TRANSOCEAN LTD (RIG)

CH0048265513 - Common Stock

4.34  +0.36 (+9.05%)

After market: 4.3199 -0.02 (-0.46%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to RIG. RIG was compared to 60 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of RIG have multiple concerns. RIG is valied quite expensively at the moment, while it does show a decent growth rate.



2

1. Profitability

1.1 Basic Checks

RIG had negative earnings in the past year.
RIG had a positive operating cash flow in the past year.
RIG had negative earnings in each of the past 5 years.
RIG had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

RIG's Return On Assets of -1.72% is on the low side compared to the rest of the industry. RIG is outperformed by 72.88% of its industry peers.
RIG's Return On Equity of -3.26% is on the low side compared to the rest of the industry. RIG is outperformed by 72.88% of its industry peers.
Industry RankSector Rank
ROA -1.72%
ROE -3.26%
ROIC N/A
ROA(3y)-3.54%
ROA(5y)-3.68%
ROE(3y)-6.73%
ROE(5y)-7.15%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

RIG has a Gross Margin of 30.15%. This is in the better half of the industry: RIG outperforms 62.71% of its industry peers.
In the last couple of years the Gross Margin of RIG has declined.
RIG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 30.15%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.5%
GM growth 5Y-5.85%

1

2. Health

2.1 Basic Checks

RIG does not have a ROIC to compare to the WACC, probably because it is not profitable.
RIG has more shares outstanding than it did 1 year ago.
RIG has more shares outstanding than it did 5 years ago.
RIG has a worse debt/assets ratio than last year.

2.2 Solvency

RIG has an Altman-Z score of 0.12. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
RIG has a Altman-Z score of 0.12. This is amonst the worse of the industry: RIG underperforms 83.05% of its industry peers.
RIG has a Debt/Equity ratio of 0.63. This is a neutral value indicating RIG is somewhat dependend on debt financing.
RIG's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. RIG is outperformed by 64.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF N/A
Altman-Z 0.12
ROIC/WACCN/A
WACC6.38%

2.3 Liquidity

A Current Ratio of 1.36 indicates that RIG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, RIG is not doing good in the industry: 77.97% of the companies in the same industry are doing better.
RIG has a Quick Ratio of 1.08. This is a normal value and indicates that RIG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RIG (1.08) is worse than 77.97% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.08

4

3. Growth

3.1 Past

RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.43%, which is quite impressive.
RIG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.98%.
RIG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.26% yearly.
EPS 1Y (TTM)80.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)9.98%
Revenue growth 3Y-3.51%
Revenue growth 5Y-1.26%
Sales Q2Q%32.4%

3.2 Future

The Earnings Per Share is expected to grow by 32.54% on average over the next years. This is a very strong growth
Based on estimates for the next years, RIG will show a quite strong growth in Revenue. The Revenue will grow by 12.04% on average per year.
EPS Next Y82.24%
EPS Next 2Y50.23%
EPS Next 3Y32.54%
EPS Next 5YN/A
Revenue Next Year22.06%
Revenue Next 2Y17.35%
Revenue Next 3Y12.04%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 17.24, RIG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RIG is valued a bit more expensive than 66.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.06, RIG is valued a bit cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 17.24

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RIG is valued expensively inside the industry as 84.75% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.9

4.3 Compensation for Growth

RIG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RIG's earnings are expected to grow with 32.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.23%
EPS Next 3Y32.54%

0

5. Dividend

5.1 Amount

No dividends for RIG!.
Industry RankSector Rank
Dividend Yield N/A

TRANSOCEAN LTD

NYSE:RIG (10/31/2024, 7:24:00 PM)

After market: 4.3199 -0.02 (-0.46%)

4.34

+0.36 (+9.05%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.80B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 17.24
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.72%
ROE -3.26%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 30.15%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.36
Quick Ratio 1.08
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)80.43%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y82.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.98%
Revenue growth 3Y-3.51%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y