TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
NYSE:RIG - New York Stock Exchange, Inc. - CH0048265513 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to RIG. RIG was compared to 63 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.
RIG had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -3.62%, RIG is doing worse than 74.60% of the companies in the same industry.
RIG's Return On Equity of -6.75% is on the low side compared to the rest of the industry. RIG is outperformed by 69.84% of its industry peers.
RIG's Return On Invested Capital of 1.96% is on the low side compared to the rest of the industry. RIG is outperformed by 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.62% | ||
| ROE | -6.75% | ||
| ROIC | 1.96% |
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 11.75% is fine compared to the rest of the industry. RIG outperforms 60.32% of its industry peers.
With a decent Gross Margin value of 37.44%, RIG is doing good in the industry, outperforming 74.60% of the companies in the same industry.
In the last couple of years the Gross Margin of RIG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.75% | ||
| PM (TTM) | N/A | ||
| GM | 37.44% |
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.
The number of shares outstanding for RIG has been increased compared to 1 year ago.
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 0.12, 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 0.12, RIG is doing worse than 87.30% of the companies in the same industry.
The Debt to FCF ratio of RIG is 20.27, which is on the high side as it means it would take RIG, 20.27 years of fcf income to pay off all of its debts.
RIG has a Debt to FCF ratio of 20.27. This is comparable to the rest of the industry: RIG outperforms 41.27% of its industry peers.
RIG has a Debt/Equity ratio of 0.58. This is a neutral value indicating RIG is somewhat dependend on debt financing.
RIG's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. RIG is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 20.27 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.28
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.33 indicates that RIG should not have too much problems paying its short term obligations.
The Current ratio of RIG (1.33) is worse than 79.37% of its industry peers.
RIG has a Quick Ratio of 1.06. This is a normal value and indicates that RIG is financially healthy and should not expect problems in meeting its short term obligations.
RIG's Quick ratio of 1.06 is on the low side compared to the rest of the industry. RIG is outperformed by 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.03%, which is quite impressive.
RIG shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.47%.
RIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
EPS 1Y (TTM)46.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-233.33%
Revenue 1Y (TTM)24.47%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%18.74%
3.2 Future
The Earnings Per Share is expected to grow by 36.38% on average over the next years. This is a very strong growth
Based on estimates for the next years, RIG will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y115.21%
EPS Next 2Y60.73%
EPS Next 3Y36.38%
EPS Next 5YN/A
Revenue Next Year9.08%
Revenue Next 2Y4.13%
Revenue Next 3Y2.41%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
RIG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
RIG is valuated rather expensively with a Price/Forward Earnings ratio of 17.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RIG indicates a slightly more expensive valuation: RIG is more expensive than 68.25% of the companies listed in the same industry.
RIG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIG is valued a bit more expensive than the industry average as 69.84% of the companies are valued more cheaply.
RIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIG is cheaper than 84.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 7.52 |
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.
A more expensive valuation may be justified as RIG's earnings are expected to grow with 36.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.73%
EPS Next 3Y36.38%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.8
+0.14 (+5.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners70.65%
Inst Owner Change0.29%
Ins Owners1.63%
Ins Owner Change0.76%
Market Cap2.47B
Analysts71.58
Price Target4.09 (46.07%)
Short Float %19.21%
Short Ratio3.38
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)0
Avg EPS beat(2)-4005.84%
Min EPS beat(2)-8000.81%
Max EPS beat(2)-10.87%
EPS beat(4)1
Avg EPS beat(4)-1989.96%
Min EPS beat(4)-8000.81%
Max EPS beat(4)100%
EPS beat(8)3
Avg EPS beat(8)-985.1%
EPS beat(12)5
Avg EPS beat(12)-666.97%
EPS beat(16)5
Avg EPS beat(16)-507.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)1.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)1.28%
Revenue beat(8)1
Avg Revenue beat(8)-1.58%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)3
Avg Revenue beat(16)-2.17%
PT rev (1m)-3.86%
PT rev (3m)-15.83%
EPS NQ rev (1m)17.5%
EPS NQ rev (3m)-80.09%
EPS NY rev (1m)-23.12%
EPS NY rev (3m)36.02%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.78 | ||
| P/S | 0.67 | ||
| P/FCF | 7.54 | ||
| P/OCF | 4.42 | ||
| P/B | 0.24 | ||
| P/tB | 0.24 | ||
| EV/EBITDA | 7.52 |
EPS(TTM)-0.34
EYN/A
EPS(NY)0.16
Fwd EY5.62%
FCF(TTM)0.37
FCFY13.26%
OCF(TTM)0.63
OCFY22.6%
SpS4.15
BVpS11.56
TBVpS11.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.62% | ||
| ROE | -6.75% | ||
| ROCE | 2.48% | ||
| ROIC | 1.96% | ||
| ROICexc | 1.99% | ||
| ROICexgc | 1.99% | ||
| OM | 11.75% | ||
| PM (TTM) | N/A | ||
| GM | 37.44% | ||
| FCFM | 8.94% |
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
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 3Y3.81%
GM growth 5Y4.14%
F-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 20.27 | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 31.64% | ||
| Cap/Sales | 6.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 0.12 |
F-Score5
WACC7.01%
ROIC/WACC0.28
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)46.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-233.33%
EPS Next Y115.21%
EPS Next 2Y60.73%
EPS Next 3Y36.38%
EPS Next 5YN/A
Revenue 1Y (TTM)24.47%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%18.74%
Revenue Next Year9.08%
Revenue Next 2Y4.13%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
EBIT growth 1Y553.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year557.39%
EBIT Next 3Y87.42%
EBIT Next 5YN/A
FCF growth 1Y213.1%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y39.05%
OCF growth 3Y-8.05%
OCF growth 5Y5.62%