TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TALO - US87484T1088 - Common Stock
11.46 USD
+0.13 (+1.15%)
11.46 USD
0 (0%)
Overall TALO gets a fundamental rating of 3 out of 10. We evaluated TALO against 209 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 does not seem to be growing, but still is valued expensively.
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.
The reported net income has been mixed in the past 5 years: TALO reported negative net income in multiple years.
In the past 5 years TALO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TALO (-6.25%) is worse than 76.08% of its industry peers.
TALO has a worse Return On Equity (-14.96%) than 76.08% of its industry peers.
TALO has a worse Return On Invested Capital (0.00%) than 75.60% of its industry peers.
TALO had an Average Return On Invested Capital over the past 3 years of 10.34%. This is significantly below the industry average of 21.49%.
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 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
TALO has a Operating Margin of 0.00%. This is in the lower half of the industry: TALO underperforms 77.03% of its industry peers.
In the last couple of years the Operating Margin of TALO has declined.
TALO's Gross Margin of 72.82% is amongst the best of the industry. TALO outperforms 83.25% 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 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TALO is still creating some value.
The number of shares outstanding for TALO has been increased compared to 1 year ago.
The number of shares outstanding for TALO has been increased compared to 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 0.54, we must say that TALO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.54, TALO is doing worse than 64.59% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.36, TALO belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that TALO is somewhat dependend on debt financing.
TALO's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. TALO outperforms 42.58% of its industry peers.
Even though the debt/equity ratio score it not favorable for TALO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 0.54 |
ROIC/WACC0
WACC9.64%
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.
TALO has a Current ratio (1.27) which is comparable to the rest of the industry.
A Quick Ratio of 1.27 indicates that TALO should not have too much problems paying its short term obligations.
TALO has a better Quick ratio (1.27) than 64.11% of its industry peers.
| 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.
Looking at the last year, TALO shows a decrease in Revenue. The Revenue has decreased by -0.02% in the last 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 very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -54.77% yearly.
TALO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.64% yearly.
EPS Next Y-615.98%
EPS Next 2Y-238.78%
EPS Next 3Y-113.69%
EPS Next 5Y-54.77%
Revenue Next Year-8.68%
Revenue Next 2Y-6.64%
Revenue Next 3Y-4.5%
Revenue Next 5Y-1.64%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TALO is valued cheaper than 94.74% of the companies in the same industry.
95.22% 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 | 3.43 | ||
| EV/EBITDA | 2.36 |
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
No dividends for TALO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.46
+0.13 (+1.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.67%
Inst Owner Change-6%
Ins Owners0.59%
Ins Owner Change0.13%
Market Cap1.95B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.18 (15.01%)
Short Float %8.93%
Short Ratio6.06
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)0.06%
PT rev (3m)0.77%
EPS NQ rev (1m)16.97%
EPS NQ rev (3m)13.94%
EPS NY rev (1m)-4.02%
EPS NY rev (3m)-23.47%
Revenue NQ rev (1m)2.12%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.04 | ||
| P/FCF | 3.43 | ||
| P/OCF | 1.8 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 2.36 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.84
Fwd EYN/A
FCF(TTM)3.34
FCFY29.16%
OCF(TTM)6.37
OCFY55.61%
SpS11.02
BVpS14
TBVpS14
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 | 0.54 |
F-Score6
WACC9.64%
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 5Y-54.77%
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-1.64%
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 5Y48.61%
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.
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.