TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIG - CH0048265513 - Common Stock
4.3 USD
+0.25 (+6.17%)
4.2991 USD
0 (-0.02%)
Overall RIG gets a fundamental rating of 3 out of 10. We evaluated RIG against 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
RIG had negative earnings in the past year.
In the past year RIG had a positive cash flow from operations.
In the past 5 years RIG always reported negative net income.
RIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RIG has a worse Return On Assets (-18.13%) than 95.00% of its industry peers.
With a Return On Equity value of -36.31%, RIG is not doing good in the industry: 88.33% of the companies in the same industry are doing better.
RIG has a worse Return On Invested Capital (3.41%) than 66.67% 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
The Operating Margin of RIG (15.51%) is better than 76.67% of its industry peers.
The Gross Margin of RIG (38.56%) is better than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RIG is destroying value.
Compared to 1 year ago, RIG has more shares outstanding
The number of shares outstanding for RIG has been increased compared to 5 years ago.
The debt/assets ratio for RIG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.08, we must say that RIG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RIG (0.08) is worse than 85.00% of its industry peers.
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.
RIG has a Debt to FCF ratio of 12.91. This is comparable to the rest of the industry: RIG outperforms 43.33% of its industry peers.
RIG has a Debt/Equity ratio of 0.60. This is a neutral value indicating RIG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, RIG is doing worse than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Altman-Z | 0.08 |
ROIC/WACC0.47
WACC7.32%
2.3 Liquidity
A Current Ratio of 1.08 indicates that RIG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, RIG is doing worse than 91.67% of the companies in the same industry.
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
RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.85%, which is quite impressive.
Looking at the last year, RIG shows a quite strong growth in Revenue. The Revenue has grown by 16.93% in the last year.
The Revenue has been growing slightly by 2.68% on average over the past years.
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
Based on estimates for the next years, RIG will show a very strong growth in Earnings Per Share. The EPS will grow by 32.12% on average per year.
The Revenue is expected to grow by 1.92% on average over the next years.
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
RIG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 30.87, RIG can be considered very expensive at the moment.
RIG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RIG is more expensive than 65.00% of the companies in the same industry.
RIG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.87 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than RIG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RIG is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 7.83 |
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 32.12% 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 |
4.3
+0.25 (+6.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.81%
Inst Owner Change24.05%
Ins Owners1.53%
Ins Owner Change1.97%
Market Cap4.73B
Revenue(TTM)3.87B
Net Income(TTM)-2.93B
Analysts71.58
Price Target4.08 (-5.12%)
Short Float %13.49%
Short Ratio2.44
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)4.52%
PT rev (3m)4.19%
EPS NQ rev (1m)3.04%
EPS NQ rev (3m)7.37%
EPS NY rev (1m)9.48%
EPS NY rev (3m)456.18%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.87 | ||
| P/S | 1.22 | ||
| P/FCF | 9.82 | ||
| P/OCF | 7.81 | ||
| P/B | 0.59 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 7.83 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.14
Fwd EY3.24%
FCF(TTM)0.44
FCFY10.18%
OCF(TTM)0.55
OCFY12.8%
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 | 0.08 |
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%.