Talos Energy

TALO

Oil & Gas Exploration & Production · Energy

Price

$17.47

-0.28 (-1.58%)

Market Cap

$2.92B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Weak

Cash Flow

Mixed

Stability

Mixed

Valuation

Data not available

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Share count rising — dilution

+114.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 81.8M (2021) → 175.1M (2025)

Winston Score History

The full picture

Talos Energy is an oil and gas company that drills for and produces crude oil and natural gas. It operates primarily in the Gulf of Mexico, working on offshore platforms in deep and shallow water. The company sells its oil and natural gas to refiners, traders, and energy companies.

Talos makes money by selling the oil and natural gas it pulls out of the ground. It operates almost entirely in the United States, focused on the Gulf of Mexico, with some presence in Mexico's offshore waters as well. The company has built technical expertise in deepwater drilling, but it carries significant debt and is currently unprofitable at the operating level, which makes it sensitive to swings in oil prices. The biggest risk Talos faces is that falling oil prices could make its already thin margins worse, while its main growth opportunity lies in expanding production through new well development and potential acquisitions.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+56.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+185.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

25.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$622M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Talos Energy grew revenue 57% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

76.6%

Premium pricing power — 76.6% gross margin

Profit after running costs

Operating Margin

29.8%

Excellent — 29.8% operating margin

Return on the money invested

ROCE

2.0%

Weak — 2.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+2.4%

Nearly flat sales (+2.4% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

16.7%

Converts sales into free cash efficiently (16.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.60

Moderate — manageable debt (0.60)

Covers its interest

Interest Cover

0.39x

Dangerous — barely covers interest (0.4x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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