TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIG - CH0048265513 - Common Stock
4.03 USD
+0.02 (+0.5%)
4.0365 USD
+0.01 (+0.16%)
RIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 62 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 correct valuation and a medium growth rate.
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.
In the past 5 years RIG always reported a positive cash flow from operatings.
1.2 Ratios
RIG has a worse Return On Assets (-18.13%) than 95.16% of its industry peers.
Looking at the Return On Equity, with a value of -36.31%, RIG is doing worse than 88.71% of the companies in the same industry.
RIG's Return On Invested Capital of 3.41% is on the low side compared to the rest of the industry. RIG is outperformed by 64.52% 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
With a decent Operating Margin value of 15.51%, RIG is doing good in the industry, outperforming 74.19% of the companies in the same industry.
RIG has a Gross Margin of 38.56%. This is in the better half of the industry: RIG outperforms 77.42% of its industry peers.
In the last couple of years the Gross Margin of RIG has grown nicely.
| 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.
RIG has more shares outstanding than it did 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 0.06. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RIG (0.06) is worse than 87.10% 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 (12.91) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.60 indicates that RIG is somewhat dependend on debt financing.
The Debt to Equity ratio of RIG (0.60) is worse than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Altman-Z | 0.06 |
ROIC/WACC0.45
WACC7.52%
2.3 Liquidity
A Current Ratio of 1.08 indicates that RIG should not have too much problems paying its short term obligations.
RIG has a Current ratio of 1.08. This is amonst the worse of the industry: RIG underperforms 90.32% of its industry peers.
A Quick Ratio of 0.91 indicates that RIG may have some problems paying 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 83.87% 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.
The Revenue has grown by 16.93% in the past year. This is quite good.
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)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.
RIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.06% yearly.
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
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.
The Price/Forward Earnings ratio is 25.51, which means the current valuation is very expensive for RIG.
RIG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.93, RIG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
RIG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RIG is valued cheaper than 85.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 7.58 |
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
No dividends for RIG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
4.03
+0.02 (+0.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners70.32%
Inst Owner Change24.13%
Ins Owners1.29%
Ins Owner Change2.48%
Market Cap4.44B
Revenue(TTM)3.87B
Net Income(TTM)-2.93B
Analysts71.58
Price Target4.12 (2.23%)
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 | 25.51 | ||
| P/S | 1.15 | ||
| P/FCF | 9.21 | ||
| P/OCF | 7.32 | ||
| P/B | 0.55 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 7.58 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.16
Fwd EY3.92%
FCF(TTM)0.44
FCFY10.86%
OCF(TTM)0.55
OCFY13.65%
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 | 0.06 |
F-Score5
WACC7.52%
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%.