Talos Energy Return On Asset vs. Profit Margin

TALO Stock  USD 9.92  0.01  0.10%   
Based on the key profitability measurements obtained from Talos Energy's financial statements, Talos Energy is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Talos Energy's ability to earn profits and add value for shareholders. At this time, Talos Energy's Days Sales Outstanding is very stable compared to the past year. As of the 16th of December 2024, Sales General And Administrative To Revenue is likely to grow to 0.12, while Price To Sales Ratio is likely to drop 1.11. At this time, Talos Energy's Net Income Per E B T is very stable compared to the past year.
For Talos Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Talos Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Talos Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Talos Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Talos Energy over time as well as its relative position and ranking within its peers.
  

Talos Energy's Revenue Breakdown by Earning Segment

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To learn how to invest in Talos Stock, please use our How to Invest in Talos Energy guide.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Talos Energy. If investors know Talos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Talos Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.38)
Earnings Share
0.63
Revenue Per Share
11.579
Quarterly Revenue Growth
0.331
Return On Assets
0.0221
The market value of Talos Energy is measured differently than its book value, which is the value of Talos that is recorded on the company's balance sheet. Investors also form their own opinion of Talos Energy's value that differs from its market value or its book value, called intrinsic value, which is Talos Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Talos Energy's market value can be influenced by many factors that don't directly affect Talos Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Talos Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Talos Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Talos Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Talos Energy Profit Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Talos Energy's current stock value. Our valuation model uses many indicators to compare Talos Energy value to that of its competitors to determine the firm's financial worth.
Talos Energy is rated below average in return on asset category among its peers. It also is rated below average in profit margin category among its peers fabricating about  1.79  of Profit Margin per Return On Asset. At this time, Talos Energy's Net Profit Margin is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Talos Energy's earnings, one of the primary drivers of an investment's value.

Talos Profit Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Talos Energy

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0221
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Talos Energy

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.04 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Talos Profit Margin Comparison

Talos Energy is currently under evaluation in profit margin category among its peers.

Talos Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Talos Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Talos Energy will eventually generate negative long term returns. The profitability progress is the general direction of Talos Energy's change in net profit over the period of time. It can combine multiple indicators of Talos Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Interest Income222.2 M129.8 M
Operating Income181.7 M97.2 M
Net Income From Continuing Ops104.2 M109.4 M
Income Before Tax126.7 M133.1 M
Total Other Income Expense Net-55 M-57.7 M
Net Income Applicable To Common Shares439.2 M461.2 M
Net Income187.3 M196.7 M
Income Tax Expense-60.6 M-57.6 M
Net Interest Income-162.8 M-171 M
Change To Netincome-197.4 M-187.6 M
Net Income Per Share 1.56  1.64 
Income Quality 2.77  2.91 
Net Income Per E B T 1.48  1.50 

Talos Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Talos Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Talos Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Talos Energy's important profitability drivers and their relationship over time.

Use Talos Energy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Talos Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Talos Energy will appreciate offsetting losses from the drop in the long position's value.

Talos Energy Pair Trading

Talos Energy Pair Trading Analysis

The ability to find closely correlated positions to Talos Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Talos Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Talos Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Talos Energy to buy it.
The correlation of Talos Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Talos Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Talos Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Talos Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Talos Energy position

In addition to having Talos Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Corona Opportunity
Corona Opportunity Theme
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corona Opportunity Theme or any other thematic opportunities.
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When determining whether Talos Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Talos Energy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Talos Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Talos Energy Stock:
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To learn how to invest in Talos Stock, please use our How to Invest in Talos Energy guide.
You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
To fully project Talos Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Talos Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Talos Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Talos Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Talos Energy investors may work on each financial statement separately, they are all related. The changes in Talos Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Talos Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.