TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - NYSE:TALO - US87484T1088 - Common Stock
9.45 USD
-0.27 (-2.78%)
9.6 USD
+0.15 (+1.59%)
We assign a fundamental rating of 3 out of 10 to TALO. TALO was compared to 211 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
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 has a worse Return On Assets (-2.91%) than 73.46% of its industry peers.
TALO's Return On Equity of -6.83% is on the low side compared to the rest of the industry. TALO is outperformed by 70.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.34%, TALO is doing worse than 73.93% 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 21.71%.
The last Return On Invested Capital (0.34%) 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 | -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
TALO has a worse Operating Margin (1.17%) than 72.99% of its industry peers.
TALO's Operating Margin has declined in the last couple of years.
TALO has a Gross Margin of 72.11%. This is amongst the best in the industry. TALO outperforms 83.89% of its industry peers.
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.
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.
The Altman-Z score of TALO (0.52) is worse than 63.51% of its industry peers.
TALO has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
The Debt to FCF ratio of TALO (1.98) is better than 83.41% of its industry peers.
TALO has a Debt/Equity ratio of 0.53. This is a neutral value indicating TALO is somewhat dependend on debt financing.
TALO has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: TALO outperforms 46.92% of its industry peers.
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/WACC0.03
WACC9.82%
2.3 Liquidity
A Current Ratio of 1.22 indicates that TALO should not have too much problems paying its short term obligations.
TALO's Current ratio of 1.22 is in line compared to the rest of the industry. TALO outperforms 55.92% of its industry peers.
A Quick Ratio of 1.22 indicates that TALO should not have too much problems paying its short term obligations.
The Quick ratio of TALO (1.22) is better than 63.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
TALO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -775.00%.
TALO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.59%.
TALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.79% yearly.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.04% on average per year.
The Revenue is expected to decrease by -1.98% on average over the next years.
EPS Next Y-592.25%
EPS Next 2Y-214.31%
EPS Next 3Y-97.15%
EPS Next 5Y8.04%
Revenue Next Year-9.32%
Revenue Next 2Y-6.32%
Revenue Next 3Y-4.28%
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 96.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TALO is valued cheaply inside the industry as 96.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.42 | ||
| EV/EBITDA | 2.06 |
4.3 Compensation for Growth
A cheap valuation may be justified as TALO's earnings are expected to decrease with -97.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-214.31%
EPS Next 3Y-97.15%
5. Dividend
5.1 Amount
TALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.45
-0.27 (-2.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.67%
Inst Owner Change-7.03%
Ins Owners0.59%
Ins Owner Change0.09%
Market Cap1.65B
Analysts81.05
Price Target13.17 (39.37%)
Short Float %8.11%
Short Ratio4.29
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)0.71%
PT rev (3m)0.71%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-7.07%
EPS NY rev (1m)-19.38%
EPS NY rev (3m)-24.58%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.85 | ||
| P/FCF | 2.42 | ||
| P/OCF | 1.38 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 2.06 |
EPS(TTM)-0.27
EYN/A
EPS(NY)-1.58
Fwd EYN/A
FCF(TTM)3.9
FCFY41.25%
OCF(TTM)6.85
OCFY72.5%
SpS11.06
BVpS14.42
TBVpS14.42
PEG (NY)N/A
PEG (5Y)N/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
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-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
WACC9.82%
ROIC/WACC0.03
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-592.25%
EPS Next 2Y-214.31%
EPS Next 3Y-97.15%
EPS Next 5Y8.04%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%-22.66%
Revenue Next Year-9.32%
Revenue Next 2Y-6.32%
Revenue Next 3Y-4.28%
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%