TALOS ENERGY INC (TALO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TALO - US87484T1088 - Common Stock
11.38 USD
-0.25 (-2.15%)
11.5 USD
+0.12 (+1.05%)
Overall TALO gets a fundamental rating of 3 out of 10. We evaluated TALO against 207 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.
- TALO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TALO's Return On Assets of -6.25% is on the low side compared to the rest of the industry. TALO is outperformed by 77.40% of its industry peers.
- The Return On Equity of TALO (-14.96%) is worse than 76.44% of its industry peers.
- TALO has a worse Return On Invested Capital (0.00%) than 74.04% 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 21.94%.
- 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
- With a Operating Margin value of 0.00%, TALO is not doing good in the industry: 75.48% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of TALO has declined.
- The Gross Margin of TALO (72.82%) is better than 82.69% 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.
- TALO has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for TALO has been increased compared to 5 years ago.
- Compared to 1 year ago, TALO has an improved debt to assets ratio.
2.2 Solvency
- TALO has an Altman-Z score of 0.54. This is a bad value and indicates that TALO is not financially healthy and even has some risk of bankruptcy.
- TALO's Altman-Z score of 0.54 is on the low side compared to the rest of the industry. TALO is outperformed by 64.42% 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.
- Looking at the Debt to FCF ratio, with a value of 2.36, TALO belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- 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.
- 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 | 0.55 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 0.54 |
ROIC/WACC0
WACC9.49%
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 of 1.27. This is comparable to the rest of the industry: TALO outperforms 57.21% of 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 63.94% 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.
- 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
- Based on estimates for the next years, TALO will show a very negative growth in Earnings Per Share. The EPS will decrease by -54.77% on average per year.
- The Revenue is expected to decrease by -1.64% on average over the next years.
EPS Next Y-555.92%
EPS Next 2Y-205.51%
EPS Next 3Y-98.87%
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
- 96.63% of the companies in the same industry are more expensive than TALO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, TALO is valued cheaply inside the industry as 95.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.41 | ||
| EV/EBITDA | 2.35 |
4.3 Compensation for Growth
- TALO's earnings are expected to decrease with -98.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-205.51%
EPS Next 3Y-98.87%
5. Dividend
5.1 Amount
- No dividends for TALO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
11.38
-0.25 (-2.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners73.64%
Inst Owner Change0.32%
Ins Owners0.63%
Ins Owner Change0.13%
Market Cap1.93B
Revenue(TTM)1.87B
Net Income(TTM)-356.22M
Analysts80
Price Target13.9 (22.14%)
Short Float %8.55%
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)1.87%
PT rev (3m)5.55%
EPS NQ rev (1m)-7.7%
EPS NQ rev (3m)8.72%
EPS NY rev (1m)-2.33%
EPS NY rev (3m)5.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.03 | ||
| P/FCF | 3.41 | ||
| P/OCF | 1.79 | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 2.35 |
EPS(TTM)-0.32
EYN/A
EPS(NY)-1.49
Fwd EYN/A
FCF(TTM)3.34
FCFY29.36%
OCF(TTM)6.37
OCFY56%
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 | 0.54 |
F-Score6
WACC9.49%
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-555.92%
EPS Next 2Y-205.51%
EPS Next 3Y-98.87%
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 Year724.42%
EBIT Next 3Y93.46%
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.
What is the valuation status of TALOS ENERGY INC (TALO) stock?
ChartMill assigns a valuation rating of 2 / 10 to TALOS ENERGY INC (TALO). This can be considered as Overvalued.
How profitable is TALOS ENERGY INC (TALO) stock?
TALOS ENERGY INC (TALO) has a profitability rating of 3 / 10.
What is the earnings growth outlook for TALOS ENERGY INC?
The Earnings per Share (EPS) of TALOS ENERGY INC (TALO) is expected to decline by -555.92% in the next year.