TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - NYSE:TALO - US87484T1088 - Common Stock
9.55 USD
-0.09 (-0.93%)
9.55 USD
0 (0%)
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. TALO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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
TALO's Return On Assets of -2.91% is on the low side compared to the rest of the industry. TALO is outperformed by 73.81% of its industry peers.
Looking at the Return On Equity, with a value of -6.83%, TALO is doing worse than 70.48% of the companies in the same industry.
With a Return On Invested Capital value of 0.34%, TALO is not doing good in the industry: 74.76% of the companies in the same industry are doing better.
TALO had an Average Return On Invested Capital over the past 3 years of 10.34%. This is significantly below the industry average of 21.76%.
The 3 year average ROIC (10.34%) for TALO is well above the current ROIC(0.34%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.91% | ||
| ROE | -6.83% | ||
| ROIC | 0.34% |
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 (1.17%) is worse than 73.33% of its industry peers.
In the last couple of years the Operating Margin of TALO has declined.
The Gross Margin of TALO (72.11%) is better than 83.81% of its industry peers.
TALO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.17% | ||
| PM (TTM) | N/A | ||
| GM | 72.11% |
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.
TALO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TALO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that TALO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TALO (0.52) is worse than 63.33% of its industry peers.
TALO has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
TALO's Debt to FCF ratio of 1.98 is amongst the best of the industry. TALO outperforms 82.86% of its industry peers.
TALO has a Debt/Equity ratio of 0.53. This is a neutral value indicating TALO is somewhat dependend on debt financing.
TALO has a Debt to Equity ratio (0.53) 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 | 0.53 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.03
WACC9.81%
2.3 Liquidity
A Current Ratio of 1.22 indicates that TALO should not have too much problems paying its short term obligations.
The Current ratio of TALO (1.22) is comparable to the rest of the industry.
TALO has a Quick Ratio of 1.22. This is a normal value and indicates that TALO is financially healthy and should not expect problems in meeting its short term obligations.
TALO's Quick ratio of 1.22 is fine compared to the rest of the industry. TALO outperforms 63.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
TALO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -775.00%.
The Revenue has grown by 10.59% in the past year. This is quite good.
Measured over the past years, TALO shows a quite strong growth in Revenue. The Revenue has been growing by 16.79% on average per year.
EPS 1Y (TTM)-775%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1000%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-22.66%
3.2 Future
The Earnings Per Share is expected to grow by 8.04% on average over the next years. This is quite good.
Based on estimates for the next years, TALO will show a decrease in Revenue. The Revenue will decrease by -1.98% on average per year.
EPS Next Y-479.89%
EPS Next 2Y-233.5%
EPS Next 3Y-103.14%
EPS Next 5Y8.04%
Revenue Next Year-9.32%
Revenue Next 2Y-6.32%
Revenue Next 3Y-4.28%
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
Based on the Enterprise Value to EBITDA ratio, TALO is valued cheaper than 96.67% of the companies in the same industry.
96.19% 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 | 2.45 | ||
| EV/EBITDA | 2.04 |
4.3 Compensation for Growth
A cheap valuation may be justified as TALO's earnings are expected to decrease with -103.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-233.5%
EPS Next 3Y-103.14%
5. Dividend
5.1 Amount
TALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.55
-0.09 (-0.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change-7.06%
Ins Owners0.59%
Ins Owner Change0.02%
Market Cap1.67B
Analysts81.05
Price Target13.17 (37.91%)
Short Float %8.14%
Short Ratio4.31
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)85.63%
Min EPS beat(2)7.74%
Max EPS beat(2)163.52%
EPS beat(4)3
Avg EPS beat(4)119.53%
Min EPS beat(4)-124.09%
Max EPS beat(4)430.93%
EPS beat(8)4
Avg EPS beat(8)57.26%
EPS beat(12)4
Avg EPS beat(12)20.96%
EPS beat(16)6
Avg EPS beat(16)13.69%
Revenue beat(2)1
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-4.65%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)0.82%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)5
Avg Revenue beat(12)-0.06%
Revenue beat(16)9
Avg Revenue beat(16)5%
PT rev (1m)1.43%
PT rev (3m)2.45%
EPS NQ rev (1m)-5.4%
EPS NQ rev (3m)-182.36%
EPS NY rev (1m)-2.73%
EPS NY rev (3m)-9.5%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-9.87%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.86 | ||
| P/FCF | 2.45 | ||
| P/OCF | 1.39 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 2.04 |
EPS(TTM)-0.27
EYN/A
EPS(NY)-1.78
Fwd EYN/A
FCF(TTM)3.9
FCFY40.81%
OCF(TTM)6.85
OCFY71.74%
SpS11.06
BVpS14.42
TBVpS14.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.91% | ||
| ROE | -6.83% | ||
| ROCE | 0.43% | ||
| ROIC | 0.34% | ||
| ROICexc | 0.37% | ||
| ROICexgc | 0.37% | ||
| OM | 1.17% | ||
| PM (TTM) | N/A | ||
| GM | 72.11% | ||
| FCFM | 35.23% |
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
ROICexcg growth 3Y-52.56%
ROICexcg 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-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 42.21% | ||
| Cap/Sales | 26.7% | ||
| Interest Coverage | 0.18 | ||
| Cash Conversion | 96.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 0.52 |
F-Score7
WACC9.81%
ROIC/WACC0.03
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)-775%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1000%
EPS Next Y-479.89%
EPS Next 2Y-233.5%
EPS Next 3Y-103.14%
EPS Next 5Y8.04%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-22.66%
Revenue Next Year-9.32%
Revenue Next 2Y-6.32%
Revenue Next 3Y-4.28%
Revenue Next 5Y-1.98%
EBIT growth 1Y-90.92%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year659.08%
EBIT Next 3Y88.76%
EBIT Next 5Y48.01%
FCF growth 1Y456.2%
FCF growth 3Y56.61%
FCF growth 5YN/A
OCF growth 1Y89.23%
OCF growth 3Y32.76%
OCF growth 5Y19.58%