TRANSOCEAN LTD (RIG)

CH0048265513 - Common Stock

6.28  +0.03 (+0.48%)

After market: 6.2897 +0.01 (+0.15%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to RIG. RIG was compared to 66 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

1. Profitability

1.1 Basic Checks

RIG had negative earnings in the past year.
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 has a worse Return On Assets (-4.71%) than 84.85% of its industry peers.
The Return On Equity of RIG (-9.16%) is worse than 83.33% of its industry peers.
Industry RankSector Rank
ROA -4.71%
ROE -9.16%
ROIC N/A
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

RIG has a Gross Margin (29.87%) which is in line with its industry peers.
In the last couple of years the Gross Margin of RIG has declined.
RIG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 29.87%
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%

1

2. Health

2.1 Basic Checks

RIG does not have a ROIC to compare to the WACC, probably because it is not profitable.
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 a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.21, we must say that RIG is in the distress zone and has some risk of bankruptcy.
RIG has a Altman-Z score of 0.21. This is in the lower half of the industry: RIG underperforms 77.27% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that RIG is somewhat dependend on debt financing.
RIG has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: RIG underperforms 63.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Altman-Z 0.21
ROIC/WACCN/A
WACC5.85%

2.3 Liquidity

RIG has a Current Ratio of 1.52. 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 1.52, RIG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 1.22 indicates that RIG should not have too much problems paying its short term obligations.
RIG has a Quick ratio of 1.22. This is in the lower half of the industry: RIG underperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.22

4

3. Growth

3.1 Past

The earnings per share for RIG have decreased by -5.38% in the last year.
Looking at the last year, RIG shows a quite strong growth in Revenue. The Revenue has grown by 9.98% in the last year.
The Revenue has been decreasing by -1.26% on average over the past years.
EPS 1Y (TTM)-5.38%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q81.63%
Revenue 1Y (TTM)9.98%
Revenue growth 3Y-3.51%
Revenue growth 5Y-1.26%
Revenue growth Q2Q22.28%

3.2 Future

RIG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.48% yearly.
RIG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.69% yearly.
EPS Next Y95.48%
EPS Next 2Y59.01%
EPS Next 3Y36.48%
EPS Next 5YN/A
Revenue Next Year24.82%
Revenue Next 2Y17.83%
Revenue Next 3Y12.69%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

1

4. Valuation

4.1 Price/Earnings Ratio

RIG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year RIG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

RIG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. RIG is more expensive than 81.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.67

4.3 Compensation for Growth

A more expensive valuation may be justified as RIG's earnings are expected to grow with 36.48% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.01%
EPS Next 3Y36.48%

0

5. Dividend

5.1 Amount

RIG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

TRANSOCEAN LTD

NYSE:RIG (3/28/2024, 8:04:00 PM)

After market: 6.2897 +0.01 (+0.15%)

6.28

+0.03 (+0.48%)

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 Cap5.20B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE N/A
Fwd PE N/A
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 RankSector Rank
ROA -4.71%
ROE -9.16%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 29.87%
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 Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.52
Quick Ratio 1.22
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)
Growth
EPS 1Y (TTM)-5.38%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y95.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.98%
Revenue growth 3Y-3.51%
Revenue growth 5Y
Revenue growth 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