TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
USA - NYSE:RIG - CH0048265513 - Common Stock
3.31 USD
+0.01 (+0.3%)
3.32 USD
+0.01 (+0.3%)
Taking everything into account, RIG scores 3 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 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.
Each year in the past 5 years RIG had a positive operating cash flow.
1.2 Ratios
RIG's Return On Assets of -8.44% is on the low side compared to the rest of the industry. RIG is outperformed by 77.05% of its industry peers.
Looking at the Return On Equity, with a value of -16.08%, RIG is doing worse than 78.69% of the companies in the same industry.
The Return On Invested Capital of RIG (2.49%) is worse than 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
Looking at the Operating Margin, with a value of 13.49%, RIG is in the better half of the industry, outperforming 70.49% of the companies in the same industry.
Looking at the Gross Margin, with a value of 37.82%, RIG is in the better half of the industry, outperforming 73.77% 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 | 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
RIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RIG has been increased compared to 1 year ago.
Compared to 5 years ago, RIG has more shares outstanding
Compared to 1 year ago, RIG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.12, we must say that RIG is in the distress zone and has some risk of bankruptcy.
RIG has a Altman-Z score of 0.12. This is amonst the worse of the industry: RIG underperforms 88.52% of its industry peers.
The Debt to FCF ratio of RIG is 17.10, which is on the high side as it means it would take RIG, 17.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.10, RIG is doing worse than 60.66% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that RIG is somewhat dependend on debt financing.
The Debt to Equity ratio of RIG (0.63) is worse than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 17.1 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.33
WACC7.44%
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.
The Current ratio of RIG (1.26) is worse than 78.69% of its industry peers.
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.
RIG's Quick ratio of 0.99 is on the low side compared to the rest of the industry. RIG is outperformed by 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.84% over the past year.
RIG shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.26%.
RIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
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
The Earnings Per Share is expected to grow by 35.25% on average over the next years. This is a very strong growth
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 Y104.66%
EPS Next 2Y59.58%
EPS Next 3Y35.25%
EPS Next 5YN/A
Revenue Next Year10.34%
Revenue Next 2Y3.93%
Revenue Next 3Y2%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 rather expensively with a Price/Forward Earnings ratio of 22.43.
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 73.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, RIG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.43 |
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 67.21% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RIG is valued cheaper than 81.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 7.54 |
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 35.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.58%
EPS Next 3Y35.25%
5. Dividend
5.1 Amount
RIG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.31
+0.01 (+0.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.06%
Inst Owner Change-1.71%
Ins Owners1.63%
Ins Owner Change-0.03%
Market Cap3.12B
Analysts71.58
Price Target3.99 (20.54%)
Short Float %17.48%
Short Ratio5.2
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)2.07%
PT rev (3m)-5.43%
EPS NQ rev (1m)-11.87%
EPS NQ rev (3m)-23.47%
EPS NY rev (1m)-69.36%
EPS NY rev (3m)-76.45%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.43 | ||
| P/S | 0.82 | ||
| P/FCF | 8.15 | ||
| P/OCF | 5.63 | ||
| P/B | 0.33 | ||
| P/tB | 0.33 | ||
| EV/EBITDA | 7.54 |
EPS(TTM)-0.19
EYN/A
EPS(NY)0.15
Fwd EY4.46%
FCF(TTM)0.41
FCFY12.27%
OCF(TTM)0.59
OCFY17.75%
SpS4.02
BVpS9.92
TBVpS9.92
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 | 0.12 |
F-Score5
WACC7.44%
ROIC/WACC0.33
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 Y104.66%
EPS Next 2Y59.58%
EPS Next 3Y35.25%
EPS Next 5YN/A
Revenue 1Y (TTM)23.26%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%14.75%
Revenue Next Year10.34%
Revenue Next 2Y3.93%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y2427.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year558.88%
EBIT Next 3Y86.24%
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%