TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIG - CH0048265513 - Common Stock
3.89 USD
+0.05 (+1.3%)
3.92 USD
+0.03 (+0.77%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. RIG has a correct valuation and a medium 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.
In the past 5 years RIG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -18.13%, RIG is not doing good in the industry: 95.00% of the companies in the same industry are doing better.
RIG has a worse Return On Equity (-36.31%) than 88.33% of its industry peers.
RIG has a Return On Invested Capital of 3.41%. This is in the lower half of the industry: RIG underperforms 66.67% 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
Looking at the Operating Margin, with a value of 15.51%, RIG is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
RIG has a better Gross Margin (38.56%) than 76.67% 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.
RIG has more shares outstanding than it did 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
RIG has an Altman-Z score of 0.05. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
RIG has a worse Altman-Z score (0.05) than 85.00% 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.
The Debt to FCF ratio of RIG (12.91) is comparable to the rest of the industry.
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 | 0.05 |
ROIC/WACC0.47
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.08 indicates that RIG should not have too much problems paying its short term obligations.
RIG has a Current ratio of 1.08. This is amonst the worse of the industry: RIG underperforms 91.67% of its industry peers.
A Quick Ratio of 0.91 indicates that RIG may have some problems paying its short term obligations.
RIG's Quick ratio of 0.91 is on the low side compared to the rest of the industry. RIG is outperformed by 85.00% of its industry peers.
| 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.
The Revenue has grown by 16.93% in the past year. This is quite good.
RIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
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
The Earnings Per Share is expected to grow by 32.12% 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 1.92% on average per year.
EPS Next Y125.92%
EPS Next 2Y58.62%
EPS Next 3Y32.12%
EPS Next 5YN/A
Revenue Next Year10.87%
Revenue Next 2Y4.32%
Revenue Next 3Y1.92%
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
The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 27.93, RIG can be considered very expensive at the moment.
65.00% of the companies in the same industry are cheaper than RIG, based on the Price/Forward Earnings ratio.
RIG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.93 |
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 cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.89 | ||
| EV/EBITDA | 7.48 |
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 32.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y58.62%
EPS Next 3Y32.12%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.89
+0.05 (+1.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.81%
Inst Owner Change24.05%
Ins Owners1.53%
Ins Owner Change1.97%
Market Cap4.28B
Revenue(TTM)3.87B
Net Income(TTM)-2.93B
Analysts71.58
Price Target4.08 (4.88%)
Short Float %13.49%
Short Ratio2.44
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)4.52%
PT rev (3m)4.19%
EPS NQ rev (1m)3.04%
EPS NQ rev (3m)7.37%
EPS NY rev (1m)9.48%
EPS NY rev (3m)456.18%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.93 | ||
| P/S | 1.11 | ||
| P/FCF | 8.89 | ||
| P/OCF | 7.07 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.14
Fwd EY3.58%
FCF(TTM)0.44
FCFY11.25%
OCF(TTM)0.55
OCFY14.15%
SpS3.52
BVpS7.34
TBVpS7.34
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 | 0.05 |
F-Score5
WACC7.3%
ROIC/WACC0.47
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 Y125.92%
EPS Next 2Y58.62%
EPS Next 3Y32.12%
EPS Next 5YN/A
Revenue 1Y (TTM)16.93%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%8.44%
Revenue Next Year10.87%
Revenue Next 2Y4.32%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y247.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year556.4%
EBIT Next 3Y83.44%
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%.