TALOS ENERGY INC (TALO) Stock Fundamental Analysis
NYSE:TALO - New York Stock Exchange, Inc. - US87484T1088 - Common Stock - Currency: USD
Taking everything into account, TALO scores 2 out of 10 in our fundamental rating. TALO was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. TALO may be in some trouble as it scores bad on both profitability and health. TALO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TALO has reported negative net income.
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 1.16% is on the low side compared to the rest of the industry. TALO is outperformed by 70.44% of its industry peers.
TALO's Return On Equity of 2.63% is on the low side compared to the rest of the industry. TALO is outperformed by 67.98% of its industry peers.
With a Return On Invested Capital value of 2.66%, TALO is not doing good in the industry: 73.89% of the companies in the same industry are doing better.
TALO had an Average Return On Invested Capital over the past 3 years of 14.89%. This is significantly below the industry average of 28.74%.
The 3 year average ROIC (14.89%) for TALO is well above the current ROIC(2.66%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.63% | ||
| ROIC | 2.66% |
ROA(3y)3.25%
ROA(5y)-0.88%
ROE(3y)5.8%
ROE(5y)-5.48%
ROIC(3y)14.89%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of TALO (3.95%) is worse than 65.52% of its industry peers.
TALO's Profit Margin has declined in the last couple of years.
The Operating Margin of TALO (10.27%) is worse than 67.00% of its industry peers.
In the last couple of years the Operating Margin of TALO has declined.
TALO's Gross Margin of 70.04% is fine compared to the rest of the industry. TALO outperforms 76.85% of its industry peers.
TALO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.27% | ||
| PM (TTM) | 3.95% | ||
| GM | 70.04% |
OM growth 3YN/A
OM growth 5Y-12.26%
PM growth 3YN/A
PM growth 5Y-12.36%
GM growth 3Y8.65%
GM growth 5Y-2.6%
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.
Compared to 1 year ago, TALO has an improved debt to assets ratio.
2.2 Solvency
TALO has an Altman-Z score of 0.58. This is a bad value and indicates that TALO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.58, TALO is not doing good in the industry: 67.49% of the companies in the same industry are doing better.
The Debt to FCF ratio of TALO is 4.80, which is a neutral value as it means it would take TALO, 4.80 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.80, TALO is doing good in the industry, outperforming 60.59% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that TALO is somewhat dependend on debt financing.
TALO has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: TALO outperforms 43.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 4.8 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.25
WACC10.64%
2.3 Liquidity
A Current Ratio of 0.97 indicates that TALO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.97, TALO is doing worse than 64.04% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that TALO may have some problems paying its short term obligations.
TALO has a Quick ratio of 0.97. This is comparable to the rest of the industry: TALO outperforms 46.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for TALO have decreased strongly by -158.14% in the last year.
Measured over the past years, TALO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.25% on average per year.
Looking at the last year, TALO shows a very strong growth in Revenue. The Revenue has grown by 32.38%.
TALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.34% yearly.
EPS 1Y (TTM)-158.14%
EPS 3YN/A
EPS 5Y-20.25%
EPS Q2Q%-193.33%
Revenue 1Y (TTM)32.38%
Revenue growth 3Y36.29%
Revenue growth 5Y10.34%
Sales Q2Q%32.93%
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 -34.01% on average per year.
The Revenue is expected to grow by 4.75% on average over the next years.
EPS Next Y-254.85%
EPS Next 2Y-94.19%
EPS Next 3Y-70.98%
EPS Next 5Y-34.01%
Revenue Next Year35.37%
Revenue Next 2Y13.93%
Revenue Next 3Y8%
Revenue Next 5Y4.75%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
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
93.60% of the companies in the same industry are more expensive than TALO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TALO is valued cheaper than 84.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.28 | ||
| EV/EBITDA | 2.34 |
4.3 Compensation for Growth
TALO's earnings are expected to decrease with -70.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-94.19%
EPS Next 3Y-70.98%
5. Dividend
5.1 Amount
No dividends for TALO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.01
-0.36 (-3.84%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69.52%
Inst Owner Change-96.51%
Ins Owners0.56%
Ins Owner Change8.15%
Market Cap1.62B
Analysts81.11
Price Target16.47 (82.8%)
Short Float %9.59%
Short Ratio6.59
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)1
Avg EPS beat(2)-0.44%
Min EPS beat(2)-124.09%
Max EPS beat(2)123.22%
EPS beat(4)1
Avg EPS beat(4)-32.23%
Min EPS beat(4)-124.09%
Max EPS beat(4)123.22%
EPS beat(8)1
Avg EPS beat(8)-43.5%
EPS beat(12)3
Avg EPS beat(12)-16.92%
EPS beat(16)3
Avg EPS beat(16)-344.38%
Revenue beat(2)1
Avg Revenue beat(2)1.93%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)4.03%
Revenue beat(4)2
Avg Revenue beat(4)1.12%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)4.03%
Revenue beat(8)3
Avg Revenue beat(8)-1.67%
Revenue beat(12)7
Avg Revenue beat(12)6.69%
Revenue beat(16)10
Avg Revenue beat(16)6.09%
PT rev (1m)4.95%
PT rev (3m)-4.69%
EPS NQ rev (1m)77.28%
EPS NQ rev (3m)-102.29%
EPS NY rev (1m)-12.58%
EPS NY rev (3m)-145.14%
Revenue NQ rev (1m)-1.71%
Revenue NQ rev (3m)-8.25%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.87 | ||
| P/FCF | 5.28 | ||
| P/OCF | 2.05 | ||
| P/B | 0.58 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 2.34 |
EPS(TTM)-0.25
EYN/A
EPS(NY)-0.39
Fwd EYN/A
FCF(TTM)1.7
FCFY18.92%
OCF(TTM)4.39
OCFY48.69%
SpS10.41
BVpS15.66
TBVpS15.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.63% | ||
| ROCE | 3.36% | ||
| ROIC | 2.66% | ||
| ROICexc | 2.72% | ||
| ROICexgc | 2.72% | ||
| OM | 10.27% | ||
| PM (TTM) | 3.95% | ||
| GM | 70.04% | ||
| FCFM | 16.38% |
ROA(3y)3.25%
ROA(5y)-0.88%
ROE(3y)5.8%
ROE(5y)-5.48%
ROIC(3y)14.89%
ROIC(5y)N/A
ROICexc(3y)15.33%
ROICexc(5y)N/A
ROICexgc(3y)15.33%
ROICexgc(5y)N/A
ROCE(3y)18.85%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-17.4%
ROICexc growth 3YN/A
ROICexc growth 5Y-17.4%
OM growth 3YN/A
OM growth 5Y-12.26%
PM growth 3YN/A
PM growth 5Y-12.36%
GM growth 3Y8.65%
GM growth 5Y-2.6%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 4.8 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 46.33% | ||
| Cap/Sales | 25.77% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | 63.97% | ||
| Profit Quality | 414.56% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.58 |
F-Score5
WACC10.64%
ROIC/WACC0.25
Cap/Depr(3y)69.94%
Cap/Depr(5y)83.86%
Cap/Sales(3y)27.5%
Cap/Sales(5y)39.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-158.14%
EPS 3YN/A
EPS 5Y-20.25%
EPS Q2Q%-193.33%
EPS Next Y-254.85%
EPS Next 2Y-94.19%
EPS Next 3Y-70.98%
EPS Next 5Y-34.01%
Revenue 1Y (TTM)32.38%
Revenue growth 3Y36.29%
Revenue growth 5Y10.34%
Sales Q2Q%32.93%
Revenue Next Year35.37%
Revenue Next 2Y13.93%
Revenue Next 3Y8%
Revenue Next 5Y4.75%
EBIT growth 1Y-30.72%
EBIT growth 3YN/A
EBIT growth 5Y-3.19%
EBIT Next Year526.96%
EBIT Next 3Y80.32%
EBIT Next 5Y41.52%
FCF growth 1Y-17.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.14%
OCF growth 3Y19.8%
OCF growth 5Y14.53%