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 211 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 positive earnings in the past year.
In the past year TALO had a positive cash flow from operations.
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
With a Return On Assets value of 0.43%, TALO is not doing good in the industry: 65.88% of the companies in the same industry are doing better.
TALO's Return On Equity of 0.96% is on the low side compared to the rest of the industry. TALO is outperformed by 63.51% of its industry peers.
The Return On Invested Capital of TALO (1.94%) is worse than 69.67% 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 23.79%.
The last Return On Invested Capital (1.94%) 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 | 0.43% | ||
| ROE | 0.96% | ||
| ROIC | 1.94% |
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
The Profit Margin of TALO (1.27%) is worse than 63.98% of its industry peers.
Looking at the Operating Margin, with a value of 6.52%, TALO is doing worse than 65.40% of the companies in the same industry.
TALO's Operating Margin has declined in the last couple of years.
The Gross Margin of TALO (72.79%) is better than 83.89% of its industry peers.
TALO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 1.27% | ||
| GM | 72.79% |
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.
Compared to 1 year ago, TALO has more shares outstanding
The number of shares outstanding for TALO has been increased compared to 5 years ago.
TALO has a better debt/assets ratio than last year.
2.2 Solvency
TALO has an Altman-Z score of 0.60. This is a bad value and indicates that TALO is not financially healthy and even has some risk of bankruptcy.
TALO has a worse Altman-Z score (0.60) than 63.98% of its industry peers.
TALO has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as TALO would need 2.10 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.10, TALO belongs to the best of the industry, outperforming 82.94% of the companies in the same industry.
TALO has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, TALO is in line with its industry, outperforming 47.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.18
WACC10.52%
2.3 Liquidity
A Current Ratio of 1.05 indicates that TALO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, TALO is in line with its industry, outperforming 44.55% of the companies in the same industry.
TALO has a Quick Ratio of 1.05. This is a normal value and indicates that TALO is financially healthy and should not expect problems in meeting its short term obligations.
TALO has a Quick ratio of 1.05. This is comparable to the rest of the industry: TALO outperforms 56.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
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%.
TALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.40%.
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)-70%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%146.15%
Revenue 1Y (TTM)31.4%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%19.33%
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 -65.39% on average per year.
TALO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.98% yearly.
EPS Next Y-455.64%
EPS Next 2Y-193.1%
EPS Next 3Y-101.3%
EPS Next 5Y-65.39%
Revenue Next Year-7.98%
Revenue Next 2Y-5.01%
Revenue Next 3Y-3.67%
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
A Price/Earnings ratio of 304.33 indicates a quite expensive valuation of TALO.
Compared to the rest of the industry, the Price/Earnings ratio of TALO indicates a slightly more expensive valuation: TALO is more expensive than 69.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. TALO is valued rather expensively when compared to this.
The Forward Price/Earnings Ratio is negative for TALO. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 304.33 | ||
| 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 95.73% of the companies in the same industry.
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 | 2.54 | ||
| EV/EBITDA | 2.01 |
4.3 Compensation for Growth
A cheap valuation may be justified as TALO's earnings are expected to decrease with -101.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-193.1%
EPS Next 3Y-101.3%
5. Dividend
5.1 Amount
TALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.13
+0.1 (+1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.22%
Inst Owner Change0%
Ins Owners0.59%
Ins Owner Change1.4%
Market Cap1.63B
Analysts81.05
Price Target13.07 (43.15%)
Short Float %10.81%
Short Ratio4.94
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)297.23%
Min EPS beat(2)163.52%
Max EPS beat(2)430.93%
EPS beat(4)3
Avg EPS beat(4)148.4%
Min EPS beat(4)-124.09%
Max EPS beat(4)430.93%
EPS beat(8)3
Avg EPS beat(8)50.57%
EPS beat(12)4
Avg EPS beat(12)21.11%
EPS beat(16)5
Avg EPS beat(16)-228.95%
Revenue beat(2)1
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)0.82%
Revenue beat(4)2
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)4.03%
Revenue beat(8)3
Avg Revenue beat(8)-0.25%
Revenue beat(12)6
Avg Revenue beat(12)2.43%
Revenue beat(16)10
Avg Revenue beat(16)6.12%
PT rev (1m)0.93%
PT rev (3m)-19.89%
EPS NQ rev (1m)-10.09%
EPS NQ rev (3m)-54.17%
EPS NY rev (1m)-4.92%
EPS NY rev (3m)-9.03%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)-4.8%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 304.33 | ||
| Fwd PE | N/A | ||
| P/S | 0.79 | ||
| P/FCF | 2.54 | ||
| P/OCF | 1.44 | ||
| P/B | 0.6 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 2.01 |
EPS(TTM)0.03
EY0.33%
EPS(NY)-1.37
Fwd EYN/A
FCF(TTM)3.6
FCFY39.44%
OCF(TTM)6.36
OCFY69.62%
SpS11.52
BVpS15.3
TBVpS15.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 0.96% | ||
| ROCE | 2.46% | ||
| ROIC | 1.94% | ||
| ROICexc | 2.03% | ||
| ROICexgc | 2.03% | ||
| OM | 6.52% | ||
| PM (TTM) | 1.27% | ||
| GM | 72.79% | ||
| FCFM | 31.24% |
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-Score9
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 40.64% | ||
| Cap/Sales | 23.91% | ||
| Interest Coverage | 1 | ||
| Cash Conversion | 84.39% | ||
| Profit Quality | 2454.61% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 0.6 |
F-Score9
WACC10.52%
ROIC/WACC0.18
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-455.64%
EPS Next 2Y-193.1%
EPS Next 3Y-101.3%
EPS Next 5Y-65.39%
Revenue 1Y (TTM)31.4%
Revenue growth 3Y16.61%
Revenue growth 5Y16.79%
Sales Q2Q%19.33%
Revenue Next Year-7.98%
Revenue Next 2Y-5.01%
Revenue Next 3Y-3.67%
Revenue Next 5Y-1.98%
EBIT growth 1Y-42.18%
EBIT growth 3Y-35.26%
EBIT growth 5Y-13.32%
EBIT Next Year672.28%
EBIT Next 3Y90.66%
EBIT Next 5Y48.01%
FCF growth 1Y131.14%
FCF growth 3Y56.61%
FCF growth 5YN/A
OCF growth 1Y72.14%
OCF growth 3Y32.76%
OCF growth 5Y19.58%