TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - NYSE:RIG - CH0048265513 - Common Stock
4.035 USD
+0.03 (+0.62%)
We assign a fundamental rating of 3 out of 10 to RIG. RIG was compared to 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
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.
In the past 5 years RIG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RIG (-18.13%) is worse than 95.00% of its industry peers.
Looking at the Return On Equity, with a value of -36.31%, RIG is doing worse than 88.33% of the companies in the same industry.
The Return On Invested Capital of RIG (3.41%) is worse than 70.00% 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
RIG has a better Operating Margin (15.51%) than 76.67% of its industry peers.
The Gross Margin of RIG (38.56%) is better than 76.67% of its industry peers.
In the last couple of years the Gross Margin of RIG has grown nicely.
| 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.
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 0.05, we must say that RIG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.05, RIG is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
RIG has a debt to FCF ratio of 12.91. This is a negative value and a sign of low solvency as RIG would need 12.91 years to pay back of all of its debts.
RIG's Debt to FCF ratio of 12.91 is in line compared to the rest of the industry. RIG outperforms 43.33% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that RIG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, RIG is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 12.91 | ||
| Altman-Z | 0.05 |
ROIC/WACC0.47
WACC7.24%
2.3 Liquidity
RIG has a Current Ratio of 1.08. 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 (1.08) than 91.67% of its industry peers.
RIG has a Quick Ratio of 1.08. 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 0.91. This is amonst the worse of the industry: RIG underperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.85%, which is quite impressive.
RIG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.93%.
The Revenue has been growing slightly by 2.68% on average over the past years.
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
RIG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.12% yearly.
RIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 28.97 indicates a quite expensive valuation of RIG.
RIG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RIG is more expensive than 63.33% of the companies in the same industry.
RIG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.97 |
4.2 Price Multiples
63.33% of the companies in the same industry are cheaper than RIG, based on the Enterprise Value to EBITDA ratio.
86.67% of the companies in the same industry are more expensive than RIG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.22 | ||
| EV/EBITDA | 7.58 |
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.
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 |
NYSE:RIG (11/14/2025, 2:58:05 PM)
4.035
+0.03 (+0.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.81%
Inst Owner Change3.47%
Ins Owners1.53%
Ins Owner Change1.96%
Market Cap4.44B
Revenue(TTM)3.87B
Net Income(TTM)-2.93B
Analysts71.58
Price Target3.95 (-2.11%)
Short Float %15.49%
Short Ratio3.36
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)1%
PT rev (3m)1.06%
EPS NQ rev (1m)9.02%
EPS NQ rev (3m)4.41%
EPS NY rev (1m)115.22%
EPS NY rev (3m)70.4%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.97 | ||
| P/S | 1.15 | ||
| P/FCF | 9.22 | ||
| P/OCF | 7.33 | ||
| P/B | 0.55 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 7.58 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.14
Fwd EY3.45%
FCF(TTM)0.44
FCFY10.85%
OCF(TTM)0.55
OCFY13.64%
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
WACC7.24%
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%.