TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIG - CH0048265513 - Common Stock
4.26 USD
-0.02 (-0.47%)
Overall RIG gets a fundamental rating of 3 out of 10. We evaluated RIG against 60 industry peers in the Energy Equipment & Services industry. RIG may be in some trouble as it scores bad on both profitability and health. RIG is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years RIG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -18.13%, RIG is doing worse than 95.00% of the companies in the same industry.
The Return On Equity of RIG (-36.31%) is worse than 90.00% of its industry peers.
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 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
With a decent Operating Margin value of 15.51%, RIG is doing good in the industry, outperforming 76.67% of the companies in the same industry.
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
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.
The debt/assets ratio for RIG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.08, we must say that RIG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.08, RIG is doing worse than 86.67% of the companies in the same industry.
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 in line with its industry peers.
RIG has a Debt/Equity ratio of 0.60. This is a neutral value indicating RIG is somewhat dependend on debt financing.
RIG's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. RIG is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Altman-Z | 0.08 |
ROIC/WACC0.46
WACC7.43%
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 worse Current ratio (1.08) than 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 has a worse Quick ratio (0.91) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.85%, which is quite impressive.
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
Based on estimates for the next years, RIG will show a very strong growth in Earnings Per Share. The EPS will grow by 34.49% on average per year.
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
RIG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 26.97, which means the current valuation is very expensive for RIG.
RIG's Price/Forward Earnings is on the same level as the industry average.
RIG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.97 |
4.2 Price Multiples
RIG's Enterprise Value to EBITDA is on the same level as the industry average.
RIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIG is cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 7.81 |
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 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 | N/A |
NYSE:RIG (12/12/2025, 10:27:05 AM)
4.26
-0.02 (-0.47%)
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 Change2.49%
Market Cap4.69B
Revenue(TTM)3.87B
Net Income(TTM)-2.93B
Analysts71.58
Price Target4.12 (-3.29%)
Short Float %13.13%
Short Ratio2.33
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)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)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.97 | ||
| P/S | 1.21 | ||
| P/FCF | 9.73 | ||
| P/OCF | 7.74 | ||
| P/B | 0.58 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.16
Fwd EY3.71%
FCF(TTM)0.44
FCFY10.27%
OCF(TTM)0.55
OCFY12.92%
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 | 0.08 |
F-Score5
WACC7.43%
ROIC/WACC0.46
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%.