TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
NYSE:RIG - New York Stock Exchange, Inc. - CH0048265513 - Common Stock - Currency: USD
Overall RIG gets a fundamental rating of 3 out of 10. We evaluated RIG against 62 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.
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.
RIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.62%, RIG is doing worse than 75.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of -6.75%, RIG is doing worse than 74.19% of the companies in the same industry.
RIG has a worse Return On Invested Capital (1.96%) than 83.87% 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
Looking at the Operating Margin, with a value of 11.75%, RIG is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
RIG has a better Gross Margin (37.44%) than 72.58% of its industry peers.
RIG's Gross Margin has improved in the last couple of years.
| 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.
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.
2.2 Solvency
Based on the Altman-Z score of 0.13, we must say that RIG is in the distress zone and 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 85.48% of its industry peers.
RIG has a debt to FCF ratio of 20.27. This is a negative value and a sign of low solvency as RIG would need 20.27 years to pay back of all of its debts.
The Debt to FCF ratio of RIG (20.27) is worse than 64.52% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that RIG is somewhat dependend on debt financing.
The Debt to Equity ratio of RIG (0.58) is worse than 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 20.27 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.27
WACC7.16%
2.3 Liquidity
RIG has a Current Ratio of 1.33. This is a normal value and indicates that RIG is financially healthy and should not expect problems in meeting 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 82.26% of its industry peers.
A Quick Ratio of 1.06 indicates that RIG should not have too much problems paying its short term obligations.
The Quick ratio of RIG (1.06) is worse than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.03%, which is quite impressive.
RIG shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.47%.
RIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
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 41.04% yearly.
Based on estimates for the next years, RIG will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
EPS Next Y117.89%
EPS Next 2Y65.55%
EPS Next 3Y41.04%
EPS Next 5YN/A
Revenue Next Year9.02%
Revenue Next 2Y4.33%
Revenue Next 3Y2.66%
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.
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 13.85, RIG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RIG indicates a slightly more expensive valuation: RIG is more expensive than 64.52% of the companies listed in the same industry.
RIG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RIG indicates a slightly more expensive valuation: RIG is more expensive than 72.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RIG is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.46 | ||
| EV/EBITDA | 7.61 |
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 41.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y65.55%
EPS Next 3Y41.04%
5. Dividend
5.1 Amount
No dividends for RIG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.77
+0.16 (+6.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.59%
Inst Owner Change0.39%
Ins Owners1.52%
Ins Owner Change0.74%
Market Cap2.45B
Analysts71
Price Target4.25 (53.43%)
Short Float %16.96%
Short Ratio2.89
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)-9.74%
PT rev (3m)-23.31%
EPS NQ rev (1m)8.26%
EPS NQ rev (3m)46.32%
EPS NY rev (1m)59.93%
EPS NY rev (3m)-70.47%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.85 | ||
| P/S | 0.67 | ||
| P/FCF | 7.46 | ||
| P/OCF | 4.38 | ||
| P/B | 0.24 | ||
| P/tB | 0.24 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)-0.34
EYN/A
EPS(NY)0.2
Fwd EY7.22%
FCF(TTM)0.37
FCFY13.41%
OCF(TTM)0.63
OCFY22.85%
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 | 0.13 |
F-Score5
WACC7.16%
ROIC/WACC0.27
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 Y117.89%
EPS Next 2Y65.55%
EPS Next 3Y41.04%
EPS Next 5YN/A
Revenue 1Y (TTM)24.47%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%18.74%
Revenue Next Year9.02%
Revenue Next 2Y4.33%
Revenue Next 3Y2.66%
Revenue Next 5YN/A
EBIT growth 1Y553.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year561.35%
EBIT Next 3Y92.41%
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%