate the expected benefits, the capitalised value could be subject to adjustment.
Tangible assets
Tangible assets are depreciated on a straight-line basis over useful lives ranging from a few years for installations to decades for buildings, and residual values and lives are reviewed at each reporting date 1. These rules influence long-term operating margins.
Market context
The analysed source is the consolidated statements, which provide no market data on the group's share or the size of the high-speed rail market. For context, the associate Meca-Medina reports total assets of 217,339 thousand euros at 31 December 2025 1, an indicator of the scale of the infrastructure activities in which the group holds stakes.
The rolling-stock market depends on public orders and infrastructure programmes, which the source does not detail. If the pace of high-speed line investment changes, demand for consortia and associated projects could be affected, but this effect is not quantified in the document analysed 1.
Trends
- Project consolidation through consortiamixed
Participation through associates in large projects spreads risk, provided decisions are taken by the 75 per cent majority described in the notes 1. This structure can support complex projects but limits the group's direct control.
- Digitalisation and ESEF reportingtailwind
Reporting in the ESEF format standardises financial information and makes comparison between companies easier, increasing transparency for investors 1. The effect on internal reporting costs can nonetheless be significant.
- Pressure on development costsheadwind
Strict criteria for capitalising development costs mean many expenses must be recognised directly in profit, which can weigh on results during periods of intense innovation 1.
- Exposure to currency movementsheadwind
Foreign-currency activities are translated at transaction or closing rates, and differences are recognised in profit or in other comprehensive income 1. Currency volatility can therefore affect the profit and loss account.
Competitive position
The source does not identify the group's competitors. The document names only the implicit consortium partner through the Meca-Medina associate and its auditor, KPMG Auditores, S.L. 1. A full competitive analysis would require other sources, such as competitors' reports or sector studies.
The group's competitive position cannot be assessed from the consolidated statements, which focus on accounting policies and financial notes. The consortium structure and joint projects could nonetheless offer an advantage in large tenders if participation is maintained 1.
- Project consortia
Direct competition on large projects typically takes place through ad hoc consortia, and the source names no other companies, so no rival list can be confirmed.
- Auditor of the Meca-Medina associate
Not a competitor but the external auditor of the associated consortium, mentioned in the source as part of the financial verification.
- Rail technology suppliers
The source identifies no competing suppliers; the capitalised internal development suggests the group manages its own technologies.
- Partners in associations
Consortium members decide on the basis of participation rights, but they are co-investors in projects rather than direct competitors.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202520 Oct 2026
- Annual report 202520 Oct 2026
- Annual report 202408 May 2025
- Annual report 202308 May 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / TALGO, S.A. · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.