(TALO) Talos Energy - Overview
Sector: Energy | Industry: Oil & Gas E&P | Exchange: NYSE (USA) | Market Cap: 2.736m USD | Total Return: 102.3% in 12m
Avg Turnover: 29.3M
Qual. Beats: 1
Rev. Trend: 73.3%
Qual. Beats: 1
Warnings
Interest Coverage Ratio -1.5 is critical
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Altman Z'' -1.34 < 1.0 - financial distress zone
Fakeout
Tailwinds
Leader, Tailwind, Pullback 52w, Confidence
Talos Energy Inc. is a Houston-based independent energy company specializing in the exploration and production (E&P) of oil, natural gas, and natural gas liquids. Its primary geographic focus includes offshore assets in the United States Gulf of Mexico and coastal waters of Mexico.
The company operates via two distinct segments: Upstream operations and Carbon Capture and Sequestration (CCS). In the E&P sector, offshore operators typically face higher technical barriers to entry and capital intensity compared to onshore shale producers due to the complexity of deepwater drilling and subsea infrastructure.
By integrating CCS into its business model, Talos seeks to leverage its geological expertise to provide decarbonization services for industrial emitters along the Gulf Coast. For a deeper analysis of the companys financial health and valuation metrics, consider reviewing the latest data on ValueRay. This dual-track strategy positions the firm to participate in traditional hydrocarbon extraction while addressing long-term energy transition trends.
- Deepwater production volume growth driven by strategic Gulf of Mexico acquisitions
- Crude oil price volatility directly impacts upstream revenue and operating cash flow
- Infrastructure-led exploration success rate determines long-term reserve replacement and asset valuation
- Regulatory oversight of offshore drilling permits affects project timelines and capital expenditure
- Development of carbon capture and sequestration projects provides long-term ESG valuation upside
| Net Income: -742.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -4.23 > 1.0 |
| NWC/Revenue: 8.08% < 20% (prev 1.75%; Δ 6.33% < -1%) |
| CFO/TA 0.16 > 3% & CFO 834.7m > Net Income -742.7m |
| Net Debt (870.5m) to EBITDA (770.7m): 1.13 < 3 |
| Current Ratio: 1.20 > 1.5 & < 3 |
| Outstanding Shares: last quarter (168.4m) vs 12m ago -6.55% < -2% |
| Gross Margin: 6.82% > 18% (prev 0.18%; Δ 663.2% > 0.5%) |
| Asset Turnover: 30.50% > 50% (prev 33.54%; Δ -3.04% > 0%) |
| Interest Coverage Ratio: -1.50 > 6 (EBITDA TTM 770.7m / Interest Expense TTM 243.5m) |
| A: 0.03 (Total Current Assets 847.5m - Total Current Liabilities 707.0m) / Total Assets 5.27b |
| B: -0.22 (Retained Earnings -1.17b / Total Assets 5.27b) |
| C: -0.06 (EBIT TTM -364.6m / Avg Total Assets 5.70b) |
| D: -0.35 (Book Value of Equity -1.17b / Total Liabilities 3.40b) |
| Altman-Z'' = -1.34 = CCC |
| DSRI: 1.08 (Receivables 341.3m/372.2m, Revenue 1.74b/2.06b) |
| GMI: 2.69 (GM 6.82% / 18.37%) |
| AQI: 19.67 (AQ_t 0.83 / AQ_t-1 0.04) |
| SGI: 0.85 (Revenue 1.74b / 2.06b) |
| TATA: -0.30 (NI -742.7m - CFO 834.7m) / TA 5.27b) |
| Beneish M = 9.23 (Cap -4..+1) = D |
As of May 24, 2026, the stock is trading at USD 15.88 with a total of 2,270,521 shares traded.
Over the past week, the price has changed by -2.14%,
over one month by +7.58%,
over three months by +22.07% and
over the past year by +102.27%.
Talos Energy has received a consensus analysts rating of 4.36. Therefore, it is recommended to buy TALO.
- StrongBuy: 6
- Buy: 3
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 18.2 | 14.6% |
P/S = 1.5733
P/B = 1.3349
Revenue TTM = 1.74b USD
EBIT TTM = -364.6m USD
EBITDA TTM = 770.7m USD
Long Term Debt = 1.23b USD (from longTermDebt, last quarter)
Short Term Debt = 3.70m USD (from shortTermDebt, last quarter)
Debt = 1.26b USD (from shortLongTermDebtTotal, last quarter) + Leases 14.7m
Net Debt = 870.5m USD (calculated: Debt 1.26b - CCE 386.4m)
Enterprise Value = 3.61b USD (2.74b + Debt 1.26b - CCE 386.4m)
Interest Coverage Ratio = -1.50 (Ebit TTM -364.6m / Interest Expense TTM 243.5m)
EV/FCF = 10.95x (Enterprise Value 3.61b / FCF TTM 329.3m)
FCF Yield = 9.13% (FCF TTM 329.3m / Enterprise Value 3.61b)
FCF Margin = 18.94% (FCF TTM 329.3m / Revenue TTM 1.74b)
Net Margin = -42.70% (Net Income TTM -742.7m / Revenue TTM 1.74b)
Gross Margin = 6.82% ((Revenue TTM 1.74b - Cost of Revenue TTM 1.62b) / Revenue TTM)
Gross Margin QoQ = 16.50% (prev -7.87%)
Tobins Q-Ratio = 0.68 (Enterprise Value 3.61b / Total Assets 5.27b)
Interest Expense / Debt = 19.38% (Interest Expense 243.5m / Debt 1.26b)
Taxrate = 21.0% (US default 21%)
NOPAT = -288.0m (EBIT -364.6m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.20 (Total Current Assets 847.5m / Total Current Liabilities 707.0m)
Debt / Equity = 0.67 (Debt 1.26b / totalStockholderEquity, last quarter 1.87b)
Debt / EBITDA = 1.13 (Net Debt 870.5m / EBITDA 770.7m)
Debt / FCF = 2.64 (Net Debt 870.5m / FCF TTM 329.3m)
Total Stockholder Equity = 2.24b (last 4 quarters mean from totalStockholderEquity)
RoA = -13.02% (Net Income -742.7m / Total Assets 5.27b)
RoE = -21.78% (Net Income TTM -742.7m / Total Stockholder Equity 3.41b)
RoCE = -7.86% (EBIT -364.6m / Capital Employed (Equity 3.41b + L.T.Debt 1.23b))
RoIC = -6.32% (negative operating profit) (NOPAT -288.0m / Invested Capital 4.56b)
WACC = 11.34% (E(2.74b)/V(3.99b) * Re(9.52%) + D(1.26b)/V(3.99b) * Rd(19.38%) * (1-Tc(0.21)))
Discount Rate = 9.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -15.56 | Cagr: 14.09%
[DCF] Terminal Value 62.81% ; FCFF base≈454.6m ; Y1≈398.7m ; Y5≈322.1m
[DCF] Fair Price = 15.60 (EV 3.47b - Net Debt 870.5m = Equity 2.60b / Shares 166.9m; r=11.34% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.54 | # QB: 1
Revenue Correlation: 73.27 | Revenue CAGR: 11.42% | SUE: 1.00 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.20 | Chg30d=+29.45% | Revisions=+64% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.04 | Chg30d=-11.29% | Revisions=+27% | Analysts=6
EPS current Year (2026-12-31): EPS=0.20 | Chg30d=+179.69% | Revisions=+56% | GrowthEPS=+124.3% | GrowthRev=+12.7%
EPS next Year (2027-12-31): EPS=-0.26 | Chg30d=+22.48% | Revisions=+40% | GrowthEPS=-226.2% | GrowthRev=-4.8%
[Analyst] Revisions Ratio: +64%