TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIG - CH0048265513 - Common Stock
3.8668 USD
+0.03 (+0.7%)
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. Both the profitability and financial health of RIG have multiple concerns. RIG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RIG has reported negative net income.
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's Return On Assets of -18.13% is on the low side compared to the rest of the industry. RIG is outperformed by 95.00% of its industry peers.
Looking at the Return On Equity, with a value of -36.31%, RIG is doing worse than 90.00% of the companies in the same industry.
RIG has a Return On Invested Capital of 3.41%. This is in the lower half of the industry: RIG underperforms 65.00% 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
RIG has a better Operating Margin (15.51%) than 76.67% of its industry peers.
RIG's Gross Margin of 38.56% is fine compared to the rest of the industry. RIG outperforms 78.33% 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.
RIG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RIG has more shares outstanding
RIG has a better debt/assets ratio than last year.
2.2 Solvency
RIG has an Altman-Z score of 0.04. 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 (0.04) than 86.67% of its industry peers.
The Debt to FCF ratio of RIG is 12.91, which is on the high side as it means it would take RIG, 12.91 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RIG (12.91) is comparable to the rest of the industry.
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 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Altman-Z | 0.04 |
ROIC/WACC0.45
WACC7.6%
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 has a Current ratio of 1.08. This is amonst the worse of the industry: RIG underperforms 90.00% of its industry peers.
RIG has a Quick Ratio of 1.08. This is a bad value and indicates that RIG is not financially healthy enough and could expect problems in meeting its short term obligations.
RIG's Quick ratio of 0.91 is on the low side compared to the rest of the industry. RIG is outperformed by 83.33% of its industry peers.
| 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.
Looking at the last year, RIG shows a quite strong growth in Revenue. The Revenue has grown by 16.93% in the last year.
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 34.49% yearly.
The Revenue is expected to grow by 2.06% on average over the next years.
EPS Next Y134.13%
EPS Next 2Y60.78%
EPS Next 3Y34.49%
EPS Next 5YN/A
Revenue Next Year11.12%
Revenue Next 2Y4.16%
Revenue Next 3Y2.06%
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.
With a Price/Forward Earnings ratio of 24.48, RIG is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as RIG.
The average S&P500 Price/Forward Earnings ratio is at 23.66. RIG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.48 |
4.2 Price Multiples
RIG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RIG is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 7.44 |
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 34.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.78%
EPS Next 3Y34.49%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:RIG (12/17/2025, 10:35:09 AM)
3.8668
+0.03 (+0.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners70.32%
Inst Owner Change24.11%
Ins Owners1.29%
Ins Owner Change2.48%
Market Cap4.26B
Revenue(TTM)3.87B
Net Income(TTM)-2.93B
Analysts71.58
Price Target4.12 (6.55%)
Short Float %15.12%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)4.47%
PT rev (3m)3.44%
EPS NQ rev (1m)3.8%
EPS NQ rev (3m)10.88%
EPS NY rev (1m)31.67%
EPS NY rev (3m)632.34%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.48 | ||
| P/S | 1.1 | ||
| P/FCF | 8.84 | ||
| P/OCF | 7.03 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 7.44 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.16
Fwd EY4.08%
FCF(TTM)0.44
FCFY11.32%
OCF(TTM)0.55
OCFY14.23%
SpS3.52
BVpS7.33
TBVpS7.33
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 | 0.04 |
F-Score5
WACC7.6%
ROIC/WACC0.45
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 Y134.13%
EPS Next 2Y60.78%
EPS Next 3Y34.49%
EPS Next 5YN/A
Revenue 1Y (TTM)16.93%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%8.44%
Revenue Next Year11.12%
Revenue Next 2Y4.16%
Revenue Next 3Y2.06%
Revenue Next 5YN/A
EBIT growth 1Y247.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year566.3%
EBIT Next 3Y83.34%
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%.