TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TALO - US87484T1088 - Common Stock
10.93 USD
+0.08 (+0.74%)
10.93 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TALO. TALO was compared to 210 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 is valued expensive and it does not seem to be growing.
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.
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 75.83% of its industry peers.
Looking at the Return On Equity, with a value of -14.96%, TALO is doing worse than 75.83% of the companies in the same industry.
The Return On Invested Capital of TALO (0.00%) is worse than 74.41% 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 21.09%.
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 worse Operating Margin (0.00%) than 75.83% of its industry peers.
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 82.94% of the companies in the same industry.
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
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
TALO has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 0.53, TALO is doing worse than 63.51% of the companies in the same industry.
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.
TALO has a Debt to FCF ratio of 2.36. This is amongst the best in the industry. TALO outperforms 81.52% 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 comparable to the rest of the industry.
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 | 0.53 |
ROIC/WACC0
WACC9.67%
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 58.29% 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 has a better Quick ratio (1.27) than 64.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
TALO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.00%.
Looking at the last year, TALO shows a decrease in Revenue. The Revenue has decreased by -0.02% in the last year.
TALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.79% yearly.
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
Based on estimates for the next years, TALO will show a very negative growth in Earnings Per Share. The EPS will decrease by -54.77% on average per year.
TALO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.64% yearly.
EPS Next Y-540.97%
EPS Next 2Y-198.28%
EPS Next 3Y-95.36%
EPS Next 5Y-54.77%
Revenue Next Year-6.59%
Revenue Next 2Y-6.3%
Revenue Next 3Y-3.16%
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.
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
Based on the Enterprise Value to EBITDA ratio, TALO is valued cheaply inside the industry as 95.26% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TALO is valued cheaper than 95.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.27 | ||
| EV/EBITDA | 2.28 |
4.3 Compensation for Growth
TALO's earnings are expected to decrease with -95.36% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-198.28%
EPS Next 3Y-95.36%
5. Dividend
5.1 Amount
TALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.93
+0.08 (+0.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.59%
Inst Owner Change-6%
Ins Owners0.63%
Ins Owner Change0.13%
Market Cap1.86B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.9 (27.17%)
Short Float %8.11%
Short Ratio5.3
Dividend
| Industry Rank | Sector 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)6.17%
PT rev (3m)5.55%
EPS NQ rev (1m)3.73%
EPS NQ rev (3m)14.39%
EPS NY rev (1m)10.48%
EPS NY rev (3m)-10.53%
Revenue NQ rev (1m)0.81%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)2.28%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.99 | ||
| P/FCF | 3.27 | ||
| P/OCF | 1.71 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 2.28 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.42
Fwd EYN/A
FCF(TTM)3.34
FCFY30.57%
OCF(TTM)6.37
OCFY58.31%
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 | 0.53 |
F-Score6
WACC9.67%
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-540.97%
EPS Next 2Y-198.28%
EPS Next 3Y-95.36%
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-6.59%
Revenue Next 2Y-6.3%
Revenue Next 3Y-3.16%
Revenue Next 5Y-1.64%
EBIT growth 1Y-99.99%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year719.14%
EBIT Next 3Y94.28%
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.