TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - NYSE:TALO - US87484T1088 - Common Stock
10.38 USD
+0.6 (+6.13%)
10.32 USD
-0.06 (-0.58%)
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 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.
TALO had a positive operating cash flow in the past year.
In multiple years TALO reported negative net income over the last 5 years.
In the past 5 years TALO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.91%, TALO is doing worse than 73.81% of the companies in the same industry.
TALO's Return On Equity of -6.83% is on the low side compared to the rest of the industry. TALO is outperformed by 70.48% of its industry peers.
With a Return On Invested Capital value of 0.34%, TALO is not doing good in the industry: 74.29% 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 21.78%.
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.
TALO's Operating Margin has declined in the last couple of years.
TALO's Gross Margin of 72.11% is amongst the best of the industry. TALO outperforms 83.81% 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 | 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.
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 0.54. 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 0.54 is on the low side compared to the rest of the industry. TALO is outperformed by 61.90% 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 has a better Debt to FCF ratio (1.98) than 83.33% 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 of 0.53. This is comparable to the rest of the industry: TALO outperforms 46.67% of 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 | 0.54 |
ROIC/WACC0.04
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.22 indicates that TALO should not have too much problems paying its short term obligations.
TALO has a Current ratio of 1.22. This is comparable to the rest of the industry: TALO outperforms 54.76% of its industry peers.
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 62.86% 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 -28.00%.
TALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.37%.
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)-28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
Revenue 1Y (TTM)35.37%
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
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 cheaply inside the industry as 96.19% of the companies are valued more expensively.
96.67% 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 | 2.66 | ||
| EV/EBITDA | 2.15 |
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 |
10.38
+0.6 (+6.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.67%
Inst Owner Change0.13%
Ins Owners0.59%
Ins Owner Change0.13%
Market Cap1.81B
Revenue(TTM)1.97B
Net Income(TTM)-172.14M
Analysts80
Price Target13.09 (26.11%)
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)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)-0.59%
PT rev (3m)0.83%
EPS NQ rev (1m)-2.46%
EPS NQ rev (3m)-1.94%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-26.84%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.73%
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 | 0.94 | ||
| P/FCF | 2.66 | ||
| P/OCF | 1.51 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 2.15 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.84
Fwd EYN/A
FCF(TTM)3.9
FCFY37.55%
OCF(TTM)6.85
OCFY66.01%
SpS11.06
BVpS14.42
TBVpS14.42
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
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-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 | 0.54 |
F-Score7
WACC9.58%
ROIC/WACC0.04
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)35.37%
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-90.92%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year668.98%
EBIT Next 3Y88.02%
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%
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.