TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIG - CH0048265513 - Common Stock
4.34 USD
-0.04 (-0.91%)
4.35 USD
+0.01 (+0.23%)
Overall RIG gets a fundamental rating of 3 out of 10. We evaluated RIG against 62 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of RIG have multiple concerns. RIG has a correct valuation and a medium 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.
- 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's Return On Assets of -18.13% is on the low side compared to the rest of the industry. RIG is outperformed by 91.94% of its industry peers.
- RIG has a Return On Equity of -36.31%. This is amonst the worse of the industry: RIG underperforms 85.48% of its industry peers.
- RIG's Return On Invested Capital of 3.41% is in line compared to the rest of the industry. RIG outperforms 40.32% 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's Operating Margin of 15.51% is fine compared to the rest of the industry. RIG outperforms 75.81% of its industry peers.
- RIG has a Gross Margin of 38.56%. This is in the better half of the industry: RIG outperforms 79.03% 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
- RIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, RIG has more shares outstanding
- Compared to 5 years ago, RIG has more shares outstanding
- RIG has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.09, we must say that RIG is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of RIG (0.09) is worse than 88.71% 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.
- With a Debt to FCF ratio value of 12.91, RIG perfoms like the industry average, outperforming 43.55% of the companies in the same 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Altman-Z | 0.09 |
ROIC/WACC0.48
WACC7.17%
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.
- Looking at the Current ratio, with a value of 1.08, RIG is doing worse than 88.71% of the companies in the same industry.
- A Quick Ratio of 0.91 indicates that RIG may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.91, RIG is doing worse than 82.26% of the companies in the same industry.
| 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.
- RIG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.93%.
- 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
- Based on estimates for the next years, RIG will show a very strong growth in Earnings Per Share. The EPS will grow by 34.28% on average per year.
- The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y138.37%
EPS Next 2Y60.1%
EPS Next 3Y34.28%
EPS Next 5YN/A
Revenue Next Year11.12%
Revenue Next 2Y4.02%
Revenue Next 3Y2%
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
- The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 28.54 indicates a quite expensive valuation of RIG.
- RIG's Price/Forward Earnings ratio is in line with the industry average.
- RIG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.54 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as RIG.
- 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 | 9.92 | ||
| EV/EBITDA | 7.9 |
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 34.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.1%
EPS Next 3Y34.28%
5. Dividend
5.1 Amount
- RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
4.34
-0.04 (-0.91%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners70.88%
Inst Owner Change0.09%
Ins Owners1.23%
Ins Owner Change2.48%
Market Cap4.78B
Revenue(TTM)3.87B
Net Income(TTM)-2.93B
Analysts68.89
Price Target4.11 (-5.3%)
Short Float %15.56%
Short Ratio3.53
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)-0.43%
PT rev (3m)5.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.16%
EPS NY rev (1m)12.41%
EPS NY rev (3m)218.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.54 | ||
| P/S | 1.23 | ||
| P/FCF | 9.92 | ||
| P/OCF | 7.89 | ||
| P/B | 0.59 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.15
Fwd EY3.5%
FCF(TTM)0.44
FCFY10.08%
OCF(TTM)0.55
OCFY12.68%
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 | 0.09 |
F-Score5
WACC7.17%
ROIC/WACC0.48
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 Y138.37%
EPS Next 2Y60.1%
EPS Next 3Y34.28%
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 2Y4.02%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y247.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year568.78%
EBIT Next 3Y83.1%
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 of TRANSOCEAN LTD (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.
Can you provide the expected EPS growth for RIG stock?
The Earnings per Share (EPS) of TRANSOCEAN LTD (RIG) is expected to grow by 138.37% in the next year.
Is the dividend of TRANSOCEAN LTD sustainable?
The dividend rating of TRANSOCEAN LTD (RIG) is 0 / 10 and the dividend payout ratio is 0%.