TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - NYSE:RIG - CH0048265513 - Common Stock
3.8665 USD
-0.03 (-0.86%)
We assign a fundamental rating of 3 out of 10 to RIG. RIG was compared to 60 industry peers in the Energy Equipment & Services industry. RIG may be in some trouble as it scores bad on both profitability and health. RIG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RIG has reported negative net income.
RIG had a positive operating cash flow in the past year.
In the past 5 years RIG always reported negative net income.
In the past 5 years RIG always reported a positive cash flow from operatings.
1.2 Ratios
RIG has a Return On Assets of -18.13%. This is amonst the worse of the industry: RIG underperforms 93.33% of its industry peers.
RIG has a Return On Equity of -36.31%. This is amonst the worse of the industry: RIG underperforms 86.67% of its industry peers.
RIG has a worse Return On Invested Capital (3.41%) than 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.13% | ||
| ROE | -36.31% | ||
| ROIC | 3.41% |
ROA(3y)-3.46%
ROA(5y)-3.17%
ROE(3y)-6.63%
ROE(5y)-6.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 15.51%, RIG is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
RIG's Gross Margin of 38.56% is fine compared to the rest of the industry. RIG outperforms 76.67% of its industry peers.
RIG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.51% | ||
| PM (TTM) | N/A | ||
| GM | 38.56% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.81%
GM growth 5Y4.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RIG is destroying value.
Compared to 1 year ago, RIG has more shares outstanding
RIG has more shares outstanding than it did 5 years ago.
RIG has a better debt/assets ratio than last year.
2.2 Solvency
RIG has an Altman-Z score of 0.05. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.05, RIG is doing worse than 80.00% of the companies in the same industry.
RIG has a debt to FCF ratio of 12.91. This is a negative value and a sign of low solvency as RIG would need 12.91 years to pay back of all of its debts.
The Debt to FCF ratio of RIG (12.91) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.60 indicates that RIG is somewhat dependend on debt financing.
RIG has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: RIG underperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Altman-Z | 0.05 |
ROIC/WACC0.47
WACC7.32%
2.3 Liquidity
RIG has a Current 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.
RIG's Current ratio of 1.08 is on the low side compared to the rest of the industry. RIG is outperformed by 93.33% of its industry peers.
A Quick Ratio of 0.91 indicates that RIG may have some problems paying its short term obligations.
With a Quick ratio value of 0.91, RIG is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.85% over the past year.
RIG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.93%.
RIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
EPS 1Y (TTM)51.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-256.05%
Revenue 1Y (TTM)16.93%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%8.44%
3.2 Future
RIG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.12% yearly.
RIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
EPS Next Y125.92%
EPS Next 2Y58.62%
EPS Next 3Y32.12%
EPS Next 5YN/A
Revenue Next Year10.87%
Revenue Next 2Y4.32%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 27.76 indicates a quite expensive valuation of RIG.
Based on the Price/Forward Earnings ratio, RIG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, RIG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.76 |
4.2 Price Multiples
65.00% of the companies in the same industry are cheaper than RIG, based on the Enterprise Value to EBITDA ratio.
83.33% of the companies in the same industry are more expensive than RIG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.83 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
The 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 32.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y58.62%
EPS Next 3Y32.12%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:RIG (11/6/2025, 3:04:08 PM)
3.8665
-0.03 (-0.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.81%
Inst Owner Change0.35%
Ins Owners1.53%
Ins Owner Change1.99%
Market Cap4.26B
Revenue(TTM)3.87B
Net Income(TTM)-2933000000
Analysts71.58
Price Target3.95 (2.16%)
Short Float %15.49%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)87.08%
Min EPS beat(2)74.16%
Max EPS beat(2)100%
EPS beat(4)2
Avg EPS beat(4)-1959.38%
Min EPS beat(4)-8000.81%
Max EPS beat(4)100%
EPS beat(8)5
Avg EPS beat(8)-955.52%
EPS beat(12)5
Avg EPS beat(12)-659.98%
EPS beat(16)7
Avg EPS beat(16)-494.31%
Revenue beat(2)2
Avg Revenue beat(2)0.71%
Min Revenue beat(2)0.53%
Max Revenue beat(2)0.88%
Revenue beat(4)3
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)1.28%
Revenue beat(8)3
Avg Revenue beat(8)-1.07%
Revenue beat(12)4
Avg Revenue beat(12)-1.19%
Revenue beat(16)5
Avg Revenue beat(16)-1.5%
PT rev (1m)-0.99%
PT rev (3m)-0.79%
EPS NQ rev (1m)9.26%
EPS NQ rev (3m)-6.39%
EPS NY rev (1m)96.58%
EPS NY rev (3m)55.64%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.76 | ||
| P/S | 1.1 | ||
| P/FCF | 8.83 | ||
| P/OCF | 7.02 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.14
Fwd EY3.6%
FCF(TTM)0.44
FCFY11.32%
OCF(TTM)0.55
OCFY14.24%
SpS3.52
BVpS7.34
TBVpS7.34
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.13% | ||
| ROE | -36.31% | ||
| ROCE | 4.31% | ||
| ROIC | 3.41% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 3.62% | ||
| OM | 15.51% | ||
| PM (TTM) | N/A | ||
| GM | 38.56% | ||
| FCFM | 12.44% |
ROA(3y)-3.46%
ROA(5y)-3.17%
ROE(3y)-6.63%
ROE(5y)-6.03%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.81%
GM growth 5Y4.14%
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 17.92% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.05 |
F-Score5
WACC7.32%
ROIC/WACC0.47
Cap/Depr(3y)57.33%
Cap/Depr(5y)44.04%
Cap/Sales(3y)16.71%
Cap/Sales(5y)13.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-256.05%
EPS Next Y125.92%
EPS Next 2Y58.62%
EPS Next 3Y32.12%
EPS Next 5YN/A
Revenue 1Y (TTM)16.93%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%8.44%
Revenue Next Year10.87%
Revenue Next 2Y4.32%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y247.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year556.4%
EBIT Next 3Y83.44%
EBIT Next 5YN/A
FCF growth 1Y229.57%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y148.36%
OCF growth 3Y-8.05%
OCF growth 5Y5.62%
TRANSOCEAN LTD / RIG FAQ
Can you provide the ChartMill fundamental rating for TRANSOCEAN LTD?
ChartMill assigns a fundamental rating of 3 / 10 to RIG.
What is the valuation status for RIG stock?
ChartMill assigns a valuation rating of 4 / 10 to TRANSOCEAN LTD (RIG). This can be considered as Fairly Valued.
What is the profitability of RIG stock?
TRANSOCEAN LTD (RIG) has a profitability rating of 3 / 10.
How sustainable is the dividend of TRANSOCEAN LTD (RIG) stock?
The dividend rating of TRANSOCEAN LTD (RIG) is 0 / 10 and the dividend payout ratio is 0%.