Talos Energy (MEX:TALO) Operating Margin %: 5.42% (As of Mar. 2026) — 57% Below Median


MEX:TALO Talos Energy Inc MEX:TALO
36 GF Score
Price MXN241.44
GF Value MXN183.54
Valuation Modestly Overvalued
! 3 Warning Signs
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What is Talos Energy Operating Margin %?

Talos Energy MEX:TALO 36 Operating Margin % is 5.42% as of Mar. 2026, which is 57% below its 10-year median of 12.72. GuruFocus rates MEX:TALO with a GF Score™ of 36/100 and a GF Value™ of MXN183.54 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 916 Oil & Gas companies, Talos Energy ranks worse than 80.57% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Talos Energy's Operating Income for the three months ended in Mar. 2026 was MXN461 Mil. Talos Energy's Revenue for the three months ended in Mar. 2026 was MXN8,517 Mil. Therefore, Talos Energy's Operating Margin % for the quarter that ended in Mar. 2026 was 5.42%.

The historical rank and industry rank for Talos Energy's Operating Margin % or its related term are showing as below:

MEX:TALO' s Operating Margin % Range Over the Past 10 Years
Min: -32.29   Med: 12.72   Max: 44.56
Current: -7.11


MEX:TALO's Operating Margin % is ranked worse than
80.57% of 916 companies
in the Oil & Gas industry
Industry Median: 6.86 vs MEX:TALO: -7.11

Talos Energy's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Talos Energy's Operating Income for the three months ended in Mar. 2026 was MXN461 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN-2,276 Mil.


Talos Energy  (MEX:TALO) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Talos Energy Operating Margin % Related Terms


Talos Energy Operating Margin % Historical Data

* Premium members only.

The historical data trend for Talos Energy's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Talos Energy Operating Margin % Chart

Talos Energy Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.56 44.56 14.39 8.76 -5.94

Talos Energy Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.47 -11.70 -5.77 -18.76 5.42

MEX:TALO vs NOG, MNR, BSM: Operating Margin % Comparison

For the Oil & Gas E&P subindustry, Talos Energy's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Talos Energy Operating Margin % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Talos Energy's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Talos Energy's Operating Margin % falls into.


MEX:TALO
36GF Score
Talos Energy Inc MEX:TALO
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Talos Energy Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Talos Energy's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-1904.967 / 32051.406
=-5.94 %

Talos Energy's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=461.493 / 8517.025
=5.42 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 5.42% mean?
Talos Energy (MEX:TALO) has a Operating Margin % of 5.42% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Talos Energy and its competitors. This is 57% below median its historical median of 12.72. According to the industry distribution chart, Talos Energy ranks #738 out of 916 companies in the Oil & Gas industry, placing it in the top 80.6%.
Is Talos Energy's Operating Margin % too high?
Talos Energy's current Operating Margin % of 5.42% is 57% below median its 10-year median of 12.72. The Oil & Gas industry median Operating Margin % is 6.86. Talos Energy's value of 5.42% is 21% below this industry median. Based on the distribution chart, Talos Energy ranks #738 out of 916 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Talos Energy has a GF Score™ of 36/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Talos Energy's Operating Margin % compare to NOG and MNR?
According to the Oil & Gas industry distribution chart, Talos Energy ranks #738 out of 916 companies for Operating Margin %. This places Talos Energy in the lower half of its industry. The industry median Operating Margin % is 6.86. Talos Energy's value of 5.42% is 21% below this benchmark. While the company's 10-year median is 12.72 vs. the industry median of 6.86, Talos Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Talos Energy's current Operating Margin % of 5.42% is 21% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Talos Energy and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Talos Energy's current Operating Margin % is 5.42%, which is 57% below median its own 10-year median of 12.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Talos Energy stock overvalued right now?
Based on GuruFocus' analysis, Talos Energy (MEX:TALO) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN183.54, compared to a current price of MXN241.44 — trading 31.5% above its estimated fair value. The current Operating Margin % is 5.42%, which is 57% below median its 10-year median of 12.72 and 21% below the Oil & Gas industry median of 6.86. Talos Energy's overall GF Score™ is 36/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Talos Energy (MEX:TALO), the current Operating Margin % is 5.42% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Talos Energy (MEX:TALO) Overvalued in 2026?

Based on GuruFocus' analysis, Talos Energy stock appears to be overvalued. The current stock price of MXN241.44 is trading 31.5% above its estimated GF Value™ of MXN183.54. GuruFocus considers Talos Energy to be Modestly Overvalued.

Key valuation signals for MEX:TALO:

  • Operating Margin %: 5.42% (57% below median its 10-year median of 12.72)
  • GF Value™: MXN183.54 vs. price of MXN241.44 (31.5% above fair value)
  • GF Score™: 36/100 with 3 warning signs
  • Industry Position: 21% below the Oil & Gas median (#738 of 916)

No single metric tells the full story. See the MEX:TALO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Talos Energy Business Description

Industry EnergyOil & Gas
Other Exchanges TALO:USA7T2:Germany
Address 333 Clay Street, Suite 3300, Houston, TX, USA, 77002
Talos Energy Inc is an independent oil and gas company predominantly involved in offshore exploration and production. The company has operations in the United States, the Gulf of Mexico, and offshore Mexico. The company's operating segments are; exploration and production of oil, natural gas and NGLs, and the CCS segment. Its revenue is generated from the sale of oil, natural gas, and NGL quantities sold to purchasers.
36GF Score

Get the complete analysis for MEX:TALO

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN241.44
Price
MXN183.54
GF Value