TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - NYSE:RIG - CH0048265513 - Common Stock
3.32 USD
-0.14 (-4.05%)
3.34 USD
+0.02 (+0.6%)
We assign a fundamental rating of 3 out of 10 to RIG. RIG was compared to 61 industry peers in the Energy Equipment & Services industry. RIG may be in some trouble as it scores bad on both profitability and health. RIG has a correct valuation and a medium growth rate.
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.
In the past 5 years RIG always reported negative net income.
RIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RIG has a worse Return On Assets (-8.44%) than 77.05% of its industry peers.
The Return On Equity of RIG (-16.08%) is worse than 78.69% of its industry peers.
RIG's Return On Invested Capital of 2.49% is on the low side compared to the rest of the industry. RIG is outperformed by 77.05% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
RIG has a better Operating Margin (13.49%) than 70.49% of its industry peers.
Looking at the Gross Margin, with a value of 37.82%, RIG is in the better half of 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RIG is destroying value.
RIG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RIG has more shares outstanding
The debt/assets ratio for RIG has been reduced compared to a year ago.
2.2 Solvency
RIG has an Altman-Z score of 0.13. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
RIG's Altman-Z score of 0.13 is on the low side compared to the rest of the industry. RIG is outperformed by 88.52% of its industry peers.
RIG has a debt to FCF ratio of 17.10. This is a negative value and a sign of low solvency as RIG would need 17.10 years to pay back of 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 has a worse Debt to Equity ratio (0.63) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 17.1 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.33
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.26 indicates that RIG should not have too much problems paying its short term obligations.
RIG's Current ratio of 1.26 is on the low side compared to the rest of the industry. RIG is outperformed by 78.69% 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.
Looking at the Quick ratio, with a value of 0.99, RIG is doing worse than 78.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.99 |
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
RIG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.25% yearly.
RIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y104.66%
EPS Next 2Y59.58%
EPS Next 3Y35.25%
EPS Next 5YN/A
Revenue Next Year10.34%
Revenue Next 2Y3.93%
Revenue Next 3Y2%
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.
RIG is valuated rather expensively with a Price/Forward Earnings ratio of 22.50.
72.13% of the companies in the same industry are cheaper than RIG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RIG to the average of the S&P500 Index (22.86), we can say RIG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIG is valued a bit more expensive than 63.93% of the companies in the same industry.
RIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIG is cheaper than 80.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.18 | ||
| EV/EBITDA | 7.65 |
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 35.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.58%
EPS Next 3Y35.25%
5. Dividend
5.1 Amount
No dividends for RIG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.32
-0.14 (-4.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.06%
Inst Owner Change-1.71%
Ins Owners1.63%
Ins Owner Change-0.03%
Market Cap3.13B
Analysts71.58
Price Target3.99 (20.18%)
Short Float %17.48%
Short Ratio5.2
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)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)2.07%
PT rev (3m)-5.43%
EPS NQ rev (1m)-11.87%
EPS NQ rev (3m)-23.47%
EPS NY rev (1m)-69.36%
EPS NY rev (3m)-76.45%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.5 | ||
| P/S | 0.83 | ||
| P/FCF | 8.18 | ||
| P/OCF | 5.65 | ||
| P/B | 0.33 | ||
| P/tB | 0.33 | ||
| EV/EBITDA | 7.65 |
EPS(TTM)-0.19
EYN/A
EPS(NY)0.15
Fwd EY4.44%
FCF(TTM)0.41
FCFY12.23%
OCF(TTM)0.59
OCFY17.69%
SpS4.02
BVpS9.92
TBVpS9.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.13 |
F-Score5
WACC7.44%
ROIC/WACC0.33
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 Y104.66%
EPS Next 2Y59.58%
EPS Next 3Y35.25%
EPS Next 5YN/A
Revenue 1Y (TTM)23.26%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%14.75%
Revenue Next Year10.34%
Revenue Next 2Y3.93%
Revenue Next 3Y2%
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%