TalgoSTU:XTG +0.95%71 Gross Margin % is 7.97% as of Dec. 2025, which is 71% below its 10-year median of 27.17. GuruFocus rates STU:XTG with a GF Score™ of 71/100 and a GF Value™ of €3.98 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 977 Transportation companies, Talgo ranks worse than 75.84% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Talgo's Gross Profit for the
six
months ended in Dec. 2025 was €27.7 Mil. Talgo's Revenue for the
six
months ended in Dec. 2025 was €348.1 Mil. Therefore, Talgo's Gross Margin % for the quarter that ended in Dec. 2025 was 7.97%.
Warning Sign:
Talgo SA gross margin has been in long-term decline. The average rate of decline per year is -14.4%.
The historical rank and industry rank for Talgo's Gross Margin % or its related term are showing as below:
STU:XTG'
s Gross Margin % Range Over the Past 10 Years
Min: 6.36 Med: 27.17 Max: 33.84
Current: 11.08
During the past 13 years, the highestGross Margin % of Talgo was 33.84%. The lowest was 6.36%. And the median was 27.17%.
STU:XTG's Gross Margin % is ranked worse than 75.84% of 977
companies
in the Transportation industry
Industry Median: 20.42
vs STU:XTG: 11.08
Talgo had a gross margin of 7.97% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Talgo was -14.40% per year.
Talgo (STU:XTG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Talgo had a gross margin of 7.97% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Talgo Gross Margin % Related Terms
Talgo Gross Margin % Historical Data
* Premium members only.
The historical data trend for Talgo's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:XTG vs UNP, CSX, NSC: Gross Margin % Comparison
For the Railroads subindustry, Talgo's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Talgo Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Talgo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Talgo's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Talgo (STU:XTG) has a Gross Margin % of 7.97% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Talgo and its competitors. This is 71% below median its historical median of 27.17. Over the past decade, Talgo's Gross Margin % has ranged from 6.36 to 33.84. According to the industry distribution chart, Talgo ranks #741 out of 977 companies in the Transportation industry, placing it in the top 75.8%.
Is Talgo's Gross Margin % too high?
Talgo's current Gross Margin % of 7.97% is 71% below median its 10-year median of 27.17. Over the past 10 years, this metric has ranged from a low of 6.36 to a high of 33.84. The Transportation industry median Gross Margin % is 20.42. Talgo's value of 7.97% is 61% below this industry median. Based on the distribution chart, Talgo ranks #741 out of 977 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Talgo has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Talgo's Gross Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Talgo ranks #741 out of 977 companies for Gross Margin %. This places Talgo in the lower half of its industry. The industry median Gross Margin % is 20.42. Talgo's value of 7.97% is 61% below this benchmark. Historically, Talgo's own Gross Margin % has ranged from 6.36 to 33.84 over the past decade. While the company's 10-year median is 27.17 vs. the industry median of 20.42, Talgo has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Talgo's current Gross Margin % of 7.97% is 61% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Talgo and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Talgo's current Gross Margin % is 7.97%, which is 71% below median its own 10-year median of 27.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Talgo stock overvalued right now?
Based on GuruFocus' analysis, Talgo (STU:XTG) is currently considered Possible Value Trap. The stock's GF Value™ is €3.98, compared to a current price of €2.65 — trading 33.4% below its estimated fair value. The current Gross Margin % is 7.97%, which is 71% below median its 10-year median of 27.17 and 61% below the Transportation industry median of 20.42. Talgo's overall GF Score™ is 71/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Talgo (STU:XTG), the current Gross Margin % is 7.97% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Talgo (STU:XTG) Overvalued in 2026?
Based on GuruFocus' analysis, Talgo stock appears to be undervalued.
The current stock price of €2.65 is trading 33.4% below its estimated GF Value™ of €3.98.
GuruFocus considers Talgo to be Possible Value Trap.
Key valuation signals for STU:XTG:
Gross Margin %: 7.97% (71% below median its 10-year median of 27.17)
GF Value™: €3.98 vs. price of €2.65 (33.4% below fair value)
Industry Position: 61% below the Transportation median (#741 of 977)
No single metric tells the full story. See the STU:XTG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Talgo SA is a Spain-based company engaged in the design and manufacture of rolling stock. It operates in three business segments: Rolling stock, which accounts for the majority of revenue; Auxiliary machines & Others; and General. The Rolling stock segment is responsible for train production, as well as for the maintenance of trains that use the company's technology. The Auxiliary Machines & Others segment provides the manufacture and technical service of lathes, as well as the sale of related spare parts. The company's product range comprises high-speed rolling stock, intercity trains, and locomotives, among others. Talgo's geographical segments are Spain, the Rest of Europe, America, the Middle East & North Africa, the Commonwealth of Independent States, and APAC.
71GF Score
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