TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - NYSE:TALO - US87484T1088 - Common Stock
10.4 USD
-0.44 (-4.06%)
10.166 USD
-0.23 (-2.25%)
Overall TALO gets a fundamental rating of 3 out of 10. We evaluated TALO against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While TALO seems to be doing ok healthwise, there are quite some concerns on its profitability. TALO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TALO had negative earnings in the past year.
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 has a worse Return On Assets (-6.25%) than 76.67% of its industry peers.
The Return On Equity of TALO (-14.96%) is worse than 75.71% of its industry peers.
TALO has a worse Return On Invested Capital (0.00%) than 74.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TALO is significantly below the industry average of 21.71%.
The 3 year average ROIC (10.34%) for TALO is well above the current ROIC(0.00%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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
1.3 Margins
With a Operating Margin value of 0.00%, TALO is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of TALO has declined.
Looking at the Gross Margin, with a value of 72.82%, TALO belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.
TALO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
TALO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TALO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TALO has more shares outstanding
The debt/assets ratio for TALO has been reduced compared to a year ago.
2.2 Solvency
TALO has an Altman-Z score of 0.53. This is a bad value and indicates that TALO is not financially healthy and even has some risk of bankruptcy.
TALO's Altman-Z score of 0.53 is on the low side compared to the rest of the industry. TALO is outperformed by 62.86% of its industry peers.
TALO has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as TALO would need 2.36 years to pay back of all of its debts.
The Debt to FCF ratio of TALO (2.36) is better than 81.90% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that TALO is somewhat dependend on debt financing.
TALO has a Debt to Equity ratio (0.55) which is in line with its industry peers.
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 | 0.55 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 0.53 |
ROIC/WACC0
WACC9.78%
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.
With a Current ratio value of 1.27, TALO perfoms like the industry average, outperforming 56.19% 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.
Looking at the Quick ratio, with a value of 1.27, TALO is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for TALO have decreased strongly by -28.00% in the last year.
The Revenue has decreased by -0.02% in the past year.
The Revenue has been growing by 16.79% on average over the past years. This is quite good.
EPS 1Y (TTM)-28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-11.63%
3.2 Future
TALO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.59% yearly.
The Revenue is expected to decrease by -1.98% on average over the next years.
EPS Next Y-615.98%
EPS Next 2Y-238.78%
EPS Next 3Y-113.69%
EPS Next 5Y2.59%
Revenue Next Year-8.68%
Revenue Next 2Y-6.64%
Revenue Next 3Y-4.5%
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
The Price/Earnings Ratio is negative for TALO. In the last year negative earnings were reported.
Also next year TALO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
TALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TALO is cheaper than 95.24% of the companies in the same industry.
95.71% of the companies in the same industry are more expensive than TALO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.2 | ||
| EV/EBITDA | 2.31 |
4.3 Compensation for Growth
TALO's earnings are expected to decrease with -113.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-238.78%
EPS Next 3Y-113.69%
5. Dividend
5.1 Amount
TALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.4
-0.44 (-4.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.67%
Inst Owner Change-6.02%
Ins Owners0.59%
Ins Owner Change0.13%
Market Cap1.82B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.09 (25.87%)
Short Float %8.98%
Short Ratio5.68
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)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)-0.59%
PT rev (3m)0.83%
EPS NQ rev (1m)-6%
EPS NQ rev (3m)-47.36%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-26.84%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.97 | ||
| P/FCF | 3.2 | ||
| P/OCF | 1.68 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 2.31 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.84
Fwd EYN/A
FCF(TTM)3.25
FCFY31.27%
OCF(TTM)6.2
OCFY59.64%
SpS10.72
BVpS13.63
TBVpS13.63
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.53 |
F-Score6
WACC9.78%
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)-28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
EPS Next Y-615.98%
EPS Next 2Y-238.78%
EPS Next 3Y-113.69%
EPS Next 5Y2.59%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-11.63%
Revenue Next Year-8.68%
Revenue Next 2Y-6.64%
Revenue Next 3Y-4.5%
Revenue Next 5Y-1.98%
EBIT growth 1Y-99.99%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year668.98%
EBIT Next 3Y88.02%
EBIT Next 5Y48.01%
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.
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.