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Talgo

BME:TLGO
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TLGO
BME
€763M
Market Cap
  1. Home
  2. ES
  3. Capital Goods
Company description

Talgo, S.A. designs, manufactures, and sells rolling stock and maintenance equipment worldwide. The last earnings update was 9 days ago. More info.


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TLGO Share Price and Events
7 Day Returns
0.2%
BME:TLGO
1.7%
ES Machinery
1.1%
ES Market
1 Year Returns
8.5%
BME:TLGO
-14.8%
ES Machinery
-7.5%
ES Market
TLGO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Talgo (TLGO) 0.2% -3.1% -7.3% 8.5% 28.9% -
ES Machinery 1.7% -2.8% -2% -14.8% 14.9% -7.2%
ES Market 1.1% -2.8% 1.2% -7.5% 6.8% -15.6%
1 Year Return vs Industry and Market
  • TLGO outperformed the Machinery industry which returned -14.8% over the past year.
  • TLGO outperformed the Market in Spain which returned -7.5% over the past year.
Price Volatility
TLGO
Industry
5yr Volatility vs Market

Value

 Is Talgo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Talgo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Talgo.

BME:TLGO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.7%
Perpetual Growth Rate 10-Year ES Government Bond Rate 1.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BME:TLGO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ES Govt Bond Rate 1.5%
Equity Risk Premium S&P Global 8.2%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.049 (1 + (1- 25%) (39.55%))
1.241
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.53% + (1.241 * 8.18%)
11.68%

Discounted Cash Flow Calculation for BME:TLGO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Talgo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BME:TLGO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 11.68%)
2019 51.90 Analyst x4 46.47
2020 7.68 Analyst x4 6.15
2021 76.73 Analyst x3 55.09
2022 73.68 Est @ -3.98% 47.37
2023 71.96 Est @ -2.33% 41.43
2024 71.12 Est @ -1.17% 36.66
2025 70.86 Est @ -0.36% 32.71
2026 71.01 Est @ 0.2% 29.35
2027 71.43 Est @ 0.6% 26.44
2028 72.06 Est @ 0.88% 23.88
Present value of next 10 years cash flows €345.55
BME:TLGO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €72.06 × (1 + 1.53%) ÷ (11.68% – 1.53%)
€720.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €720.72 ÷ (1 + 11.68%)10
€238.85
BME:TLGO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €345.55 + €238.85
€584.41
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €584.41 / 135.77
€4.3
BME:TLGO Discount to Share Price
Calculation Result
Value per share (EUR) From above. €4.30
Current discount Discount to share price of €5.62
= -1 x (€5.62 - €4.30) / €4.30
-30.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Talgo is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Talgo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Talgo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BME:TLGO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €0.15
BME:TLGO Share Price ** BME (2019-05-22) in EUR €5.62
Spain Machinery Industry PE Ratio Median Figure of 6 Publicly-Listed Machinery Companies 22.04x
Spain Market PE Ratio Median Figure of 133 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Talgo.

BME:TLGO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BME:TLGO Share Price ÷ EPS (both in EUR)

= 5.62 ÷ 0.15

37.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Talgo is overvalued based on earnings compared to the ES Machinery industry average.
  • Talgo is overvalued based on earnings compared to the Spain market.
Price based on expected Growth
Does Talgo's expected growth come at a high price?
Raw Data
BME:TLGO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
26.8%per year
Europe Machinery Industry PEG Ratio Median Figure of 126 Publicly-Listed Machinery Companies 1.71x
Spain Market PEG Ratio Median Figure of 77 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

BME:TLGO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 37.03x ÷ 26.8%

1.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Talgo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Talgo's assets?
Raw Data
BME:TLGO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €2.42
BME:TLGO Share Price * BME (2019-05-22) in EUR €5.62
Spain Machinery Industry PB Ratio Median Figure of 7 Publicly-Listed Machinery Companies 1.77x
Spain Market PB Ratio Median Figure of 179 Publicly-Listed Companies 1.7x
BME:TLGO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BME:TLGO Share Price ÷ Book Value per Share (both in EUR)

= 5.62 ÷ 2.42

2.33x

* Primary Listing of Talgo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Talgo is overvalued based on assets compared to the ES Machinery industry average.
X
Value checks
We assess Talgo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Talgo has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Talgo expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Talgo expected to grow at an attractive rate?
  • Talgo's earnings growth is expected to exceed the low risk savings rate of 1.5%.
Growth vs Market Checks
  • Talgo's earnings growth is expected to exceed the Spain market average.
  • Talgo's revenue growth is expected to exceed the Spain market average.
Annual Growth Rates Comparison
Raw Data
BME:TLGO Future Growth Rates Data Sources
Data Point Source Value (per year)
BME:TLGO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 26.8%
BME:TLGO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 18.2%
Spain Machinery Industry Earnings Growth Rate Market Cap Weighted Average 20.8%
Spain Machinery Industry Revenue Growth Rate Market Cap Weighted Average 6.1%
Spain Market Earnings Growth Rate Market Cap Weighted Average 8.4%
Spain Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BME:TLGO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BME:TLGO Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 613 145 64 4
2020-12-31 621 64 7
2019-12-31 470 55 45 7
BME:TLGO Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 329 21
2018-12-31 327 152 18
2018-09-30 324 14
2018-06-30 334 155 18
2018-03-31 350 23
2017-12-31 386 185 34
2017-09-30 436 53
2017-06-30 498 21 53
2017-03-31 553 59
2016-12-31 582 -58 62
2016-09-30 609 53
2016-06-30 610 -32 71

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Talgo's earnings are expected to grow significantly at over 20% yearly.
  • Talgo's revenue is expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BME:TLGO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Talgo Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BME:TLGO Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.51 0.66 0.41 4.00
2020-12-31 0.50 0.54 0.44 7.00
2019-12-31 0.35 0.41 0.32 6.00
BME:TLGO Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 0.15
2018-12-31 0.13
2018-09-30
2018-06-30 0.13
2018-03-31
2017-12-31 0.25
2017-09-30
2017-06-30 0.39
2017-03-31
2016-12-31 0.45
2016-09-30
2016-06-30 0.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Talgo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Talgo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Spain market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Spain market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Talgo has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Talgo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Talgo's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Talgo's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Talgo's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Talgo's 1-year earnings growth is negative, it can't be compared to the ES Machinery industry average.
Earnings and Revenue History
Talgo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Talgo Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BME:TLGO Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 329.38 20.61 111.91
2018-12-31 326.58 17.71 111.01
2018-09-30 323.59 13.60 108.17
2018-06-30 333.97 18.25 107.11
2018-03-31 349.99 22.90 106.57
2017-12-31 386.49 34.30 104.07
2017-09-30 435.83 53.25 101.44
2017-06-30 497.91 53.30 101.38
2017-03-31 552.73 59.15 98.84
2016-12-31 582.43 61.85 96.94
2016-09-30 608.73 52.98 97.97
2016-06-30 609.66 70.65 95.08
2016-03-31 588.33 69.28 97.47
2015-12-31 523.73 59.58 98.71
2015-09-30 485.79 66.68 101.16
2015-06-30 422.69 47.07 107.45
2015-03-31 393.49 41.90 105.46
2014-12-31 386.59 38.48 104.29
2013-12-31 327.88 30.98 92.77
2012-12-31 330.55 35.38 90.04

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Talgo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Talgo used its assets less efficiently than the ES Machinery industry average last year based on Return on Assets.
  • Talgo's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Talgo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Talgo has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Talgo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Talgo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Talgo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Talgo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Talgo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Talgo Company Filings, last reported 1 month ago.

BME:TLGO Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 328.12 301.77 383.76
2018-12-31 328.12 301.77 383.76
2018-09-30 323.94 284.82 193.57
2018-06-30 323.94 284.82 193.57
2018-03-31 313.54 297.66 243.23
2017-12-31 313.54 297.66 243.23
2017-09-30 306.48 302.11 68.20
2017-06-30 306.48 302.11 68.20
2017-03-31 293.78 252.67 39.17
2016-12-31 293.78 252.67 39.17
2016-09-30 265.40 243.35 6.68
2016-06-30 265.40 243.35 6.68
2016-03-31 231.00 171.19 21.92
2015-12-31 231.00 171.19 21.92
2015-09-30 195.41 223.22 17.30
2015-06-30 195.41 223.22 17.30
2015-03-31 249.61 86.19 88.03
2014-12-31 249.61 86.19 88.03
2013-12-31 190.30 75.35 96.07
2012-12-31 149.32 83.61 12.63
  • Talgo's level of debt (92%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.1% vs 92% today).
  • Debt is well covered by operating cash flow (50.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).
X
Financial health checks
We assess Talgo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Talgo has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Talgo's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Talgo dividends. Estimated to be 2.53% next year.
If you bought €2,000 of Talgo shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Talgo's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Talgo's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BME:TLGO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Machinery Industry Average Dividend Yield Market Cap Weighted Average of 138 Stocks 3%
Spain Market Average Dividend Yield Market Cap Weighted Average of 76 Stocks 4.4%
Spain Minimum Threshold Dividend Yield 10th Percentile 1.3%
Spain Bottom 25% Dividend Yield 25th Percentile 2.2%
Spain Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BME:TLGO Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.37 2.00
2020-12-31 0.10 5.00
2019-12-31 0.07 3.00
BME:TLGO Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2018-11-15 0.000 0.000
2018-07-26 0.000 0.000
2018-05-11 0.000 0.000
2018-02-27 0.000 0.000
2017-07-21 0.072 1.608
2017-02-28 0.072 1.374

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Talgo has not reported any payouts.
  • Unable to verify if Talgo's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Talgo's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Talgo has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Talgo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Talgo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Talgo has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Talgo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
José de Oriol Fabra
COMPENSATION €11,187,000
AGE 55
TENURE AS CEO 16.4 years
CEO Bio

Mr. Jose María de Oriol Fabra serves as the Chief Executive Officer at Talgo, S.A since December, 2002 and served as its Deputy Chairman. Mr. de Oriol Fabra serves as Deputy Chairman and Director for Transtech Oy.

CEO Compensation
  • José's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • José's remuneration is higher than average for companies of similar size in Spain.
Management Team Tenure

Average tenure and age of the Talgo management team in years:

15.3
Average Tenure
51
Average Age
  • The average tenure for the Talgo management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Carlos de Palacio y Oriol

TITLE
Chairman & President
COMPENSATION
€11M
AGE
65

José de Oriol Fabra

TITLE
CEO & Director
COMPENSATION
€11M
AGE
55
TENURE
16.4 yrs

Juan Nardiz Amurrio

TITLE
Consultant
COMPENSATION
€20K

Eduardo Fernández-Gorostiaga

TITLE
Chief Financial Officer
AGE
45
TENURE
16.3 yrs

Luis Henar

TITLE
Chief Operating Officer
AGE
51

Fernando Aznar

TITLE
Business Development Director
AGE
48

Yolanda Juanas

TITLE
Human Resources Director
AGE
52

María José Peña

TITLE
Secretary
TENURE
4.2 yrs

Diego Sobron

TITLE
Deputy Chief Financial Officer
AGE
46
TENURE
15.3 yrs

Mario Alejandro García

TITLE
Deputy Secretary
TENURE
4.2 yrs
Board of Directors Tenure

Average tenure and age of the Talgo board of directors in years:

4.2
Average Tenure
55.5
Average Age
  • The tenure for the Talgo board of directors is about average.
Board of Directors

José de Oriol Fabra

TITLE
CEO & Director
COMPENSATION
€11M
AGE
55

Emilio Berlín

TITLE
Independent Director
COMPENSATION
€98K
AGE
66
TENURE
4.2 yrs

Carlos de Palacio y Oriol

TITLE
Chairman & President
COMPENSATION
€11M
AGE
65
TENURE
17.3 yrs

Albertus Meerstadt

TITLE
Independent Director
COMPENSATION
€83K
AGE
56
TENURE
4.2 yrs

Javier Bañon

TITLE
Director
AGE
54
TENURE
13.2 yrs

Christian Schuchmann

TITLE
Independent Director
COMPENSATION
€28K
AGE
76
TENURE
4.2 yrs

Miguel Abelló Gamazo

TITLE
Representative Director
AGE
40
TENURE
4.2 yrs

Javier Fernando Palacio

TITLE
Representative Director
AGE
38
TENURE
4.2 yrs

Belén Villalonga Morenés

TITLE
Independent Director
COMPENSATION
€60K
AGE
50
TENURE
4.2 yrs

Jack Pope

TITLE
Independent Director
COMPENSATION
€75K
AGE
69
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Talgo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Talgo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Talgo, S.A. (BME:TLGO) Investing Your Capital Efficiently?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Do Institutions Own Talgo, S.A. (BME:TLGO) Shares?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Companies that have been privatized tend to have low insider ownership. … institutions own shares in the company.

Simply Wall St -

Can You Imagine How Talgo's (BME:TLGO) Shareholders Feel About The 17% Share Price Increase?

(BME:TLGO) share price is up 17% in the last three years, clearly besting than the market return of around 6.7% (not including dividends). … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During the three years of share price growth, Talgo actually saw its earnings per share (EPS) drop 39% per year.

Simply Wall St -

Should You Be Worried About Talgo, S.A.'s (BME:TLGO) 5.4% Return On Equity?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.054 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Does Talgo, S.A.'s (BME:TLGO) P/E Ratio Tell You?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Talgo, S.A.'s (BME:TLGO) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Do Talgo, S.A.’s (BME:TLGO) Returns Compare To Its Industry?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Is Talgo, S.A.'s (BME:TLGO) CEO Pay Fair?

José de Oriol Fabra became the CEO of Talgo, S.A. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does José de Oriol Fabra's Compensation Compare With Similar Sized Companies?

Simply Wall St -

How Many Talgo SA (BME:TLGO) Shares Do Institutions Own?

With a market capitalization of €705m, Talgo is a small cap stock, so it might not be well known by many institutional investors. … Taking a look at the our data on the ownership groups (below), it's seems that. … We can zoom in on the different ownership groups, to learn more about TLGO

Simply Wall St -

Should You Be Concerned About Talgo SA's (BME:TLGO) ROE?

This article is for those who would like to learn about Return On Equity (ROE). … The formula for return on equity is: … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Does Talgo SA's (BME:TLGO) P/E Ratio Tell You?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll show how you can use Talgo SA's (BME:TLGO) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Talgo, S.A. designs, manufactures, and sells rolling stock and maintenance equipment worldwide. It offers very high speed, high speed, and intercity trains; and locomotives. The company also provides maintenance equipment, including underfloor wheel lathes and shunting cars, as well as measuring equipment to railway operators. In addition, it offers maintenance and rolling stock refurbishment services. The company was formerly known as Pegaso Rail International, S.A. Talgo, S.A. was founded in 1942 and is headquartered in Madrid, Spain.

Details
Name: Talgo, S.A.
TLGO
Exchange: BME
Founded: 1942
€763,037,516
135,771,800
Website: http://www.talgo.com
Address: Talgo, S.A.
Paseo del tren Talgo, 2,
Las Matas,
Madrid,
Madrid, 28290,
Spain
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BME TLGO Class A Ordinary Shares Bolsas y Mercados Espanoles ES EUR 07. May 2015
OTCPK TLLG.F Class A Ordinary Shares Pink Sheets LLC US USD 07. May 2015
LSE 0R99 Class A Ordinary Shares London Stock Exchange GB EUR 07. May 2015
Number of employees
Current staff
Staff numbers
2,240
Talgo employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 00:42
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.