TRANSOCEAN LTD (RIG)
CH0048265513 - Common Stock
RIG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 60 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of RIG have multiple concerns. 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.
RIG had a positive operating cash flow in the past year.
In the past 5 years RIG always reported negative net income.
Each year in the past 5 years RIG had a positive operating cash flow.
1.2 Ratios
RIG's Return On Assets of -3.19% is on the low side compared to the rest of the industry. RIG is outperformed by 70.00% of its industry peers.
Looking at the Return On Equity, with a value of -6.09%, RIG is doing worse than 71.67% of the companies in the same industry.
RIG has a worse Return On Invested Capital (0.76%) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.19% | ||
| ROE | -6.09% | ||
| ROIC | 0.76% |
ROA(3y)-3.54%
ROA(5y)-3.68%
ROE(3y)-6.73%
ROE(5y)-7.15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 5.22%, RIG is doing worse than 70.00% of the companies in the same industry.
RIG has a Gross Margin of 33.93%. This is in the better half of the industry: RIG outperforms 66.67% of its industry peers.
RIG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.22% | ||
| PM (TTM) | N/A | ||
| GM | 33.93% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.5%
GM growth 5Y-5.85%
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.
The debt/assets ratio for RIG is higher compared to a year ago.
2.2 Solvency
RIG has an Altman-Z score of 0.16. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.16, RIG is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.64 indicates that RIG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, RIG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC0.12
WACC6.17%
2.3 Liquidity
A Current Ratio of 1.64 indicates that RIG should not have too much problems paying its short term obligations.
RIG has a worse Current ratio (1.64) than 60.00% of its industry peers.
RIG has a Quick Ratio of 1.34. 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 Quick ratio of 1.34. This is in the lower half of the industry: RIG underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
RIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.43%, which is quite impressive.
Looking at the last year, RIG shows a very strong growth in Revenue. The Revenue has grown by 22.84%.
RIG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.26% yearly.
EPS 1Y (TTM)80.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)22.84%
Revenue growth 3Y-3.51%
Revenue growth 5Y-1.26%
Sales Q2Q%32.4%
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 31.67% on average per year.
Based on estimates for the next years, RIG will show a quite strong growth in Revenue. The Revenue will grow by 11.16% on average per year.
EPS Next Y83.85%
EPS Next 2Y47.39%
EPS Next 3Y31.67%
EPS Next 5YN/A
Revenue Next Year21.82%
Revenue Next 2Y15.67%
Revenue Next 3Y11.16%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RIG. In the last year negative earnings were reported.
RIG is valuated rather expensively with a Price/Forward Earnings ratio of 23.80.
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 76.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RIG to the average of the S&P500 Index (23.95), we can say RIG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.8 |
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 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.84 |
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.
RIG's earnings are expected to grow with 31.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y47.39%
EPS Next 3Y31.67%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TRANSOCEAN LTD
NYSE:RIG (12/6/2024, 8:11:27 PM)
After market: 4.0201 0 (0%)4.02
-0.15 (-3.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.52B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.19% | ||
| ROE | -6.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.22% | ||
| PM (TTM) | N/A | ||
| GM | 33.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)80.43%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y83.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.84%
Revenue growth 3Y-3.51%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y