TRANSOCEAN LTD (RIG) Stock Fundamental Analysis
NYSE:RIG - New York Stock Exchange, Inc. - CH0048265513 - Common Stock - Currency: USD
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. 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
RIG had negative earnings in the past year.
In the past year RIG had a positive cash flow from operations.
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
RIG has a Return On Assets of -3.62%. This is in the lower half of the industry: RIG underperforms 75.41% of its industry peers.
RIG has a Return On Equity of -6.75%. This is in the lower half of the industry: RIG underperforms 70.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.96%, RIG is doing worse than 80.33% of the companies in the same industry.
| 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
RIG's Operating Margin of 11.75% is fine compared to the rest of the industry. RIG outperforms 60.66% of its industry peers.
RIG's Gross Margin of 37.44% 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 | 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.
RIG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RIG has more shares outstanding
The debt/assets ratio for RIG has been reduced compared to a year ago.
2.2 Solvency
RIG has an Altman-Z score of 0.14. This is a bad value and indicates that RIG is not financially healthy and even has some risk of bankruptcy.
RIG has a worse Altman-Z score (0.14) than 83.61% of its industry peers.
The Debt to FCF ratio of RIG is 20.27, which is on the high side as it means it would take RIG, 20.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.27, RIG is in line with its industry, outperforming 40.98% of the companies in the same industry.
RIG has a Debt/Equity ratio of 0.58. This is a neutral value indicating RIG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, RIG is not doing good in the industry: 60.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 20.27 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.27
WACC7.26%
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.
With a Current ratio value of 1.33, RIG is not doing good in the industry: 78.69% 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 Quick ratio of 1.06. This is in the lower half of the industry: RIG underperforms 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.03% over the past year.
RIG shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.47%.
Measured over the past years, RIG shows a small growth in Revenue. The Revenue has been growing by 2.68% on average per year.
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
The Earnings Per Share is expected to grow by 35.33% 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 2.24% on average per year.
EPS Next Y115.21%
EPS Next 2Y59.85%
EPS Next 3Y35.33%
EPS Next 5YN/A
Revenue Next Year9.08%
Revenue Next 2Y3.86%
Revenue Next 3Y2.24%
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 20.41, RIG is valued on the expensive side.
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 72.13% of the companies listed in the same industry.
RIG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.41 |
4.2 Price Multiples
RIG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RIG is more expensive than 68.85% of the companies in the same industry.
RIG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RIG is cheaper than 78.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 7.78 |
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.
A more expensive valuation may be justified as RIG's earnings are expected to grow with 35.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.85%
EPS Next 3Y35.33%
5. Dividend
5.1 Amount
No dividends for RIG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.06
+0.06 (+2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners70.65%
Inst Owner Change-0.04%
Ins Owners1.63%
Ins Owner Change0.77%
Market Cap2.70B
Analysts72
Price Target3.98 (30.07%)
Short Float %18.6%
Short Ratio3.32
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)-2.67%
PT rev (3m)-13.54%
EPS NQ rev (1m)-98.4%
EPS NQ rev (3m)-99.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.95%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.41 | ||
| P/S | 0.74 | ||
| P/FCF | 8.24 | ||
| P/OCF | 4.84 | ||
| P/B | 0.26 | ||
| P/tB | 0.26 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)-0.34
EYN/A
EPS(NY)0.15
Fwd EY4.9%
FCF(TTM)0.37
FCFY12.14%
OCF(TTM)0.63
OCFY20.68%
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 | 0.14 |
F-Score5
WACC7.26%
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 Y115.21%
EPS Next 2Y59.85%
EPS Next 3Y35.33%
EPS Next 5YN/A
Revenue 1Y (TTM)24.47%
Revenue growth 3Y11.3%
Revenue growth 5Y2.68%
Sales Q2Q%18.74%
Revenue Next Year9.08%
Revenue Next 2Y3.86%
Revenue Next 3Y2.24%
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%