TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIG - CH0048265513 - Common Stock
4.21 USD
-0.12 (-2.77%)
4.2099 USD
0 (0%)
Taking everything into account, RIG scores 3 out of 10 in our fundamental rating. RIG was compared to 62 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of RIG have multiple concerns. RIG has a decent growth rate and is not valued too expensively.
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 has a worse Return On Assets (-18.13%) than 91.94% of its industry peers.
With a Return On Equity value of -36.31%, RIG is not doing good in the industry: 85.48% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 3.41%, RIG perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
| 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
Looking at the Operating Margin, with a value of 15.51%, RIG is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
With a decent Gross Margin value of 38.56%, RIG is doing good in the industry, outperforming 79.03% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RIG is destroying value.
Compared to 1 year ago, RIG has more shares outstanding
Compared to 5 years ago, RIG has more shares outstanding
Compared to 1 year ago, RIG has an improved debt to assets ratio.
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.
The Altman-Z score of RIG (0.08) is worse than 87.10% 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.
RIG's Debt to FCF ratio of 12.91 is in line compared to the rest of the industry. RIG outperforms 43.55% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that RIG is somewhat dependend on debt financing.
RIG has a Debt to Equity ratio of 0.60. This is comparable to the rest of the industry: RIG outperforms 40.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Altman-Z | 0.08 |
ROIC/WACC0.46
WACC7.35%
2.3 Liquidity
A Current Ratio of 1.08 indicates that RIG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.08, RIG is not doing good in the industry: 88.71% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.91, RIG is not doing good in the industry: 82.26% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 2.68% on average over the past years.
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 27.69 indicates a quite expensive valuation of RIG.
The rest of the industry has a similar Price/Forward Earnings ratio as RIG.
RIG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RIG is on the same level as its industry peers.
RIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIG is cheaper than 85.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.62 | ||
| EV/EBITDA | 7.86 |
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 34.28% 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% |
4.21
-0.12 (-2.77%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners70.88%
Inst Owner Change0%
Ins Owners1.23%
Ins Owner Change2.48%
Market Cap4.64B
Revenue(TTM)3.87B
Net Income(TTM)-2.93B
Analysts71.58
Price Target4.11 (-2.38%)
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)0.53%
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 | 27.69 | ||
| P/S | 1.2 | ||
| P/FCF | 9.62 | ||
| P/OCF | 7.65 | ||
| P/B | 0.57 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.15
Fwd EY3.61%
FCF(TTM)0.44
FCFY10.39%
OCF(TTM)0.55
OCFY13.07%
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
WACC7.35%
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 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%.