TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TALO - US87484T1088 - Common Stock
10.93 USD
+0.08 (+0.74%)
10.93 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TALO. TALO was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of TALO is average, but there are quite some concerns on its profitability. TALO is valued expensive and it does not seem to be growing.
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.
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
With a Return On Assets value of -6.25%, TALO is not doing good in the industry: 75.83% of the companies in the same industry are doing better.
The Return On Equity of TALO (-14.96%) is worse than 75.83% of its industry peers.
TALO has a worse Return On Invested Capital (0.00%) than 74.41% 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 21.09%.
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
TALO's Operating Margin of 0.00% is on the low side compared to the rest of the industry. TALO is outperformed by 75.83% 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 82.94% 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
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.
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 0.53, we must say that TALO is in the distress zone and has some risk of bankruptcy.
TALO's Altman-Z score of 0.53 is on the low side compared to the rest of the industry. TALO is outperformed by 63.51% of its industry peers.
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's Debt to FCF ratio of 2.36 is amongst the best of the industry. TALO outperforms 81.52% 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.
TALO has a Debt to Equity ratio (0.55) which 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 | 0.53 |
ROIC/WACC0
WACC9.67%
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 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.
With a decent Quick ratio value of 1.27, TALO is doing good in the industry, outperforming 64.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
TALO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.00%.
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
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.
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 95.26% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TALO is valued cheaply inside the industry as 95.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.27 | ||
| 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% |
10.93
+0.08 (+0.74%)
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 Cap1.86B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.9 (27.17%)
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)6.17%
PT rev (3m)5.55%
EPS NQ rev (1m)3.73%
EPS NQ rev (3m)14.39%
EPS NY rev (1m)10.48%
EPS NY rev (3m)-10.53%
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 | 0.99 | ||
| P/FCF | 3.27 | ||
| P/OCF | 1.71 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 2.28 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.42
Fwd EYN/A
FCF(TTM)3.34
FCFY30.57%
OCF(TTM)6.37
OCFY58.31%
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 | 0.53 |
F-Score6
WACC9.67%
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 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.