TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
NYSE:RIG - New York Stock Exchange, Inc. - CH0048265513 - Common Stock - Currency: USD
Taking everything into account, RIG scores 3 out of 10 in our fundamental rating. RIG was compared to 63 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 decent growth rate and is not valued too expensively.
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.
RIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RIG has a worse Return On Assets (-3.62%) than 74.60% of its industry peers.
Looking at the Return On Equity, with a value of -6.75%, RIG is doing worse than 69.84% of the companies in the same industry.
RIG's Return On Invested Capital of 1.96% is on the low side compared to the rest of the industry. RIG is outperformed by 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.62% | ||
| ROE | -6.75% | ||
| ROIC | 1.96% |
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's Operating Margin of 11.75% is fine compared to the rest of the industry. RIG outperforms 60.32% of its industry peers.
Looking at the Gross Margin, with a value of 37.44%, RIG is in the better half of the industry, outperforming 74.60% 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 | 11.75% | ||
| PM (TTM) | N/A | ||
| GM | 37.44% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
RIG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.14, we must say that RIG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.14, RIG is doing worse than 87.30% of the companies in the same industry.
The Debt to FCF ratio of RIG is 20.27, which is on the high side as it means it would take RIG, 20.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.27, RIG is in line with its industry, outperforming 41.27% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that RIG is somewhat dependend on debt financing.
RIG's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. RIG is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 20.27 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.28
WACC7.1%
2.3 Liquidity
A Current Ratio of 1.33 indicates that RIG should not have too much problems paying its short term obligations.
RIG's Current ratio of 1.33 is on the low side compared to the rest of the industry. RIG is outperformed by 79.37% of its industry peers.
A Quick Ratio of 1.06 indicates that RIG should not have too much problems paying its short term obligations.
RIG has a worse Quick ratio (1.06) than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.03% over the past year.
RIG shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.47%.
Measured over the past years, RIG shows a small growth in Revenue. The Revenue has been growing by 2.68% on average per year.
EPS 1Y (TTM)46.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-233.33%
Revenue 1Y (TTM)24.47%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%18.74%
3.2 Future
RIG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.38% yearly.
RIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y115.21%
EPS Next 2Y60.73%
EPS Next 3Y36.38%
EPS Next 5YN/A
Revenue Next Year9.08%
Revenue Next 2Y4.13%
Revenue Next 3Y2.41%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 17.65, the valuation of RIG can be described as rather expensive.
71.43% 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 (21.27), we can say RIG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIG is valued a bit more expensive than the industry average as 69.84% of the companies are valued more cheaply.
82.54% 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 | 7.49 | ||
| EV/EBITDA | 7.71 |
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 36.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.73%
EPS Next 3Y36.38%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.78
-0.13 (-4.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners70.65%
Inst Owner Change0.29%
Ins Owners1.63%
Ins Owner Change0.76%
Market Cap2.46B
Analysts71.58
Price Target4.09 (47.12%)
Short Float %19.34%
Short Ratio3.19
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)0
Avg EPS beat(2)-4005.84%
Min EPS beat(2)-8000.81%
Max EPS beat(2)-10.87%
EPS beat(4)1
Avg EPS beat(4)-1989.96%
Min EPS beat(4)-8000.81%
Max EPS beat(4)100%
EPS beat(8)3
Avg EPS beat(8)-985.1%
EPS beat(12)5
Avg EPS beat(12)-666.97%
EPS beat(16)5
Avg EPS beat(16)-507.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)1.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)1.28%
Revenue beat(8)1
Avg Revenue beat(8)-1.58%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)3
Avg Revenue beat(16)-2.17%
PT rev (1m)-3.86%
PT rev (3m)-15.83%
EPS NQ rev (1m)17.5%
EPS NQ rev (3m)-80.7%
EPS NY rev (1m)-23.12%
EPS NY rev (3m)-68.64%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.65 | ||
| P/S | 0.67 | ||
| P/FCF | 7.49 | ||
| P/OCF | 4.39 | ||
| P/B | 0.24 | ||
| P/tB | 0.24 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)-0.34
EYN/A
EPS(NY)0.16
Fwd EY5.66%
FCF(TTM)0.37
FCFY13.36%
OCF(TTM)0.63
OCFY22.77%
SpS4.15
BVpS11.56
TBVpS11.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.62% | ||
| ROE | -6.75% | ||
| ROCE | 2.48% | ||
| ROIC | 1.96% | ||
| ROICexc | 1.99% | ||
| ROICexgc | 1.99% | ||
| OM | 11.75% | ||
| PM (TTM) | N/A | ||
| GM | 37.44% | ||
| FCFM | 8.94% |
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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 20.27 | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 31.64% | ||
| Cap/Sales | 6.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 0.14 |
F-Score5
WACC7.1%
ROIC/WACC0.28
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)46.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-233.33%
EPS Next Y115.21%
EPS Next 2Y60.73%
EPS Next 3Y36.38%
EPS Next 5YN/A
Revenue 1Y (TTM)24.47%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%18.74%
Revenue Next Year9.08%
Revenue Next 2Y4.13%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
EBIT growth 1Y553.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year557.39%
EBIT Next 3Y87.42%
EBIT Next 5YN/A
FCF growth 1Y213.1%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y39.05%
OCF growth 3Y-8.05%
OCF growth 5Y5.62%