TAL is a small-cap oil producer, is now trading at 3.6x times' Forward P/E. Revenue growth has been quite impressive, largely driven by favourable oil prices and as the company reinvested heavily into drilling. Historically, the company issued shares to invest heavily in exploration. The balance sheet is strong, with net cash of $17.8M. The trailing twelve-month cash flow is $208M, and cash flow grew nicely around 17% compared to $172M last year. The yield looks attractive, currently around 10%, and we like dividend initiations. The company recently announced a share buyback plan, allowing the company to repurchase up to 5% of outstanding shares. Going forward, revenue will be dependent on oil prices, which are under pressure recently. Overall, we like the name, especially given recent capital returns programs. Shares look cheap at this valuation, we would be comfortable buying here.
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