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 3 out of 10 in our fundamental rating. TALO was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of TALO have multiple concerns. TALO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TALO was profitable.
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.
Each year in the past 5 years TALO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.23%, TALO is doing worse than 72.43% of the companies in the same industry.
With a Return On Equity value of -2.77%, TALO is not doing good in the industry: 69.63% of the companies in the same industry are doing better.
TALO has a Return On Invested Capital of 1.65%. This is in the lower half of the industry: TALO underperforms 72.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TALO is significantly below the industry average of 25.70%.
The last Return On Invested Capital (1.65%) 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 | -1.23% | ||
| ROE | -2.77% | ||
| ROIC | 1.65% |
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
TALO's Operating Margin of 5.77% is on the low side compared to the rest of the industry. TALO is outperformed by 67.29% of its industry peers.
TALO's Operating Margin has declined in the last couple of years.
TALO's Gross Margin of 71.25% is amongst the best of the industry. TALO outperforms 80.84% of its industry peers.
TALO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.77% | ||
| PM (TTM) | N/A | ||
| GM | 71.25% |
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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TALO has been increased compared to 1 year ago.
Compared to 5 years ago, TALO has more shares outstanding
The debt/assets ratio for TALO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that TALO is in the distress zone and has some risk of bankruptcy.
TALO has a Altman-Z score of 0.52. This is in the lower half of the industry: TALO underperforms 63.55% of its industry peers.
TALO has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as TALO would need 2.98 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.98, TALO belongs to the best of the industry, outperforming 80.37% of the companies in the same industry.
TALO has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
TALO's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. TALO outperforms 48.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.14
WACC11.71%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TALO may have some problems paying its short term obligations.
TALO has a Current ratio of 0.91. This is in the lower half of the industry: TALO underperforms 62.15% of its industry peers.
A Quick Ratio of 0.91 indicates that TALO may have some problems paying its short term obligations.
TALO has a Quick ratio of 0.91. This is comparable to the rest of the industry: TALO outperforms 49.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
TALO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.00%.
The Revenue has grown by 35.37% in the past year. This is a very strong growth!
The Revenue has been growing by 16.79% on average over the past years. This is quite good.
EPS 1Y (TTM)-70%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%146.15%
Revenue 1Y (TTM)35.37%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%19.34%
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 -53.79% yearly.
TALO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.98% yearly.
EPS Next Y-420.98%
EPS Next 2Y-171.12%
EPS Next 3Y-93.94%
EPS Next 5Y-53.79%
Revenue Next Year-9.47%
Revenue Next 2Y-6.11%
Revenue Next 3Y-4.75%
Revenue Next 5Y-1.98%
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
Based on the Price/Earnings ratio of 270.00, the valuation of TALO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TALO indicates a slightly more expensive valuation: TALO is more expensive than 71.03% of the companies listed in the same industry.
TALO is valuated expensively when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for TALO. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 270 | ||
| 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 93.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TALO is valued cheaper than 93.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.19 | ||
| EV/EBITDA | 2.09 |
4.3 Compensation for Growth
TALO's earnings are expected to decrease with -93.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-171.12%
EPS Next 3Y-93.94%
5. Dividend
5.1 Amount
No dividends for TALO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.1
+0.09 (+1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69.52%
Inst Owner Change-0.6%
Ins Owners0.56%
Ins Owner Change1.38%
Market Cap1.45B
Analysts81.11
Price Target12.95 (59.88%)
Short Float %11.14%
Short Ratio6.57
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)153.42%
Min EPS beat(2)-124.09%
Max EPS beat(2)430.93%
EPS beat(4)2
Avg EPS beat(4)101.94%
Min EPS beat(4)-124.09%
Max EPS beat(4)430.93%
EPS beat(8)2
Avg EPS beat(8)17.29%
EPS beat(12)3
Avg EPS beat(12)-15.72%
EPS beat(16)4
Avg EPS beat(16)-283.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)-0.17%
Revenue beat(4)2
Avg Revenue beat(4)1.12%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)4.03%
Revenue beat(8)2
Avg Revenue beat(8)-2.1%
Revenue beat(12)6
Avg Revenue beat(12)4.43%
Revenue beat(16)10
Avg Revenue beat(16)6.7%
PT rev (1m)-20.62%
PT rev (3m)-17.8%
EPS NQ rev (1m)-4.34%
EPS NQ rev (3m)-48.16%
EPS NY rev (1m)-2.23%
EPS NY rev (3m)-159.9%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)-3.74%
Revenue NY rev (3m)-5.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 270 | ||
| Fwd PE | N/A | ||
| P/S | 0.73 | ||
| P/FCF | 3.19 | ||
| P/OCF | 1.5 | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 2.09 |
EPS(TTM)0.03
EY0.37%
EPS(NY)-1.18
Fwd EYN/A
FCF(TTM)2.54
FCFY31.39%
OCF(TTM)5.39
OCFY66.59%
SpS11.06
BVpS15.46
TBVpS15.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.23% | ||
| ROE | -2.77% | ||
| ROCE | 2.08% | ||
| ROIC | 1.65% | ||
| ROICexc | 1.69% | ||
| ROICexgc | 1.69% | ||
| OM | 5.77% | ||
| PM (TTM) | N/A | ||
| GM | 71.25% | ||
| FCFM | 22.99% |
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
ROICexcg growth 3Y-52.56%
ROICexcg 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-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 44.6% | ||
| Cap/Sales | 25.79% | ||
| Interest Coverage | 0.87 | ||
| Cash Conversion | 76.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.52 |
F-Score5
WACC11.71%
ROIC/WACC0.14
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)-70%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%146.15%
EPS Next Y-420.98%
EPS Next 2Y-171.12%
EPS Next 3Y-93.94%
EPS Next 5Y-53.79%
Revenue 1Y (TTM)35.37%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%19.34%
Revenue Next Year-9.47%
Revenue Next 2Y-6.11%
Revenue Next 3Y-4.75%
Revenue Next 5Y-1.98%
EBIT growth 1Y-53.15%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year655.12%
EBIT Next 3Y90.66%
EBIT Next 5Y48.01%
FCF growth 1Y928.93%
FCF growth 3Y56.61%
FCF growth 5YN/A
OCF growth 1Y85.45%
OCF growth 3Y32.76%
OCF growth 5Y19.58%