TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TALO - US87484T1088 - Common Stock
11.33 USD
-0.08 (-0.7%)
11.33 USD
0 (0%)
Taking everything into account, TALO scores 3 out of 10 in our fundamental rating. TALO was compared to 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
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.
TALO had a positive operating cash flow in each of the past 5 years.
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 76.19% of its industry peers.
TALO has a Return On Equity of -14.96%. This is in the lower half of the industry: TALO underperforms 76.19% of its industry peers.
TALO has a worse Return On Invested Capital (0.00%) than 75.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TALO is significantly below the industry average of 21.41%.
The last Return On Invested Capital (0.00%) for TALO is well below the 3 year average (10.34%), which needs to be investigated, but indicates that TALO had better years and this may not be a problem.
| 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 77.14% of its industry peers.
TALO's Operating Margin has declined in the last couple of years.
The Gross Margin of TALO (72.82%) is better than 83.33% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TALO is creating some value.
The number of shares outstanding for TALO has been increased compared to 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 0.54. 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 0.54, TALO is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
The Debt to FCF ratio of TALO is 2.36, which is a good value as it means it would take TALO, 2.36 years of fcf income to pay off all of its debts.
TALO has a Debt to FCF ratio of 2.36. This is amongst the best in the industry. TALO outperforms 81.90% of its industry peers.
TALO has a Debt/Equity ratio of 0.55. This is a neutral value indicating TALO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, TALO perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
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 | 0.55 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 0.54 |
ROIC/WACC0
WACC9.64%
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.
A Quick Ratio of 1.27 indicates that TALO should not have too much problems paying its short term obligations.
TALO has a Quick ratio of 1.27. This is in the better half of the industry: TALO outperforms 64.29% 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.
The Revenue has been growing by 16.79% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to decrease by -54.77% on average over the next years. This is quite bad
TALO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.64% yearly.
EPS Next Y-615.98%
EPS Next 2Y-238.78%
EPS Next 3Y-113.69%
EPS Next 5Y-54.77%
Revenue Next Year-8.68%
Revenue Next 2Y-6.64%
Revenue Next 3Y-4.5%
Revenue Next 5Y-1.64%
3.3 Evolution
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
Based on the Enterprise Value to EBITDA ratio, TALO is valued cheaper than 95.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TALO is valued cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.39 | ||
| EV/EBITDA | 2.34 |
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 |
11.33
-0.08 (-0.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.67%
Inst Owner Change-6%
Ins Owners0.59%
Ins Owner Change0.13%
Market Cap1.93B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.18 (16.33%)
Short Float %8.93%
Short Ratio6.06
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)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)0.06%
PT rev (3m)1.49%
EPS NQ rev (1m)16.7%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)-4.02%
EPS NY rev (3m)-26.84%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)1.2%
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 | 1.03 | ||
| P/FCF | 3.39 | ||
| P/OCF | 1.78 | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 2.34 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.84
Fwd EYN/A
FCF(TTM)3.34
FCFY29.49%
OCF(TTM)6.37
OCFY56.25%
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 | 0.54 |
F-Score6
WACC9.64%
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-615.98%
EPS Next 2Y-238.78%
EPS Next 3Y-113.69%
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-8.68%
Revenue Next 2Y-6.64%
Revenue Next 3Y-4.5%
Revenue Next 5Y-1.64%
EBIT growth 1Y-99.99%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year668.98%
EBIT Next 3Y88.02%
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.