TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TALO - US87484T1088 - Common Stock
11.63 USD
-0.34 (-2.84%)
11.63 USD
0 (0%)
Overall TALO gets a fundamental rating of 3 out of 10. We evaluated TALO against 208 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 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.
- Each year in the past 5 years TALO had a positive operating cash flow.
1.2 Ratios
- TALO's Return On Assets of -6.25% is on the low side compared to the rest of the industry. TALO is outperformed by 77.40% of its industry peers.
- With a Return On Equity value of -14.96%, TALO is not doing good in the industry: 76.44% of the companies in the same industry are doing better.
- TALO's Return On Invested Capital of 0.00% is on the low side compared to the rest of the industry. TALO is outperformed by 74.04% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TALO is significantly below the industry average of 21.83%.
- 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
- The Operating Margin of TALO (0.00%) is worse than 75.48% of its industry peers.
- In the last couple of years the Operating Margin of TALO has declined.
- With an excellent Gross Margin value of 72.82%, TALO belongs to the best of the industry, outperforming 82.69% 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.
- The number of shares outstanding for TALO has been increased compared to 5 years ago.
- TALO has a better debt/assets ratio than last year.
2.2 Solvency
- TALO has an Altman-Z score of 0.56. 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 0.56, TALO is doing worse than 63.94% 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 81.25% of the companies in the same industry.
- 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 | 0.56 |
ROIC/WACC0
WACC9.46%
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 in line with its industry peers.
- TALO has a Quick 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 Quick ratio of 1.27. This is in the better half of the industry: TALO outperforms 64.42% 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%.
- The Revenue has decreased by -0.02% in the past 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.
- The Revenue is expected to decrease by -1.64% on average over the next years.
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
- 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
- Based on the Enterprise Value to EBITDA ratio, TALO is valued cheaper than 96.63% of the companies in the same industry.
- 95.67% 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 | 3.48 | ||
| EV/EBITDA | 2.43 |
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
- No dividends for TALO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
11.63
-0.34 (-2.84%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners73.64%
Inst Owner Change0.3%
Ins Owners0.63%
Ins Owner Change0.13%
Market Cap1.98B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.9 (19.52%)
Short Float %8.55%
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)1.87%
PT rev (3m)5.55%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)13.18%
EPS NY rev (1m)0%
EPS NY rev (3m)7.41%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.06 | ||
| P/FCF | 3.48 | ||
| P/OCF | 1.82 | ||
| P/B | 0.83 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 2.43 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.42
Fwd EYN/A
FCF(TTM)3.34
FCFY28.73%
OCF(TTM)6.37
OCFY54.8%
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 | 0.56 |
F-Score6
WACC9.46%
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 Year724.42%
EBIT Next 3Y93.46%
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 -540.97% in the next year.