Logo image of RIG

TRANSOCEAN LTD (RIG) Stock Fundamental Analysis

NYSE:RIG - New York Stock Exchange, Inc. - CH0048265513 - Common Stock - Currency: USD

3.91  +0.08 (+2.09%)

After market: 3.87 -0.04 (-1.02%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to RIG. RIG was compared to 58 industry peers in the Energy Equipment & Services industry. RIG has a bad profitability rating. Also its financial health evaluation is rather negative. RIG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

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.
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.
RIG Yearly Net Income VS EBIT VS OCF VS FCFRIG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B

1.2 Ratios

With a Return On Assets value of -3.19%, RIG is not doing good in the industry: 74.14% of the companies in the same industry are doing better.
The Return On Equity of RIG (-6.09%) is worse than 74.14% of its industry peers.
RIG has a worse Return On Invested Capital (0.76%) than 86.21% of its industry peers.
Industry RankSector Rank
ROA -3.19%
ROE -6.09%
ROIC 0.76%
ROA(3y)-3.54%
ROA(5y)-3.68%
ROE(3y)-6.73%
ROE(5y)-7.15%
ROIC(3y)N/A
ROIC(5y)N/A
RIG Yearly ROA, ROE, ROICRIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20

1.3 Margins

The Operating Margin of RIG (5.22%) is worse than 72.41% of its industry peers.
RIG's Gross Margin of 33.93% is fine compared to the rest of the industry. RIG outperforms 67.24% of its industry peers.
RIG's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.22%
PM (TTM) N/A
GM 33.93%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.5%
GM growth 5Y-5.85%
RIG Yearly Profit, Operating, Gross MarginsRIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

More info and screens

1

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.
The number of shares outstanding for RIG has been increased compared to 1 year ago.
The number of shares outstanding for RIG has been increased compared to 5 years ago.
Compared to 1 year ago, RIG has a worse debt to assets ratio.
RIG Yearly Shares OutstandingRIG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
RIG Yearly Total Debt VS Total AssetsRIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.2 Solvency

RIG has an Altman-Z score of 0.15. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
RIG has a Altman-Z score of 0.15. This is amonst the worse of the industry: RIG underperforms 84.48% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that RIG is somewhat dependend on debt financing.
RIG has a worse Debt to Equity ratio (0.64) than 65.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF N/A
Altman-Z 0.15
ROIC/WACC0.12
WACC6.07%
RIG Yearly LT Debt VS Equity VS FCFRIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.64 indicates that RIG should not have too much problems paying its short term obligations.
RIG has a Current ratio of 1.64. This is in the lower half of the industry: RIG underperforms 60.34% of its industry peers.
RIG has a Quick Ratio of 1.34. 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 Quick ratio of 1.34. This is in the lower half of the industry: RIG underperforms 63.79% of its industry peers.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.34
RIG Yearly Current Assets VS Current LiabilitesRIG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

More info and screens

5

3. Growth

3.1 Past

RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.43%, which is quite impressive.
Looking at the last year, RIG shows a very strong growth in Revenue. The Revenue has grown by 22.84%.
RIG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.26% yearly.
EPS 1Y (TTM)80.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)22.84%
Revenue growth 3Y-3.51%
Revenue growth 5Y-1.26%
Sales Q2Q%32.4%

3.2 Future

The Earnings Per Share is expected to grow by 31.38% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.91% on average over the next years. This is quite good.
EPS Next Y84.28%
EPS Next 2Y47.12%
EPS Next 3Y31.38%
EPS Next 5YN/A
Revenue Next Year21.72%
Revenue Next 2Y15.56%
Revenue Next 3Y10.91%
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 accelerating.
RIG Yearly Revenue VS EstimatesRIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B
RIG Yearly EPS VS EstimatesRIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4

More info and screens

3

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 24.25, which indicates a rather expensive current valuation of RIG.
Based on the Price/Forward Earnings ratio, RIG is valued a bit more expensive than 70.69% of the companies in the same industry.
RIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 93.88, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 24.25
RIG Price Earnings VS Forward Price EarningsRIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RIG indicates a slightly more expensive valuation: RIG is more expensive than 79.31% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.66
RIG Per share dataRIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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 31.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y47.12%
EPS Next 3Y31.38%

More info and screens

0

5. Dividend

5.1 Amount

RIG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

TRANSOCEAN LTD

NYSE:RIG (1/30/2025, 8:04:00 PM)

After market: 3.87 -0.04 (-1.02%)

3.91

+0.08 (+2.09%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-10 2025-02-10/amc
Inst Owners71.19%
Inst Owner Change-0.04%
Ins Owners1.36%
Ins Owner Change1.82%
Market Cap3.42B
Analysts72.38
Price Target5.88 (50.38%)
Short Float %19.26%
Short Ratio6.43
Dividend
Industry RankSector 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)25.93%
Min EPS beat(2)-48.14%
Max EPS beat(2)100%
EPS beat(4)3
Avg EPS beat(4)48.34%
Min EPS beat(4)-48.14%
Max EPS beat(4)100%
EPS beat(8)3
Avg EPS beat(8)-10.28%
EPS beat(12)5
Avg EPS beat(12)-5.95%
EPS beat(16)5
Avg EPS beat(16)-12.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-4.01%
Max Revenue beat(4)-0.49%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)2
Avg Revenue beat(12)-2.07%
Revenue beat(16)3
Avg Revenue beat(16)-2.26%
PT rev (1m)-1.09%
PT rev (3m)-9.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-90.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.67%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 24.25
P/S 1.03
P/FCF N/A
P/OCF 10.1
P/B 0.33
P/tB 0.33
EV/EBITDA 10.66
EPS(TTM)-0.27
EYN/A
EPS(NY)0.16
Fwd EY4.12%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)0.39
OCFY9.9%
SpS3.78
BVpS11.68
TBVpS11.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.19%
ROE -6.09%
ROCE 0.96%
ROIC 0.76%
ROICexc 0.77%
ROICexgc 0.77%
OM 5.22%
PM (TTM) N/A
GM 33.93%
FCFM N/A
ROA(3y)-3.54%
ROA(5y)-3.68%
ROE(3y)-6.73%
ROE(5y)-7.15%
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 3Y-6.5%
GM growth 5Y-5.85%
F-Score6
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF N/A
Debt/EBITDA 7.02
Cap/Depr 59.02%
Cap/Sales 13.43%
Interest Coverage 250
Cash Conversion 36.57%
Profit Quality N/A
Current Ratio 1.64
Quick Ratio 1.34
Altman-Z 0.15
F-Score6
WACC6.07%
ROIC/WACC0.12
Cap/Depr(3y)53.14%
Cap/Depr(5y)44.63%
Cap/Sales(3y)17.02%
Cap/Sales(5y)14.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)80.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y84.28%
EPS Next 2Y47.12%
EPS Next 3Y31.38%
EPS Next 5YN/A
Revenue 1Y (TTM)22.84%
Revenue growth 3Y-3.51%
Revenue growth 5Y-1.26%
Sales Q2Q%32.4%
Revenue Next Year21.72%
Revenue Next 2Y15.56%
Revenue Next 3Y10.91%
Revenue Next 5YN/A
EBIT growth 1Y313.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1644.57%
EBIT Next 3Y179.86%
EBIT Next 5YN/A
FCF growth 1Y-239.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.49%
OCF growth 3Y-25.59%
OCF growth 5Y-21.72%