TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
NYSE:RIG - New York Stock Exchange, Inc. - CH0048265513 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to RIG. RIG was compared to 63 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of RIG have multiple concerns. RIG has a decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of RIG (-3.62%) is worse than 74.60% of its industry peers.
With a Return On Equity value of -6.75%, RIG is not doing good in the industry: 69.84% of the companies in the same industry are doing better.
The Return On Invested Capital of RIG (1.96%) is worse than 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
The Operating Margin of RIG (11.75%) is better than 60.32% of its industry peers.
RIG has a better Gross Margin (37.44%) than 74.60% of its industry peers.
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
RIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RIG has more shares outstanding
The number of shares outstanding for RIG has been increased compared to 5 years ago.
Compared to 1 year ago, RIG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.11, we must say that RIG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.11, RIG is not doing good in the industry: 87.30% of the companies in the same industry are doing better.
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.
With a Debt to FCF ratio value of 20.27, RIG is not doing good in the industry: 60.32% of the companies in the same industry are doing better.
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 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 20.27 | ||
| Altman-Z | 0.11 |
ROIC/WACC0.28
WACC7.02%
2.3 Liquidity
A Current Ratio of 1.33 indicates that RIG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.33, RIG is not doing good in the industry: 79.37% of the companies in the same industry are doing better.
RIG has a Quick Ratio of 1.06. 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 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
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
Based on estimates for the next years, RIG will show a very strong growth in Earnings Per Share. The EPS will grow by 32.79% on average per year.
Based on estimates for the next years, RIG will show a small growth in Revenue. The Revenue will grow by 2.00% on average per year.
EPS Next Y119.79%
EPS Next 2Y59.53%
EPS Next 3Y32.79%
EPS Next 5YN/A
Revenue Next Year8.97%
Revenue Next 2Y3.96%
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
RIG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 17.33 indicates a rather expensive valuation of RIG.
Based on the Price/Forward Earnings ratio, RIG is valued a bit more expensive than 69.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, RIG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
73.02% of the companies in the same industry are cheaper than RIG, based on the Enterprise Value to EBITDA ratio.
RIG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RIG is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.87 | ||
| EV/EBITDA | 7.39 |
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 32.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.53%
EPS Next 3Y32.79%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.55
+0.06 (+2.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.59%
Inst Owner Change0.29%
Ins Owners1.52%
Ins Owner Change0.76%
Market Cap2.25B
Analysts71
Price Target4.25 (66.67%)
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)-7.6%
PT rev (3m)-15%
EPS NQ rev (1m)-87.53%
EPS NQ rev (3m)-82.78%
EPS NY rev (1m)10.62%
EPS NY rev (3m)-59.2%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.33 | ||
| P/S | 0.61 | ||
| P/FCF | 6.87 | ||
| P/OCF | 4.03 | ||
| P/B | 0.22 | ||
| P/tB | 0.22 | ||
| EV/EBITDA | 7.39 |
EPS(TTM)-0.34
EYN/A
EPS(NY)0.15
Fwd EY5.77%
FCF(TTM)0.37
FCFY14.56%
OCF(TTM)0.63
OCFY24.82%
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 | 0.11 |
F-Score5
WACC7.02%
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 Y119.79%
EPS Next 2Y59.53%
EPS Next 3Y32.79%
EPS Next 5YN/A
Revenue 1Y (TTM)24.47%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%18.74%
Revenue Next Year8.97%
Revenue Next 2Y3.96%
Revenue Next 3Y2%
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%