TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - NYSE:RIG - CH0048265513 - Common Stock
3.08 USD
-0.25 (-7.51%)
3.17 USD
+0.09 (+2.92%)
Taking everything into account, RIG scores 2 out of 10 in our fundamental rating. 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 is quite expensive at the moment. It does show a decent 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.
RIG has a worse Return On Equity (-16.08%) 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
With a decent Operating Margin value of 13.49%, RIG is doing good in the industry, outperforming 68.85% of the companies in the same industry.
RIG's Gross Margin of 37.82% is fine compared to the rest of the industry. RIG outperforms 73.77% of its industry peers.
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.
The number of shares outstanding for RIG has been increased compared to 1 year ago.
RIG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RIG has been reduced compared to a year ago.
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.
RIG's Altman-Z score of 0.14 is on the low side compared to the rest of the industry. RIG is outperformed by 86.89% 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.
With a Debt to FCF ratio value of 17.10, RIG is not doing good in the industry: 62.30% of the companies in the same industry are doing better.
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 | 0.14 |
ROIC/WACC0.34
WACC7.32%
2.3 Liquidity
RIG has a Current Ratio of 1.26. This is a normal value and indicates that RIG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.26, RIG is doing worse than 78.69% of the companies in the same industry.
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.
With a Quick ratio value of 0.99, RIG is not doing good in the industry: 78.69% of the companies in the same industry are doing better.
| 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.
The Revenue has grown by 23.26% in the past year. This is a very strong growth!
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
Based on estimates for the next years, RIG will show a very strong growth in Earnings Per Share. The EPS will grow by 31.41% on average per year.
RIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y112.05%
EPS Next 2Y47.13%
EPS Next 3Y31.41%
EPS Next 5YN/A
Revenue Next Year10.59%
Revenue Next 2Y4.14%
Revenue Next 3Y1.93%
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.
RIG is valuated quite expensively with a Price/Forward Earnings ratio of 69.31.
Based on the Price/Forward Earnings ratio, RIG is valued a bit more expensive than 73.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, RIG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.31 |
4.2 Price Multiples
67.21% 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 75.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.85 | ||
| EV/EBITDA | 7.76 |
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 31.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y47.13%
EPS Next 3Y31.41%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.08
-0.25 (-7.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.81%
Inst Owner Change-0.01%
Ins Owners1.53%
Ins Owner Change2.06%
Market Cap3.39B
Analysts71.58
Price Target3.91 (26.95%)
Short Float %17.68%
Short Ratio4.49
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)-1.97%
PT rev (3m)-4.4%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-25.84%
EPS NY rev (1m)158.43%
EPS NY rev (3m)-20.83%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.31 | ||
| P/S | 0.89 | ||
| P/FCF | 8.85 | ||
| P/OCF | 6.12 | ||
| P/B | 0.36 | ||
| P/tB | 0.36 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)-0.19
EYN/A
EPS(NY)0.04
Fwd EY1.44%
FCF(TTM)0.35
FCFY11.29%
OCF(TTM)0.5
OCFY16.34%
SpS3.45
BVpS8.5
TBVpS8.5
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 | 0.14 |
F-Score5
WACC7.32%
ROIC/WACC0.34
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 Y112.05%
EPS Next 2Y47.13%
EPS Next 3Y31.41%
EPS Next 5YN/A
Revenue 1Y (TTM)23.26%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%14.75%
Revenue Next Year10.59%
Revenue Next 2Y4.14%
Revenue Next 3Y1.93%
Revenue Next 5YN/A
EBIT growth 1Y2427.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year556.4%
EBIT Next 3Y83.44%
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%