TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TALO - US87484T1088 - Common Stock
11.09 USD
+0.19 (+1.74%)
11.09 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TALO. TALO was compared to 209 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 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.
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.
Each year in the past 5 years TALO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -6.25%, TALO is not doing good in the industry: 77.03% of the companies in the same industry are doing better.
TALO's Return On Equity of -14.96% is on the low side compared to the rest of the industry. TALO is outperformed by 76.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.00%, TALO is doing worse than 74.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TALO is significantly below the industry average of 21.18%.
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 75.60% of its industry peers.
TALO's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 72.82%, TALO belongs to the best of the industry, outperforming 82.78% 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.
Compared to 1 year ago, TALO has an improved debt to assets ratio.
2.2 Solvency
TALO has an Altman-Z score of 0.52. 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 0.52 is on the low side compared to the rest of the industry. TALO is outperformed by 63.16% of its industry peers.
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.
TALO has a better Debt to FCF ratio (2.36) than 81.34% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that TALO is somewhat dependend on debt financing.
The Debt to Equity ratio of TALO (0.55) 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 | 0.52 |
ROIC/WACC0
WACC9.65%
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.
The Current ratio of TALO (1.27) is comparable to the rest of the industry.
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 better Quick ratio (1.27) than 64.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for TALO have decreased strongly by -28.00% in the last year.
Looking at the last year, TALO shows a decrease in Revenue. The Revenue has decreased by -0.02% in the last year.
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)-0.02%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-11.63%
3.2 Future
TALO is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -54.77% yearly.
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.
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 96.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TALO is valued cheaper than 95.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.32 | ||
| EV/EBITDA | 2.28 |
4.3 Compensation for Growth
A cheap valuation may be justified as TALO's earnings are expected to decrease with -95.36% in the coming years.
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% |
11.09
+0.19 (+1.74%)
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 Cap1.89B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.9 (25.34%)
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)5.48%
PT rev (3m)5.55%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)12.31%
EPS NY rev (1m)10.48%
EPS NY rev (3m)7.41%
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 | 1.01 | ||
| P/FCF | 3.32 | ||
| P/OCF | 1.74 | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 2.28 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.42
Fwd EYN/A
FCF(TTM)3.34
FCFY30.13%
OCF(TTM)6.37
OCFY57.47%
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 | 0.52 |
F-Score6
WACC9.65%
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.
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.