Forensic Analysis · Energy / Oil & Gas · as of Jun 27, 2026
TALOS ENERGY INC. (TALO)
A forensic read on TALOS ENERGY INC. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Distress
Financial health
-0.3
Altman Z-score
Clean
Earnings quality
2
Forensic signals
-33.1%
ROE
$2.2B
Market cap
TALOS ENERGY INC. earns a B (Sound & dependable) forensic quality grade, and its Altman Z-score is -0.3, placing it in the Distress zone. 2 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-10%Return on invested capital.Return on invested capital is -10% and slipping from 30% — well below its ~8% cost of capital, so reinvested dollars may be destroying value, not building it.
+36.4%/yrShare-count dilution.Diluted share count changed +109% over the last 3 years to FY2025 (+36.4%/yr). The count is GROWING — existing holders are being diluted. That's ~36.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~109%.
Key fundamentals
Net Margin-27.8%
Debt / Equity0.57x
Latest Revenue$1.78B
Return on Equity-22.8%
Revenue Growth YoY-9.8%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on TALOS ENERGY INC.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about TALO's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown