TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TALO - US87484T1088 - Common Stock
11.94 USD
+0.09 (+0.76%)
12 USD
+0.06 (+0.5%)
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.
TALO had a positive operating cash flow in the past year.
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 has a worse Return On Assets (-6.25%) than 76.56% of its industry peers.
TALO's Return On Equity of -14.96% is on the low side compared to the rest of the industry. TALO is outperformed by 76.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.00%, TALO is doing worse than 75.60% 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 20.87%.
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
Looking at the Operating Margin, with a value of 0.00%, TALO is doing worse than 77.03% of the companies in the same industry.
TALO's Operating Margin has declined in the last couple of years.
The Gross Margin of TALO (72.82%) is better than 82.78% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TALO is creating some value.
Compared to 1 year ago, TALO has more shares outstanding
TALO has more shares outstanding than it did 5 years ago.
TALO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that TALO is in the distress zone and has some risk of bankruptcy.
TALO has a Altman-Z score of 0.55. This is in the lower half of the industry: TALO underperforms 64.59% 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.
The Debt to FCF ratio of TALO (2.36) is better than 81.34% 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 43.06% of the companies in the same 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 | 0.55 |
ROIC/WACC0
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.27 indicates that TALO should not have too much problems paying its short term obligations.
TALO has a Current ratio (1.27) which 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.
Looking at the Quick ratio, with a value of 1.27, TALO is in the better half of the industry, outperforming 64.11% of the companies in the same industry.
| 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.
The Revenue has decreased by -0.02% in the past 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-540.97%
EPS Next 2Y-198.28%
EPS Next 3Y-95.36%
EPS Next 5Y-54.77%
Revenue Next Year-6.4%
Revenue Next 2Y-6.22%
Revenue Next 3Y-3.07%
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.
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
TALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TALO is cheaper than 95.22% 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 | 3.57 | ||
| EV/EBITDA | 2.41 |
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 | N/A |
11.94
+0.09 (+0.76%)
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 Cap2.03B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.64 (14.24%)
Short Float %7.88%
Short Ratio5.17
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)4.22%
PT rev (3m)3.61%
EPS NQ rev (1m)22.46%
EPS NQ rev (3m)18.5%
EPS NY rev (1m)10.48%
EPS NY rev (3m)-10.53%
Revenue NQ rev (1m)3.03%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)2.5%
Revenue NY rev (3m)3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.08 | ||
| P/FCF | 3.57 | ||
| P/OCF | 1.87 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 2.41 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.42
Fwd EYN/A
FCF(TTM)3.34
FCFY27.99%
OCF(TTM)6.37
OCFY53.38%
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 | 0.55 |
F-Score6
WACC9.6%
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-6.4%
Revenue Next 2Y-6.22%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.64%
EBIT growth 1Y-99.99%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year719.14%
EBIT Next 3Y94.28%
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.