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TALOTalos Energy Inc.
$13.47$2.2B
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  4. Financial Ratios

Talos Energy Inc. (TALO) Financial Ratios

Latest Ratios: P/E Ratio -4.8x · EV/EBITDA 2.9x · ROE -20.1%. (2015–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

TALO Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.2B$1.9B$1.7B$1.7B$1.6B$801M$558M$1.6B$752M——
Enterprise Value$3.1B$2.8B$2.8B$2.9B$2.1B$1.7B$1.5B$2.3B$1.3B——
P/E Ratio →-4.78——9.184.14——27.923.39——
P/S Ratio1.261.080.861.180.960.640.971.810.84——
P/B Ratio1.090.890.620.801.361.050.601.520.75——
P/FCF4.954.253.76—4.096.79——33.36——
P/OCF2.402.061.773.312.231.951.854.172.85——

P/E links to full P/E history page with 30-year chart

TALO EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.581.441.981.291.382.662.541.42——
EV / EBITDA2.912.612.163.001.772.07—3.882.20——
EV / EBIT——24.419.604.31——19.143.58——
EV / FCF—6.196.25—5.5314.50——56.24——

TALO Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin2.9%2.9%19.4%27.6%56.0%45.1%-6.3%34.9%51.0%34.7%-0.5%
Operating Margin-5.9%-5.9%8.8%14.4%44.6%30.1%-73.2%23.5%28.4%11.0%-32.3%
Net Profit Margin-27.9%-27.9%-3.9%12.8%23.1%-14.7%-80.8%6.5%24.9%-15.3%-83.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-20.1%-20.1%-3.1%11.3%39.7%-21.7%-46.4%5.6%46.5%—-2978.6%
ROA-8.5%-8.5%-1.4%4.8%13.1%-6.5%-17.2%2.3%11.9%-5.1%-15.9%
ROIC-2.3%-2.3%3.6%6.2%32.5%15.7%-17.4%9.8%17.8%5.3%-7.2%
ROCE-2.0%-2.0%3.6%6.3%31.9%16.5%-18.3%9.9%16.8%4.7%-7.1%

TALO Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.570.570.450.550.521.291.090.700.65—100.37
Debt / EBITDA1.151.150.941.250.501.18—1.271.143.143.90
Net Debt / Equity—0.410.410.540.481.201.050.620.51—95.75
Net Debt / EBITDA0.820.820.861.210.461.10—1.120.893.003.72
Debt / FCF—1.942.50—1.447.72——22.8731.87216.42
Interest Coverage-2.70-2.700.621.733.95-0.39-3.331.233.930.22-1.96

TALO Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.301.300.910.730.610.570.550.791.100.450.81
Quick Ratio1.301.300.910.730.610.570.550.790.790.450.81
Cash Ratio0.560.560.150.060.070.120.080.230.370.100.17
Asset Turnover—0.320.320.300.540.450.200.350.360.330.21
Inventory Turnover————————3.78319.04229.65
Days Sales Outstanding—66.2474.7769.5046.8464.37110.9952.5562.9379.1495.21

TALO Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———10.9%24.2%——3.6%29.5%——
FCF Yield20.2%23.5%26.6%—24.5%14.7%——3.0%——
Buyback Yield5.3%6.2%2.6%2.8%0.3%0.4%0.1%0.0%0.0%——
Total Shareholder Yield5.3%6.2%2.6%2.8%0.3%0.4%0.1%0.0%0.0%——
Shares Outstanding—$175M$176M$121M$84M$82M$68M$54M$46M$54M$54M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetStrained
Cash FlowMixed
Top Statement Risk

Operational leverage and volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Market Pricing Reflects Asset Scarcity

According to current market data, Talos Energy trades at a P/FCF of 4.90, suggesting that investors are prioritizing immediate cash generation over earnings-based multiples, which remain distorted by negative net income and the company's heavy reliance on non-cash depreciation charges inherent to its deepwater offshore asset base.

The absence of a meaningful P/E ratio, coupled with a forward P/E of 30.59, indicates that the market is struggling to value the company on a traditional earnings basis. Investors appear to be utilizing EV/EBITDA as the primary valuation anchor, which, at 2.88, reflects a deepwater discount compared to onshore peers that benefit from lower operational complexity and more predictable cost structures.

Capital Efficiency Impaired by Losses

As reported in recent financial statements, Talos Energy's ROIC has trended into negative territory, reaching -1.7% in 2025Q4, which highlights the company's ongoing struggle to generate returns that exceed its cost of capital while navigating the high-cost environment of Gulf of Mexico exploration and production activities.

The decay in return on invested capital suggests that recent acquisitions and infrastructure investments have yet to reach the necessary scale to drive profitability. This trend warrants further investigation into whether the company's infrastructure-led exploration strategy is suffering from diminishing marginal returns on its mature asset base.

Working Capital Cycles Remain Stagnant

Based on the provided figures, Talos Energy's asset turnover ratio has remained consistently low at approximately 0.08 over the last ten quarters, indicating that the company's massive investment in offshore infrastructure is not being utilized with sufficient intensity to drive meaningful revenue growth relative to its capital base.

The lack of improvement in asset turnover suggests that the company's capital-intensive model is structurally limited by the long lead times of deepwater projects. Investors should monitor whether the recent integration of EnVen Energy assets will eventually improve these efficiency metrics or if the company remains trapped in a cycle of high maintenance capital requirements.

Debt Burden Pressures Financial Flexibility

According to quarterly filings, Talos Energy's debt-to-EBITDA ratio has shown extreme volatility, spiking to 44.08 in 2025Q2, which underscores the company's vulnerability to commodity price swings and the significant risk posed by its fixed-cost structure in a period of declining production and negative operating margins.

While the absolute debt level has remained relatively stable, the erosion of the equity base has caused the debt-to-equity ratio to climb to 0.66, signaling a tightening of the company's financial cushion. This leverage profile suggests that the firm has limited room for error should commodity prices remain depressed or if decommissioning liabilities require accelerated cash outflows.

Misapplication of P/E Multiples

The P/E ratio is the most commonly misapplied metric for Talos Energy, as it fails to account for the massive non-cash depreciation and depletion charges that characterize deepwater E&P operations, thereby creating a misleading picture of the company's actual cash-generating capacity and underlying operational health.

Investors should instead focus on EV/EBITDA or Net Asset Value (NAV) to better understand the company's valuation, as these metrics normalize for the capital structure and the non-cash accounting nuances of the energy sector. Relying on P/E in this context obscures the reality that the company is currently valued on its reserve base rather than its accounting earnings.

Download Financial Ratios Data

Includes 30+ ratios · 11 years · Updated daily

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TALO — Frequently Asked Questions

Quick answers to the most common questions about buying TALO stock.

What is Talos Energy Inc.'s P/E ratio?

Talos Energy Inc.'s current P/E ratio is -4.8x. The historical average is 11.2x.

What is Talos Energy Inc.'s EV/EBITDA?

Talos Energy Inc.'s current EV/EBITDA is 2.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 2.5x.

What is Talos Energy Inc.'s ROE?

Talos Energy Inc.'s return on equity (ROE) is -20.1%. The historical average is 1.5%.

Is TALO stock overvalued?

Based on historical data, Talos Energy Inc. is trading at a P/E of -4.8x. Compare with industry peers and growth rates for a complete picture.

What are Talos Energy Inc.'s profit margins?

Talos Energy Inc. has 2.9% gross margin and -5.9% operating margin.

How much debt does Talos Energy Inc. have?

Talos Energy Inc.'s Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.