TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - NYSE:RIG - CH0048265513 - Common Stock
3.47 USD
+0.07 (+2.06%)
Taking everything into account, RIG scores 3 out of 10 in our fundamental rating. RIG was compared to 61 industry peers in the Energy Equipment & Services industry. RIG has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
RIG had negative earnings in each of the past 5 years.
Each year in the past 5 years RIG had a positive operating cash flow.
1.2 Ratios
RIG has a worse Return On Assets (-8.44%) than 77.05% of its industry peers.
The Return On Equity of RIG (-16.08%) is worse than 78.69% of its industry peers.
RIG has a worse Return On Invested Capital (2.49%) than 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.44% | ||
| ROE | -16.08% | ||
| ROIC | 2.49% |
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
RIG's Operating Margin of 13.49% is fine compared to the rest of the industry. RIG outperforms 70.49% of its industry peers.
RIG has a Gross Margin of 37.82%. This is in the better half of the industry: RIG outperforms 73.77% of its industry peers.
In the last couple of years the Gross Margin of RIG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.49% | ||
| PM (TTM) | N/A | ||
| GM | 37.82% |
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
RIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RIG has more shares outstanding than it did 1 year ago.
RIG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RIG has an improved debt to assets ratio.
2.2 Solvency
RIG has an Altman-Z score of 0.13. 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 (0.13) than 88.52% of its industry peers.
The Debt to FCF ratio of RIG is 17.10, which is on the high side as it means it would take RIG, 17.10 years of fcf income to pay off all of its debts.
RIG has a worse Debt to FCF ratio (17.10) than 60.66% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that RIG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, RIG is not doing good in the industry: 63.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 17.1 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.33
WACC7.47%
2.3 Liquidity
RIG has a Current Ratio of 1.26. This is a normal value and indicates that RIG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RIG (1.26) is worse than 78.69% of its industry peers.
A Quick Ratio of 0.99 indicates that RIG may have some problems paying its short term obligations.
The Quick ratio of RIG (0.99) is worse than 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.84% over the past year.
RIG shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.26%.
Measured over the past years, RIG shows a small growth in Revenue. The Revenue has been growing by 2.68% on average per year.
EPS 1Y (TTM)69.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)23.26%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%14.75%
3.2 Future
RIG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.25% yearly.
RIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y104.66%
EPS Next 2Y59.58%
EPS Next 3Y35.25%
EPS Next 5YN/A
Revenue Next Year10.34%
Revenue Next 2Y3.93%
Revenue Next 3Y2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 23.52, which indicates a rather expensive current valuation of RIG.
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 73.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, RIG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIG is valued a bit more expensive than the industry average as 65.57% of the companies are valued more cheaply.
RIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIG is cheaper than 80.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.54 | ||
| EV/EBITDA | 7.61 |
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.
A more expensive valuation may be justified as RIG's earnings are expected to grow with 35.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.58%
EPS Next 3Y35.25%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:RIG (9/18/2025, 3:57:08 PM)
3.47
+0.07 (+2.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.06%
Inst Owner Change-1.71%
Ins Owners1.63%
Ins Owner Change-0.03%
Market Cap3.27B
Analysts71.58
Price Target3.99 (14.99%)
Short Float %17.48%
Short Ratio5.2
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)1
Avg EPS beat(2)44.56%
Min EPS beat(2)-10.87%
Max EPS beat(2)100%
EPS beat(4)2
Avg EPS beat(4)-1952.92%
Min EPS beat(4)-8000.81%
Max EPS beat(4)100%
EPS beat(8)4
Avg EPS beat(8)-971.82%
EPS beat(12)5
Avg EPS beat(12)-660.73%
EPS beat(16)6
Avg EPS beat(16)-500.73%
Revenue beat(2)2
Avg Revenue beat(2)0.9%
Min Revenue beat(2)0.53%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-1.33%
Revenue beat(12)4
Avg Revenue beat(12)-1.09%
Revenue beat(16)4
Avg Revenue beat(16)-1.89%
PT rev (1m)2.07%
PT rev (3m)-5.43%
EPS NQ rev (1m)-11.87%
EPS NQ rev (3m)-23.47%
EPS NY rev (1m)-69.36%
EPS NY rev (3m)-76.45%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.52 | ||
| P/S | 0.86 | ||
| P/FCF | 8.54 | ||
| P/OCF | 5.91 | ||
| P/B | 0.35 | ||
| P/tB | 0.35 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)-0.19
EYN/A
EPS(NY)0.15
Fwd EY4.25%
FCF(TTM)0.41
FCFY11.7%
OCF(TTM)0.59
OCFY16.93%
SpS4.02
BVpS9.92
TBVpS9.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.44% | ||
| ROE | -16.08% | ||
| ROCE | 3.15% | ||
| ROIC | 2.49% | ||
| ROICexc | 2.55% | ||
| ROICexgc | 2.55% | ||
| OM | 13.49% | ||
| PM (TTM) | N/A | ||
| GM | 37.82% | ||
| FCFM | 10.09% |
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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 17.1 | ||
| Debt/EBITDA | 4.77 | ||
| Cap/Depr | 23.72% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 0.13 |
F-Score5
WACC7.47%
ROIC/WACC0.33
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)69.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y104.66%
EPS Next 2Y59.58%
EPS Next 3Y35.25%
EPS Next 5YN/A
Revenue 1Y (TTM)23.26%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%14.75%
Revenue Next Year10.34%
Revenue Next 2Y3.93%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y2427.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year558.88%
EBIT Next 3Y86.24%
EBIT Next 5YN/A
FCF growth 1Y383.7%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y6.95%
OCF growth 3Y-8.05%
OCF growth 5Y5.62%