TRANSOCEAN LTD (RIG) Fundamental Analysis & Valuation

NYSE:RIG • CH0048265513

Current stock price

6.22 USD
-0.24 (-3.72%)
At close:
6.21 USD
-0.01 (-0.16%)
After Hours:

This RIG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. RIG Profitability Analysis

1.1 Basic Checks

  • RIG had negative earnings in the past year.
  • 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.
RIG Yearly Net Income VS EBIT VS OCF VS FCFRIG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B -3B

1.2 Ratios

  • With a Return On Assets value of -18.64%, RIG is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
  • The Return On Equity of RIG (-35.95%) is worse than 86.67% of its industry peers.
  • RIG's Return On Invested Capital of 3.89% is in line compared to the rest of the industry. RIG outperforms 45.00% of its industry peers.
Industry RankSector Rank
ROA -18.64%
ROE -35.95%
ROIC 3.89%
ROA(3y)-8.66%
ROA(5y)-6.38%
ROE(3y)-16.7%
ROE(5y)-12.23%
ROIC(3y)N/A
ROIC(5y)N/A
RIG Yearly ROA, ROE, ROICRIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -10 -20 -30

1.3 Margins

  • With a decent Operating Margin value of 17.78%, RIG is doing good in the industry, outperforming 78.33% of the companies in the same industry.
  • RIG's Operating Margin has improved in the last couple of years.
  • RIG's Gross Margin of 39.32% is fine compared to the rest of the industry. RIG outperforms 80.00% of its industry peers.
  • RIG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.78%
PM (TTM) N/A
GM 39.32%
OM growth 3YN/A
OM growth 5Y24.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.16%
GM growth 5Y1.47%
RIG Yearly Profit, Operating, Gross MarginsRIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100

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2

2. RIG Health Analysis

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
  • The number of shares outstanding for RIG has been increased compared to 5 years ago.
  • RIG has a worse debt/assets ratio than last year.
RIG Yearly Shares OutstandingRIG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
RIG Yearly Total Debt VS Total AssetsRIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 0.34, we must say that RIG is in the distress zone and has some risk of bankruptcy.
  • RIG has a worse Altman-Z score (0.34) than 81.67% of its industry peers.
  • The Debt to FCF ratio of RIG is 9.04, which is on the high side as it means it would take RIG, 9.04 years of fcf income to pay off all of its debts.
  • RIG has a Debt to FCF ratio (9.04) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.64 indicates that RIG is somewhat dependend on debt financing.
  • RIG has a worse Debt to Equity ratio (0.64) than 65.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 9.04
Altman-Z 0.34
ROIC/WACC0.54
WACC7.15%
RIG Yearly LT Debt VS Equity VS FCFRIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • RIG has a Current Ratio of 1.56. 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 (1.56) than 68.33% of its industry peers.
  • RIG has a Quick Ratio of 1.27. This is a normal value and indicates that RIG is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.27, RIG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.56
Quick Ratio 1.27
RIG Yearly Current Assets VS Current LiabilitesRIG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. RIG Growth Analysis

3.1 Past

  • RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.59%, which is quite impressive.
  • RIG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.51%.
  • Measured over the past years, RIG shows a small growth in Revenue. The Revenue has been growing by 4.70% on average per year.
EPS 1Y (TTM)92.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%122.22%
Revenue 1Y (TTM)12.51%
Revenue growth 3Y15.48%
Revenue growth 5Y4.7%
Sales Q2Q%9.56%

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 98.81% on average per year.
  • The Revenue is expected to grow by 0.09% on average over the next years.
EPS Next Y893.3%
EPS Next 2Y165.42%
EPS Next 3Y98.81%
EPS Next 5YN/A
Revenue Next Year-2.46%
Revenue Next 2Y-3.63%
Revenue Next 3Y0.09%
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.
RIG Yearly Revenue VS EstimatesRIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
RIG Yearly EPS VS EstimatesRIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 -1 2 3

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4

4. RIG Valuation Analysis

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 39.20, which means the current valuation is very expensive for RIG.
  • The rest of the industry has a similar Price/Forward Earnings ratio as RIG.
  • RIG is valuated expensively when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 39.2
RIG Price Earnings VS Forward Price EarningsRIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200 -300

4.2 Price Multiples

  • RIG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, RIG is valued cheaply inside the industry as 81.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.96
EV/EBITDA 8.72
RIG Per share dataRIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

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 98.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y165.42%
EPS Next 3Y98.81%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RIG Dividend Analysis

5.1 Amount

  • RIG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

RIG Fundamentals: All Metrics, Ratios and Statistics

TRANSOCEAN LTD

NYSE:RIG (3/20/2026, 8:20:51 PM)

After market: 6.21 -0.01 (-0.16%)

6.22

-0.24 (-3.72%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)02-19
Earnings (Next)04-27
Inst Owners72.9%
Inst Owner Change2.04%
Ins Owners1.19%
Ins Owner Change3.04%
Market Cap6.86B
Revenue(TTM)3.96B
Net Income(TTM)-2.92B
Analysts65.88
Price Target5.42 (-12.86%)
Short Float %18.47%
Short Ratio3.65
Dividend
Industry RankSector 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)1
Avg EPS beat(2)0.18%
Min EPS beat(2)-73.8%
Max EPS beat(2)74.16%
EPS beat(4)2
Avg EPS beat(4)22.37%
Min EPS beat(4)-73.8%
Max EPS beat(4)100%
EPS beat(8)4
Avg EPS beat(8)-972.5%
EPS beat(12)5
Avg EPS beat(12)-654.8%
EPS beat(16)7
Avg EPS beat(16)-495.08%
Revenue beat(2)1
Avg Revenue beat(2)0.44%
Min Revenue beat(2)0%
Max Revenue beat(2)0.88%
Revenue beat(4)3
Avg Revenue beat(4)0.67%
Min Revenue beat(4)0%
Max Revenue beat(4)1.28%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-1.13%
PT rev (1m)31.88%
PT rev (3m)31.39%
EPS NQ rev (1m)4.31%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)1.55%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)1.28%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 39.2
P/S 1.73
P/FCF 10.96
P/OCF 9.16
P/B 0.85
P/tB 0.85
EV/EBITDA 8.72
EPS(TTM)-0.02
EYN/A
EPS(NY)0.16
Fwd EY2.55%
FCF(TTM)0.57
FCFY9.13%
OCF(TTM)0.68
OCFY10.92%
SpS3.6
BVpS7.35
TBVpS7.35
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -18.64%
ROE -35.95%
ROCE 4.93%
ROIC 3.89%
ROICexc 4.07%
ROICexgc 4.07%
OM 17.78%
PM (TTM) N/A
GM 39.32%
FCFM 15.79%
ROA(3y)-8.66%
ROA(5y)-6.38%
ROE(3y)-16.7%
ROE(5y)-12.23%
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 5Y38.9%
ROICexc growth 3YN/A
ROICexc growth 5Y39.48%
OM growth 3YN/A
OM growth 5Y24.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.16%
GM growth 5Y1.47%
F-Score5
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 9.04
Debt/EBITDA 3.82
Cap/Depr 18.66%
Cap/Sales 3.1%
Interest Coverage 1.31
Cash Conversion 54.91%
Profit Quality N/A
Current Ratio 1.56
Quick Ratio 1.27
Altman-Z 0.34
F-Score5
WACC7.15%
ROIC/WACC0.54
Cap/Depr(3y)35.5%
Cap/Depr(5y)42.45%
Cap/Sales(3y)8.46%
Cap/Sales(5y)12.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%122.22%
EPS Next Y893.3%
EPS Next 2Y165.42%
EPS Next 3Y98.81%
EPS Next 5YN/A
Revenue 1Y (TTM)12.51%
Revenue growth 3Y15.48%
Revenue growth 5Y4.7%
Sales Q2Q%9.56%
Revenue Next Year-2.46%
Revenue Next 2Y-3.63%
Revenue Next 3Y0.09%
Revenue Next 5YN/A
EBIT growth 1Y89.52%
EBIT growth 3YN/A
EBIT growth 5Y30.26%
EBIT Next Year98.92%
EBIT Next 3Y24.49%
EBIT Next 5YN/A
FCF growth 1Y224.35%
FCF growth 3YN/A
FCF growth 5Y36.32%
OCF growth 1Y67.56%
OCF growth 3Y18.69%
OCF growth 5Y13.48%

TRANSOCEAN LTD / RIG Fundamental Analysis 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 893.3% 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%.