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TRANSOCEAN LTD (RIG) Stock Fundamental Analysis

NYSE:RIG - New York Stock Exchange, Inc. - CH0048265513 - Common Stock - Currency: USD

2.8  -0.04 (-1.41%)

After market: 2.79 -0.01 (-0.36%)

Fundamental Rating

3

Overall RIG gets a fundamental rating of 3 out of 10. We evaluated RIG against 61 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of RIG have multiple concerns. RIG is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

RIG had negative earnings in the past year.
RIG had a positive operating cash flow in the past year.
In the past 5 years RIG always reported negative net income.
In the past 5 years RIG always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B

1.2 Ratios

With a Return On Assets value of -8.44%, RIG is not doing good in the industry: 78.69% of the companies in the same industry are doing better.
RIG has a Return On Equity of -16.08%. This is in the lower half of the industry: RIG underperforms 75.41% of its industry peers.
The Return On Invested Capital of RIG (2.49%) is worse than 77.05% of its industry peers.
Industry RankSector Rank
ROA -8.44%
ROE -16.08%
ROIC 2.49%
ROA(3y)-3.46%
ROA(5y)-3.17%
ROE(3y)-6.63%
ROE(5y)-6.03%
ROIC(3y)N/A
ROIC(5y)N/A
RIG Yearly ROA, ROE, ROICRIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

The Operating Margin of RIG (13.49%) is better than 70.49% of its industry peers.
With a decent Gross Margin value of 37.82%, RIG is doing good in the industry, outperforming 73.77% of the companies in the same industry.
In the last couple of years the Gross Margin of RIG has grown nicely.
Industry RankSector Rank
OM 13.49%
PM (TTM) N/A
GM 37.82%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.81%
GM growth 5Y4.14%
RIG Yearly Profit, Operating, Gross MarginsRIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

1

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.
The number of shares outstanding for RIG has been increased compared to 5 years ago.
RIG has a better debt/assets ratio than last year.
RIG Yearly Shares OutstandingRIG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
RIG Yearly Total Debt VS Total AssetsRIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

RIG has an Altman-Z score of 0.07. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.07, RIG is not doing good in the industry: 86.89% of the companies in the same industry are doing better.
The Debt to FCF ratio of RIG is 17.10, which is on the high side as it means it would take RIG, 17.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.10, RIG is doing worse than 60.66% of the companies in the same industry.
RIG has a Debt/Equity ratio of 0.63. This is a neutral value indicating RIG is somewhat dependend on debt financing.
RIG's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. RIG is outperformed by 63.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 17.1
Altman-Z 0.07
ROIC/WACC0.35
WACC7.14%
RIG Yearly LT Debt VS Equity VS FCFRIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.26 indicates that RIG should not have too much problems paying its short term obligations.
RIG has a worse Current ratio (1.26) than 81.97% of its industry peers.
RIG has a Quick Ratio of 1.26. 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 Quick ratio of 0.99. This is in the lower half of the industry: RIG underperforms 78.69% of its industry peers.
Industry RankSector Rank
Current Ratio 1.26
Quick Ratio 0.99
RIG Yearly Current Assets VS Current LiabilitesRIG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

4

3. Growth

3.1 Past

RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.84%, which is quite impressive.
RIG shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.26%.
The Revenue has been growing slightly by 2.68% on average over the past years.
EPS 1Y (TTM)69.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)23.26%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%14.75%

3.2 Future

The Earnings Per Share is expected to grow by 35.33% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.51% on average over the next years.
EPS Next Y115.21%
EPS Next 2Y59.85%
EPS Next 3Y35.33%
EPS Next 5YN/A
Revenue Next Year9.05%
Revenue Next 2Y4.02%
Revenue Next 3Y2.51%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
RIG Yearly Revenue VS EstimatesRIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B
RIG Yearly EPS VS EstimatesRIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 18.68, which indicates a rather expensive current valuation of RIG.
Based on the Price/Forward Earnings ratio, RIG is valued a bit more expensive than 70.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.94. RIG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 18.68
RIG Price Earnings VS Forward Price EarningsRIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

4.2 Price Multiples

65.57% of the companies in the same industry are cheaper than RIG, based on the Enterprise Value to EBITDA ratio.
RIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIG is cheaper than 83.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.46
EV/EBITDA 7.01
RIG Per share dataRIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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 35.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.85%
EPS Next 3Y35.33%

0

5. Dividend

5.1 Amount

RIG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

TRANSOCEAN LTD

NYSE:RIG (8/20/2025, 8:22:22 PM)

After market: 2.79 -0.01 (-0.36%)

2.8

-0.04 (-1.41%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)08-04 2025-08-04/amc
Earnings (Next)10-28 2025-10-28/amc
Inst Owners71.06%
Inst Owner Change-1.73%
Ins Owners1.63%
Ins Owner Change0.49%
Market Cap2.47B
Analysts71
Price Target3.91 (39.64%)
Short Float %19.04%
Short Ratio4.05
Dividend
Industry RankSector 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)1
Avg EPS beat(2)44.56%
Min EPS beat(2)-10.87%
Max EPS beat(2)100%
EPS beat(4)2
Avg EPS beat(4)-1952.92%
Min EPS beat(4)-8000.81%
Max EPS beat(4)100%
EPS beat(8)4
Avg EPS beat(8)-971.82%
EPS beat(12)5
Avg EPS beat(12)-660.73%
EPS beat(16)6
Avg EPS beat(16)-500.73%
Revenue beat(2)2
Avg Revenue beat(2)0.9%
Min Revenue beat(2)0.53%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-1.33%
Revenue beat(12)4
Avg Revenue beat(12)-1.09%
Revenue beat(16)4
Avg Revenue beat(16)-1.89%
PT rev (1m)-4.45%
PT rev (3m)-8.14%
EPS NQ rev (1m)-13.16%
EPS NQ rev (3m)-9.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.12%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 18.68
P/S 0.65
P/FCF 6.46
P/OCF 4.46
P/B 0.26
P/tB 0.26
EV/EBITDA 7.01
EPS(TTM)-0.19
EYN/A
EPS(NY)0.15
Fwd EY5.35%
FCF(TTM)0.43
FCFY15.49%
OCF(TTM)0.63
OCFY22.4%
SpS4.3
BVpS10.59
TBVpS10.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -8.44%
ROE -16.08%
ROCE 3.15%
ROIC 2.49%
ROICexc 2.55%
ROICexgc 2.55%
OM 13.49%
PM (TTM) N/A
GM 37.82%
FCFM 10.09%
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 Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 17.1
Debt/EBITDA 4.77
Cap/Depr 23.72%
Cap/Sales 4.51%
Interest Coverage 250
Cash Conversion 44.93%
Profit Quality N/A
Current Ratio 1.26
Quick Ratio 0.99
Altman-Z 0.07
F-Score5
WACC7.14%
ROIC/WACC0.35
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)69.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y115.21%
EPS Next 2Y59.85%
EPS Next 3Y35.33%
EPS Next 5YN/A
Revenue 1Y (TTM)23.26%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%14.75%
Revenue Next Year9.05%
Revenue Next 2Y4.02%
Revenue Next 3Y2.51%
Revenue Next 5YN/A
EBIT growth 1Y2427.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year558.88%
EBIT Next 3Y86.24%
EBIT Next 5YN/A
FCF growth 1Y383.7%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y6.95%
OCF growth 3Y-8.05%
OCF growth 5Y5.62%