TALOS ENERGY INC (TALO)
US87484T1088 - Common Stock
Overall TALO gets a fundamental rating of 2 out of 10. We evaluated TALO against 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of TALO have multiple concerns. TALO has a expensive valuation and it also scores bad on growth.
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.
TALO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TALO's Return On Assets of 3.89% is on the low side compared to the rest of the industry. TALO is outperformed by 61.50% of its industry peers.
TALO has a Return On Equity of 8.70%. This is in the lower half of the industry: TALO underperforms 63.38% of its industry peers.
TALO has a Return On Invested Capital of 4.53%. This is in the lower half of the industry: TALO underperforms 68.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TALO is significantly below the industry average of 44.22%.
The last Return On Invested Capital (4.53%) for TALO is well below the 3 year average (14.89%), which needs to be investigated, but indicates that TALO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 8.7% | ||
| ROIC | 4.53% |
ROA(3y)3.25%
ROA(5y)-0.88%
ROE(3y)5.8%
ROE(5y)-5.48%
ROIC(3y)14.89%
ROIC(5y)N/A
1.3 Margins
TALO's Profit Margin of 12.85% is in line compared to the rest of the industry. TALO outperforms 47.89% of its industry peers.
In the last couple of years the Profit Margin of TALO has declined.
Looking at the Operating Margin, with a value of 16.68%, TALO is in line with its industry, outperforming 41.78% of the companies in the same industry.
In the last couple of years the Operating Margin of TALO has declined.
TALO has a better Gross Margin (73.11%) than 79.81% of its industry peers.
In the last couple of years the Gross Margin of TALO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.68% | ||
| PM (TTM) | 12.85% | ||
| GM | 73.11% |
OM growth 3YN/A
OM growth 5Y-12.26%
PM growth 3YN/A
PM growth 5Y-12.36%
GM growth 3Y8.65%
GM growth 5Y-2.6%
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.
Compared to 1 year ago, TALO has more shares outstanding
Compared to 5 years ago, TALO has more shares outstanding
TALO has a better debt/assets ratio than last year.
2.2 Solvency
TALO has an Altman-Z score of 0.84. This is a bad value and indicates that TALO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.84, TALO is doing worse than 63.85% of the companies in the same industry.
TALO has a Debt/Equity ratio of 0.52. This is a neutral value indicating TALO is somewhat dependend on debt financing.
TALO's Debt to Equity ratio of 0.52 is in line compared to the rest of the industry. TALO outperforms 47.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.47
WACC9.59%
2.3 Liquidity
TALO has a Current Ratio of 0.73. This is a bad value and indicates that TALO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TALO (0.73) is worse than 76.53% of its industry peers.
TALO has a Quick Ratio of 0.73. This is a bad value and indicates that TALO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.73, TALO is doing worse than 70.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
TALO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -83.58%.
The earnings per share for TALO have been decreasing by -20.25% on average. This is quite bad
Looking at the last year, TALO shows a very negative growth in Revenue. The Revenue has decreased by -11.75% in the last year.
TALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.34% yearly.
EPS 1Y (TTM)-83.58%
EPS 3YN/A
EPS 5Y-20.25%
EPS growth Q2Q-105%
Revenue 1Y (TTM)-11.75%
Revenue growth 3Y36.29%
Revenue growth 5Y10.34%
Revenue growth Q2Q12.5%
3.2 Future
The Earnings Per Share is expected to decrease by -50.03% on average over the next years. This is quite bad
Based on estimates for the next years, TALO will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y28.2%
EPS Next 2Y74.12%
EPS Next 3Y-48.43%
EPS Next 5Y-50.03%
Revenue Next Year33.69%
Revenue Next 2Y18.21%
Revenue Next 3Y6.66%
Revenue Next 5Y5.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 55.11, TALO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TALO is valued a bit more expensive than the industry average as 77.46% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of TALO to the average of the S&P500 Index (28.53), we can say TALO is valued expensively.
Based on the Price/Forward Earnings ratio of 42.99, the valuation of TALO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TALO indicates a slightly more expensive valuation: TALO is more expensive than 71.36% of the companies listed in the same industry.
TALO is valuated expensively when we compare the Price/Forward Earnings ratio to 20.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.11 | ||
| Fwd PE | 42.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TALO is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TALO does not grow enough to justify the current Price/Earnings ratio.
TALO's earnings are expected to decrease with -48.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y74.12%
EPS Next 3Y-48.43%
5. Dividend
5.1 Amount
No dividends for TALO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TALOS ENERGY INC
NYSE:TALO (5/15/2024, 12:32:21 PM)
12.125
-0.15 (-1.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.11 | ||
| Fwd PE | 42.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 8.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.68% | ||
| PM (TTM) | 12.85% | ||
| GM | 73.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-83.58%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y28.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.75%
Revenue growth 3Y36.29%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y