TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
NYSE:RIG - New York Stock Exchange, Inc. - CH0048265513 - Common Stock - Currency: USD
RIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 59 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of RIG have multiple concerns. RIG is quite expensive at the moment. It does show a decent growth rate.
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
Looking at the Return On Assets, with a value of -2.64%, RIG is doing worse than 74.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of -4.98%, RIG is doing worse than 72.41% of the companies in the same industry.
With a Return On Invested Capital value of 1.66%, RIG is not doing good in the industry: 84.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.64% | ||
| ROE | -4.98% | ||
| ROIC | 1.66% |
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 10.56%, RIG is in line with its industry, outperforming 55.17% of the companies in the same industry.
The Gross Margin of RIG (37.60%) is better than 74.14% of its industry peers.
RIG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.56% | ||
| PM (TTM) | N/A | ||
| GM | 37.6% |
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
RIG has an Altman-Z score of 0.14. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
RIG has a worse Altman-Z score (0.14) than 81.03% of its industry peers.
The Debt to FCF ratio of RIG is 35.65, which is on the high side as it means it would take RIG, 35.65 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 35.65, RIG is not doing good in the industry: 63.79% of the companies in the same industry are doing better.
RIG has a Debt/Equity ratio of 0.60. This is a neutral value indicating RIG is somewhat dependend on debt financing.
The Debt to Equity ratio of RIG (0.60) is worse than 63.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 35.65 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.23
WACC7.19%
2.3 Liquidity
RIG has a Current Ratio of 1.47. This is a normal value and indicates that RIG is financially healthy and should not expect problems in meeting its short term obligations.
RIG has a worse Current ratio (1.47) than 72.41% of its industry peers.
A Quick Ratio of 1.21 indicates that RIG should not have too much problems paying its short term obligations.
RIG has a worse Quick ratio (1.21) than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.45%, which is quite impressive.
RIG shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.44%.
RIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
EPS 1Y (TTM)72.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)24.44%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%28.48%
3.2 Future
RIG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.32% yearly.
RIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.37% yearly.
EPS Next Y148.51%
EPS Next 2Y72.72%
EPS Next 3Y40.32%
EPS Next 5YN/A
Revenue Next Year9.16%
Revenue Next 2Y5.68%
Revenue Next 3Y6.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
RIG is valuated rather expensively with a Price/Forward Earnings ratio of 20.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RIG indicates a slightly more expensive valuation: RIG is more expensive than 68.97% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RIG to the average of the S&P500 Index (22.66), we can say RIG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.96 |
4.2 Price Multiples
72.41% of the companies in the same industry are cheaper than RIG, based on the Enterprise Value to EBITDA ratio.
RIG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RIG is cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.46 | ||
| EV/EBITDA | 7.99 |
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.
A more expensive valuation may be justified as RIG's earnings are expected to grow with 40.32% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y72.72%
EPS Next 3Y40.32%
5. Dividend
5.1 Amount
No dividends for RIG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:RIG (3/3/2025, 3:04:09 PM)
2.745
-0.21 (-6.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.59%
Inst Owner Change0.68%
Ins Owners1.52%
Ins Owner Change1.04%
Market Cap2.40B
Analysts70
Price Target5 (82.15%)
Short Float %19.98%
Short Ratio5.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.05
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3950.41%
Min EPS beat(2)-8000.81%
Max EPS beat(2)100%
EPS beat(4)2
Avg EPS beat(4)-1967.37%
Min EPS beat(4)-8000.81%
Max EPS beat(4)100%
EPS beat(8)3
Avg EPS beat(8)-993.39%
EPS beat(12)5
Avg EPS beat(12)-667.56%
EPS beat(16)5
Avg EPS beat(16)-507.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-4.01%
Max Revenue beat(4)-0.49%
Revenue beat(8)1
Avg Revenue beat(8)-1.72%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)3
Avg Revenue beat(16)-2.24%
PT rev (1m)-9.77%
PT rev (3m)-15.82%
EPS NQ rev (1m)-1016.78%
EPS NQ rev (3m)-1869.72%
EPS NY rev (1m)-19.92%
EPS NY rev (3m)-22.48%
Revenue NQ rev (1m)-1.56%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.96 | ||
| P/S | 0.68 | ||
| P/FCF | 12.46 | ||
| P/OCF | 5.38 | ||
| P/B | 0.23 | ||
| P/tB | 0.23 | ||
| EV/EBITDA | 7.99 |
EPS(TTM)-0.27
EYN/A
EPS(NY)0.13
Fwd EY4.77%
FCF(TTM)0.22
FCFY8.03%
OCF(TTM)0.51
OCFY18.59%
SpS4.02
BVpS11.74
TBVpS11.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.64% | ||
| ROE | -4.98% | ||
| ROCE | 2.1% | ||
| ROIC | 1.66% | ||
| ROICexc | 1.71% | ||
| ROICexgc | 1.71% | ||
| OM | 10.56% | ||
| PM (TTM) | N/A | ||
| GM | 37.6% | ||
| FCFM | 5.48% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 35.65 | ||
| Debt/EBITDA | 5.56 | ||
| Cap/Depr | 34.19% | ||
| Cap/Sales | 7.21% | ||
| Interest Coverage | 0.71 | ||
| Cash Conversion | 40.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 0.14 |
F-Score6
WACC7.19%
ROIC/WACC0.23
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)72.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y148.51%
EPS Next 2Y72.72%
EPS Next 3Y40.32%
EPS Next 5YN/A
Revenue 1Y (TTM)24.44%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%28.48%
Revenue Next Year9.16%
Revenue Next 2Y5.68%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
EBIT growth 1Y537.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year594.92%
EBIT Next 3Y87.28%
EBIT Next 5YN/A
FCF growth 1Y173.38%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y172.56%
OCF growth 3Y-8.05%
OCF growth 5Y5.62%