TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - NYSE:TALO - US87484T1088 - Common Stock
9.76 USD
-0.16 (-1.61%)
9.78 USD
+0.02 (+0.2%)
We assign a fundamental rating of 3 out of 10 to TALO. TALO was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. TALO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TALO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TALO has reported negative net income.
In the past year TALO had a positive cash flow from operations.
In multiple years TALO reported negative net income over the last 5 years.
Each year in the past 5 years TALO had a positive operating cash flow.
1.2 Ratios
TALO's Return On Assets of -2.91% is on the low side compared to the rest of the industry. TALO is outperformed by 74.16% of its industry peers.
With a Return On Equity value of -6.83%, TALO is not doing good in the industry: 70.81% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 0.34%, TALO is not doing good in the industry: 74.16% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for TALO is significantly below the industry average of 21.70%.
The last Return On Invested Capital (0.34%) for TALO is well below the 3 year average (10.34%), which needs to be investigated, but indicates that TALO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.91% | ||
| ROE | -6.83% | ||
| ROIC | 0.34% |
ROA(3y)5.05%
ROA(5y)-1.58%
ROE(3y)12.9%
ROE(5y)-7.12%
ROIC(3y)10.34%
ROIC(5y)N/A
1.3 Margins
TALO has a worse Operating Margin (1.17%) than 72.73% of its industry peers.
In the last couple of years the Operating Margin of TALO has declined.
TALO's Gross Margin of 72.11% is amongst the best of the industry. TALO outperforms 83.73% of its industry peers.
TALO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.17% | ||
| PM (TTM) | N/A | ||
| GM | 72.11% |
OM growth 3Y-44.48%
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.53%
GM growth 5Y-0.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TALO is still creating some value.
Compared to 1 year ago, TALO has more shares outstanding
TALO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TALO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that TALO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TALO (0.52) is worse than 63.64% of its industry peers.
TALO has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
TALO's Debt to FCF ratio of 1.98 is amongst the best of the industry. TALO outperforms 82.78% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that TALO is somewhat dependend on debt financing.
TALO has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
Although TALO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.04
WACC9.63%
2.3 Liquidity
TALO has a Current Ratio of 1.22. This is a normal value and indicates that TALO is financially healthy and should not expect problems in meeting its short term obligations.
TALO has a Current ratio (1.22) which is in line with its industry peers.
TALO has a Quick Ratio of 1.22. This is a normal value and indicates that TALO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.22, TALO is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
TALO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -775.00%.
The Revenue has grown by 10.59% in the past year. This is quite good.
Measured over the past years, TALO shows a quite strong growth in Revenue. The Revenue has been growing by 16.79% on average per year.
EPS 1Y (TTM)-775%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1000%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-22.66%
3.2 Future
Based on estimates for the next years, TALO will show a small growth in Earnings Per Share. The EPS will grow by 2.59% on average per year.
TALO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.98% yearly.
EPS Next Y-588.34%
EPS Next 2Y-223.75%
EPS Next 3Y-100%
EPS Next 5Y2.59%
Revenue Next Year-8.78%
Revenue Next 2Y-6.72%
Revenue Next 3Y-4.37%
Revenue Next 5Y-1.98%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TALO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TALO. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TALO indicates a rather cheap valuation: TALO is cheaper than 96.17% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TALO is valued cheaply inside the industry as 96.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.5 | ||
| EV/EBITDA | 2.06 |
4.3 Compensation for Growth
TALO's earnings are expected to decrease with -100.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-223.75%
EPS Next 3Y-100%
5. Dividend
5.1 Amount
TALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.76
-0.16 (-1.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.67%
Inst Owner Change0.38%
Ins Owners0.59%
Ins Owner Change0.13%
Market Cap1.70B
Revenue(TTM)1.93B
Net Income(TTM)-172140000
Analysts80
Price Target13.17 (34.94%)
Short Float %8.73%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)85.63%
Min EPS beat(2)7.74%
Max EPS beat(2)163.52%
EPS beat(4)3
Avg EPS beat(4)119.53%
Min EPS beat(4)-124.09%
Max EPS beat(4)430.93%
EPS beat(8)4
Avg EPS beat(8)57.26%
EPS beat(12)4
Avg EPS beat(12)20.96%
EPS beat(16)6
Avg EPS beat(16)13.69%
Revenue beat(2)1
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-4.65%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)0.82%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)5
Avg Revenue beat(12)-0.06%
Revenue beat(16)9
Avg Revenue beat(16)5%
PT rev (1m)0%
PT rev (3m)0.71%
EPS NQ rev (1m)8.18%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-21.94%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.88 | ||
| P/FCF | 2.5 | ||
| P/OCF | 1.42 | ||
| P/B | 0.68 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 2.06 |
EPS(TTM)-0.27
EYN/A
EPS(NY)-1.68
Fwd EYN/A
FCF(TTM)3.9
FCFY39.94%
OCF(TTM)6.85
OCFY70.2%
SpS11.06
BVpS14.42
TBVpS14.42
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.91% | ||
| ROE | -6.83% | ||
| ROCE | 0.43% | ||
| ROIC | 0.34% | ||
| ROICexc | 0.37% | ||
| ROICexgc | 0.37% | ||
| OM | 1.17% | ||
| PM (TTM) | N/A | ||
| GM | 72.11% | ||
| FCFM | 35.23% |
ROA(3y)5.05%
ROA(5y)-1.58%
ROE(3y)12.9%
ROE(5y)-7.12%
ROIC(3y)10.34%
ROIC(5y)N/A
ROICexc(3y)10.62%
ROICexc(5y)N/A
ROICexgc(3y)10.62%
ROICexgc(5y)N/A
ROCE(3y)13.08%
ROCE(5y)N/A
ROICexgc growth 3Y-52.56%
ROICexgc growth 5Y-27.88%
ROICexc growth 3Y-52.56%
ROICexc growth 5Y-27.88%
OM growth 3Y-44.48%
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.53%
GM growth 5Y-0.5%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 42.21% | ||
| Cap/Sales | 26.7% | ||
| Interest Coverage | 0.18 | ||
| Cash Conversion | 96.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 0.52 |
F-Score7
WACC9.63%
ROIC/WACC0.04
Cap/Depr(3y)63.27%
Cap/Depr(5y)68.41%
Cap/Sales(3y)28.24%
Cap/Sales(5y)34.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-775%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1000%
EPS Next Y-588.34%
EPS Next 2Y-223.75%
EPS Next 3Y-100%
EPS Next 5Y2.59%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-22.66%
Revenue Next Year-8.78%
Revenue Next 2Y-6.72%
Revenue Next 3Y-4.37%
Revenue Next 5Y-1.98%
EBIT growth 1Y-90.92%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year668.98%
EBIT Next 3Y88.02%
EBIT Next 5Y48.01%
FCF growth 1Y456.2%
FCF growth 3Y56.61%
FCF growth 5YN/A
OCF growth 1Y89.23%
OCF growth 3Y32.76%
OCF growth 5Y19.58%
TALOS ENERGY INC / TALO FAQ
What is the fundamental rating for TALO stock?
ChartMill assigns a fundamental rating of 3 / 10 to TALO.
Can you provide the valuation status for TALOS ENERGY INC?
ChartMill assigns a valuation rating of 2 / 10 to TALOS ENERGY INC (TALO). This can be considered as Overvalued.
Can you provide the profitability details for TALOS ENERGY INC?
TALOS ENERGY INC (TALO) has a profitability rating of 3 / 10.
Can you provide the financial health for TALO stock?
The financial health rating of TALOS ENERGY INC (TALO) is 5 / 10.