Tullow Oil plc Fundamental Analysis
Tullow Oil plc (TUWOY) shows weak financial fundamentals with a PE ratio of 46.70, profit margin of 0.76%, and ROE of -2.23%. The company generates $0.8B in annual revenue with weak year-over-year growth of -6.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 104.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze TUWOY's fundamental strength across five key dimensions:
Efficiency Score
WeakTUWOY struggles to generate sufficient returns from assets.
Valuation Score
ModerateTUWOY shows balanced valuation metrics.
Growth Score
WeakTUWOY faces weak or negative growth trends.
Financial Health Score
ModerateTUWOY shows balanced financial health with some risks.
Profitability Score
WeakTUWOY struggles to sustain strong margins.
Key Financial Metrics
Is TUWOY Expensive or Cheap?
P/E Ratio
TUWOY trades at 46.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TUWOY's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Tullow Oil plc at -1.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.63 times EBITDA. This is generally considered low.
How Well Does TUWOY Make Money?
Net Profit Margin
For every $100 in sales, Tullow Oil plc keeps $0.76 as profit after all expenses.
Operating Margin
Core operations generate 24.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.23 in profit for every $100 of shareholder equity.
ROA
Tullow Oil plc generates $0.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tullow Oil plc generates strong operating cash flow of $204.90M, reflecting robust business health.
Free Cash Flow
Tullow Oil plc produces free cash flow of $34.67M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
TUWOY converts 13.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
-1.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-8.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How TUWOY Stacks Against Its Sector Peers
| Metric | TUWOY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.70 | 21.16 | Worse (Expensive) |
| ROE | -2.23% | 984.00% | Weak |
| Net Margin | 0.76% | -59500.00% (disorted) | Weak |
| Debt/Equity | -8.93 | -0.48 (disorted) | Distorted |
| Current Ratio | 0.52 | 4.98 | Weak Liquidity |
| ROA | 0.20% | -11018321.00% (disorted) | Weak |
TUWOY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tullow Oil plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-13.32%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
103.06%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-42.74%
Industry Style: Cyclical, Value, Commodity
Declining