TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - NYSE:TALO - US87484T1088 - Common Stock
9.57 USD
+0.07 (+0.74%)
9.57 USD
0 (0%)
Taking everything into account, TALO scores 3 out of 10 in our fundamental rating. 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 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.
In multiple years TALO reported negative net income over the last 5 years.
Each year in the past 5 years TALO had a positive operating cash flow.
1.2 Ratios
TALO has a Return On Assets of -2.91%. This is in the lower half of the industry: TALO underperforms 74.16% of its industry peers.
TALO has a worse Return On Equity (-6.83%) than 70.81% of its industry peers.
TALO's Return On Invested Capital of 0.34% is on the low side compared to the rest of the industry. TALO is outperformed by 74.16% of its industry peers.
TALO had an Average Return On Invested Capital over the past 3 years of 10.34%. This is significantly below the industry average of 21.71%.
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 72.73% of its industry peers.
TALO's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 72.11%, TALO belongs to the best of the industry, outperforming 83.73% 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 | 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.
The number of shares outstanding for TALO has been increased compared to 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
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.
The Altman-Z score of TALO (0.52) is worse than 63.16% of its industry peers.
The Debt to FCF ratio of TALO is 1.98, which is an excellent value as it means it would take TALO, only 1.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.98, TALO belongs to the top of the industry, outperforming 82.78% of the companies in the same industry.
TALO has a Debt/Equity ratio of 0.53. This is a neutral value indicating TALO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, TALO perfoms like the industry average, outperforming 46.41% 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 | 0.53 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.04
WACC9.62%
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 55.02% 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 has a better Quick ratio (1.22) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for TALO have decreased strongly by -775.00% in the last year.
Looking at the last year, TALO shows a quite strong growth in Revenue. The Revenue has grown by 10.59% 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)-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
Based on estimates for the next years, TALO will show a small growth in Earnings Per Share. The EPS will grow by 2.59% on average per year.
The Revenue is expected to decrease by -1.98% on average over the next years.
EPS Next Y-588.34%
EPS Next 2Y-223.75%
EPS Next 3Y-100%
EPS Next 5Y2.59%
Revenue Next Year-8.78%
Revenue Next 2Y-6.72%
Revenue Next 3Y-4.37%
Revenue Next 5Y-1.98%
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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TALO. No positive earnings are expected for the next year.
| 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 96.17% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TALO indicates a rather cheap valuation: TALO is cheaper than 96.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.46 | ||
| EV/EBITDA | 2.03 |
4.3 Compensation for Growth
A cheap valuation may be justified as TALO's earnings are expected to decrease with -100.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-223.75%
EPS Next 3Y-100%
5. Dividend
5.1 Amount
TALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.57
+0.07 (+0.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.67%
Inst Owner Change0.38%
Ins Owners0.59%
Ins Owner Change0.13%
Market Cap1.67B
Revenue(TTM)1.93B
Net Income(TTM)-172140000
Analysts80
Price Target13.17 (37.62%)
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%
PT rev (3m)0.71%
EPS NQ rev (1m)8.18%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-21.94%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.87 | ||
| P/FCF | 2.46 | ||
| P/OCF | 1.4 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 2.03 |
EPS(TTM)-0.27
EYN/A
EPS(NY)-1.68
Fwd EYN/A
FCF(TTM)3.9
FCFY40.73%
OCF(TTM)6.85
OCFY71.59%
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 | 0.52 |
F-Score7
WACC9.62%
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)-775%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1000%
EPS Next Y-588.34%
EPS Next 2Y-223.75%
EPS Next 3Y-100%
EPS Next 5Y2.59%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-22.66%
Revenue Next Year-8.78%
Revenue Next 2Y-6.72%
Revenue Next 3Y-4.37%
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.