Tullow Oil (TUWOY) AI Stock Analysis

• Market Cap: $308.64M
• Dividend Yield: N/A
• Average Volume (3M): 32.35K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.85
• Revenue Growth: -9.36%
• EPS Growth: N/A
• Country: US
• Employees: 397
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.05
• Shares Outstanding: 2,924,311,800
• 10 Day Avg. Volume: 4,902
• 30 Day Avg. Volume: 32,350
• PEG Ratio: -0.08
• Price to Book (P/B): -1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.82
• Enterprise Value/Market Cap: 11.19
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 0.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $0.00 ▼(-100.00%Downside)

Tullow Oil's overall stock score reflects a mix of strengths and weaknesses. Strong operational efficiency and undervaluation are overshadowed by declining revenue, high leverage, and bearish technical indicators. Strategic improvements in financial stability and growth are crucial.

Tullow Oil Business Overview & Revenue Model

Company Description

Tullow Oil plc is a multinational oil and gas exploration and production company headquartered in London, UK. The company primarily operates in Africa, with additional interests in South America and Europe. Tullow Oil focuses on discovering and extracting oil and gas resources, with a strategic emphasis on high-margin oil production and development in its core regions.

How the Company Makes Money

Tullow Oil generates revenue primarily through the exploration, development, and production of oil and gas. The company earns money by selling the crude oil and natural gas it extracts to various markets, including refineries and other energy companies. Key revenue streams include the production of high-margin oil from its key assets in Africa, particularly in Ghana, which is a significant contributor to its earnings. Tullow Oil also engages in strategic partnerships and joint ventures with other oil and gas companies to optimize resource extraction and share technical expertise, which can enhance its production capabilities and financial returns. Additionally, the company may engage in hedging activities to manage risks related to oil price fluctuations, thereby stabilizing its revenue streams.

Tullow Oil Financial Statement Overview

Summary

Tullow Oil exhibits mixed financial performance with strong operational efficiency and cash conversion but struggles with declining revenue, high leverage, and a negative equity position.

Income Statement

Tullow Oil's recent income statement reflects mixed results. The gross profit margin for 2024 stands at a healthy 49.12%, indicating solid cost management. However, the net profit margin is low at 3.56%, and revenue has declined by 6.07% compared to the previous year, reflecting industry challenges. The EBIT margin improved to 38.80%, showing operational efficiency gains, while EBITDA margin is robust at 72.19%. Overall, profitability metrics are mixed, with some strengths in operational efficiency but weaknesses in revenue growth and net income.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity of -$272.7 million, resulting in an undefined debt-to-equity ratio. Return on equity cannot be determined due to negative equity. The equity ratio is negative, indicating liabilities exceed assets, a potential risk for financial stability. The company's high debt level poses financial risks, although cash reserves provide some liquidity cushion.

Cash Flow

Tullow Oil's cash flow statement shows a strong operating cash flow to net income ratio of 13.89, indicating good cash generation relative to net income. Free cash flow is solid at $534 million, though it declined by 8.53% from the previous year. The free cash flow to net income ratio is notably high at 9.78, demonstrating strong cash conversion. While cash flow generation is a strength, the decline in free cash flow growth is a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.53B	1.63B	1.78B	1.27B	1.40B
Gross Profit	754.00M	790.80M	1.09B	634.30M	402.50M
EBITDA	1.11B	862.10M	1.20B	949.90M	-492.00M
Net Income	54.60M	-109.60M	49.10M	-80.70M	-1.22B
Balance Sheet
Total Assets	4.05B	4.46B	5.04B	5.54B	6.56B
Cash, Cash Equivalents and Short-Term Investments	548.60M	499.00M	636.30M	469.10M	805.40M
Total Debt	2.71B	2.99B	3.46B	3.73B	4.39B
Total Liabilities	4.32B	4.82B	5.50B	6.01B	6.77B
Stockholders Equity	-272.70M	-359.40M	-459.50M	-466.10M	-210.00M
Cash Flow
Free Cash Flow	534.00M	583.70M	771.40M	550.40M	267.70M
Operating Cash Flow	758.50M	876.20M	1.08B	786.90M	698.60M
Investing Cash Flow	-213.10M	-268.50M	-356.20M	-101.70M	84.30M
Financing Cash Flow	-492.20M	-742.50M	-552.80M	-1.03B	-271.70M

Tullow Oil Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TUWOY, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 22.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TUWOY.

Tullow Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGY	78 Outperform	$368.56M	6.38	11.83%	7.08%	3.02%	-8.43%
BRY	73 Outperform	$246.76M	9.56	-5.66%	8.39%	-31.28%	-1265.13%
Sector *	67 Neutral	$15.27B	9.69	6.28%	5.53%	4.09%	-67.42%
VTLE	58 Neutral	$651.69M	2.02	-4.61%	―	16.77%	-113.49%
GTE	51 Neutral	$158.27M	21.67	-4.07%	―	-2.39%	-425.29%
WTI	51 Neutral	$251.01M	―	203.83%	2.42%	-5.05%	-383.38%
TUWOY	51 Neutral	$308.64M	5.46	30.50%	―	-9.36%	―