Talos Energy, Inc. — Earnings Quality Grade F
TALO · Energy
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 34 days, change -10 days YoY
AR growth -29.5% vs revenue growth -9.8%
Revenue -9.8%, CFFO -2.8%. Cash follows revenue
Expense Quality
No material inventory
Insufficient data
SG&A/Gross Profit = 87.9%, exceeds 70%
Gross margin swung -9.5pp (19.4% → 9.9%)
Cash Flow Quality
CFFO/NI = -1.89. Below 1.0
FCF $0.9B, FCF/NI = -1.89
Accruals ratio = -25.8%. Low accruals
Cash $0.4B covers only 29% of debt $1.2B
Balance Sheet Health
No goodwill. Clean balance sheet
Interest coverage = -0.6x (<2x). Financial stress
Other assets -30.2% vs revenue -9.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = -3.50 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25