TALOS ENERGY INC (TALO) Stock Fundamental Analysis

NYSE:TALO • US87484T1088

11.33 USD
-1.8 (-13.71%)
At close: Feb 25, 2026
11.27 USD
-0.06 (-0.53%)
After Hours: 2/25/2026, 4:15:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Overall TALO gets a fundamental rating of 3 out of 10. We evaluated TALO against 206 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of TALO is average, but there are quite some concerns on its profitability. TALO has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year TALO has reported negative net income.
  • TALO had a positive operating cash flow in the past year.
  • In multiple years TALO reported negative net income over the last 5 years.
  • TALO had a positive operating cash flow in 4 of the past 5 years.
TALO Yearly Net Income VS EBIT VS OCF VS FCFTALO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M

1.2 Ratios

  • TALO has a Return On Assets of -6.25%. This is in the lower half of the industry: TALO underperforms 77.67% of its industry peers.
  • TALO has a Return On Equity of -14.96%. This is in the lower half of the industry: TALO underperforms 77.18% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 0.00%, TALO is doing worse than 73.79% of the companies in the same industry.
  • TALO had an Average Return On Invested Capital over the past 3 years of 10.34%. This is significantly below the industry average of 21.96%.
  • The last Return On Invested Capital (0.00%) 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 RankSector Rank
ROA -6.25%
ROE -14.96%
ROIC 0%
ROA(3y)5.05%
ROA(5y)-1.58%
ROE(3y)12.9%
ROE(5y)-7.12%
ROIC(3y)10.34%
ROIC(5y)N/A
TALO Yearly ROA, ROE, ROICTALO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -1K -2K

1.3 Margins

  • Looking at the Operating Margin, with a value of 0.00%, TALO is doing worse than 75.24% of the companies in the same industry.
  • TALO's Operating Margin has declined in the last couple of years.
  • TALO has a better Gross Margin (72.82%) than 83.01% of its industry peers.
  • In the last couple of years the Gross Margin of TALO has remained more or less at the same level.
Industry RankSector Rank
OM 0%
PM (TTM) N/A
GM 72.82%
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%
TALO Yearly Profit, Operating, Gross MarginsTALO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • TALO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TALO Yearly Shares OutstandingTALO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
TALO Yearly Total Debt VS Total AssetsTALO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

  • TALO has an Altman-Z score of 0.59. This is a bad value and indicates that TALO is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 0.59, TALO is not doing good in the industry: 62.14% of the companies in the same industry are doing better.
  • The Debt to FCF ratio of TALO is 2.36, which is a good value as it means it would take TALO, 2.36 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 2.36, TALO belongs to the best of the industry, outperforming 82.04% of the companies in the same industry.
  • A Debt/Equity ratio of 0.55 indicates that TALO is somewhat dependend on debt financing.
  • The Debt to Equity ratio of TALO (0.55) 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 RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.36
Altman-Z 0.59
ROIC/WACC0
WACC8.49%
TALO Yearly LT Debt VS Equity VS FCFTALO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • TALO has a Current Ratio of 1.27. 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 Current ratio, with a value of 1.27, TALO is in line with its industry, outperforming 56.80% of the companies in the same industry.
  • A Quick Ratio of 1.27 indicates that TALO should not have too much problems paying its short term obligations.
  • TALO's Quick ratio of 1.27 is fine compared to the rest of the industry. TALO outperforms 63.59% of its industry peers.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 1.27
TALO Yearly Current Assets VS Current LiabilitesTALO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

0

3. Growth

3.1 Past

  • The earnings per share for TALO have decreased strongly by -425.00% in the last year.
EPS 1Y (TTM)-425%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-650%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-19.16%

3.2 Future

  • TALO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.01% yearly.
  • Based on estimates for the next years, TALO will show a decrease in Revenue. The Revenue will decrease by -0.12% on average per year.
EPS Next Y-113.82%
EPS Next 2Y-30.7%
EPS Next 3Y-3.01%
EPS Next 5YN/A
Revenue Next Year-8.76%
Revenue Next 2Y-2.62%
Revenue Next 3Y-0.3%
Revenue Next 5Y-0.12%

3.3 Evolution

TALO Yearly Revenue VS EstimatesTALO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B
TALO Yearly EPS VS EstimatesTALO Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • TALO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Also next year TALO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
TALO Price Earnings VS Forward Price EarningsTALO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

4.2 Price Multiples

  • 97.09% of the companies in the same industry are more expensive than TALO, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TALO indicates a rather cheap valuation: TALO is cheaper than 96.12% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.39
EV/EBITDA 2.59
TALO Per share dataTALO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

  • TALO's earnings are expected to decrease with -3.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.7%
EPS Next 3Y-3.01%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for TALO!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

TALOS ENERGY INC

NYSE:TALO (2/25/2026, 4:15:00 PM)

After market: 11.27 -0.06 (-0.53%)

11.33

-1.8 (-13.71%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-24
Earnings (Next)05-04
Inst Owners73.64%
Inst Owner Change-1.39%
Ins Owners0.63%
Ins Owner Change0.13%
Market Cap1.93B
Revenue(TTM)N/A
Net Income(TTM)-356.22M
Analysts80
Price Target14.54 (28.33%)
Short Float %9.14%
Short Ratio5.81
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)29.52%
Min EPS beat(2)7.74%
Max EPS beat(2)51.29%
EPS beat(4)4
Avg EPS beat(4)163.37%
Min EPS beat(4)7.74%
Max EPS beat(4)430.93%
EPS beat(8)5
Avg EPS beat(8)65.57%
EPS beat(12)5
Avg EPS beat(12)25.46%
EPS beat(16)7
Avg EPS beat(16)28.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-4.65%
Max Revenue beat(2)3.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)3.07%
Revenue beat(8)4
Avg Revenue beat(8)0.07%
Revenue beat(12)5
Avg Revenue beat(12)-1.43%
Revenue beat(16)9
Avg Revenue beat(16)4.77%
PT rev (1m)3.85%
PT rev (3m)10.26%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)9.76%
EPS NY rev (1m)-5.77%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)1.68%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.03
P/FCF 3.39
P/OCF 1.78
P/B 0.81
P/tB 0.81
EV/EBITDA 2.59
EPS(TTM)-0.84
EYN/A
EPS(NY)-1.8
Fwd EYN/A
FCF(TTM)3.34
FCFY29.49%
OCF(TTM)6.37
OCFY56.25%
SpS11.02
BVpS14
TBVpS14
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -6.25%
ROE -14.96%
ROCE 0%
ROIC 0%
ROICexc 0%
ROICexgc 0%
OM 0%
PM (TTM) N/A
GM 72.82%
FCFM 30.33%
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-Score6
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.36
Debt/EBITDA 1.09
Cap/Depr 42.53%
Cap/Sales 27.51%
Interest Coverage 0
Cash Conversion 89.4%
Profit Quality N/A
Current Ratio 1.27
Quick Ratio 1.27
Altman-Z 0.59
F-Score6
WACC8.49%
ROIC/WACC0
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)-425%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-650%
EPS Next Y-113.82%
EPS Next 2Y-30.7%
EPS Next 3Y-3.01%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-19.16%
Revenue Next Year-8.76%
Revenue Next 2Y-2.62%
Revenue Next 3Y-0.3%
Revenue Next 5Y-0.12%
EBIT growth 1Y-99.99%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year719.8%
EBIT Next 3Y91.08%
EBIT Next 5Y48.61%
FCF growth 1Y1326.84%
FCF growth 3Y56.61%
FCF growth 5YN/A
OCF growth 1Y110.94%
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.


What is the valuation status of TALOS ENERGY INC (TALO) stock?

ChartMill assigns a valuation rating of 2 / 10 to TALOS ENERGY INC (TALO). This can be considered as Overvalued.


How profitable is TALOS ENERGY INC (TALO) stock?

TALOS ENERGY INC (TALO) has a profitability rating of 3 / 10.


What is the earnings growth outlook for TALOS ENERGY INC?

The Earnings per Share (EPS) of TALOS ENERGY INC (TALO) is expected to decline by -113.82% in the next year.