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RIGN

Transocean SWX:RIGN Stock Report

Last Price

US$4.11

Market Cap

US$2.3b

7D

0%

1Y

71.3%

Updated

13 May, 2022

Data

Company Financials +
RIGN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health3/6
Dividends0/6

RIGN Stock Overview

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide.

Transocean Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Transocean
Historical stock prices
Current Share PriceUS$4.11
52 Week HighUS$0
52 Week LowUS$0
Beta3
1 Month Change0%
3 Month Change37.00%
1 Year Change71.25%
3 Year Change-46.55%
5 Year Change-59.71%
Change since IPO-95.82%

Recent News & Updates

Shareholder Returns

RIGNCH Energy ServicesCH Market
7D0%-1.1%-3.1%
1Y71.3%1.8%1.8%

Return vs Industry: RIGN exceeded the Swiss Energy Services industry which returned 1.8% over the past year.

Return vs Market: RIGN exceeded the Swiss Market which returned 1.8% over the past year.

Price Volatility

Is RIGN's price volatile compared to industry and market?
RIGN volatility
RIGN Average Weekly Movement72.9%
Energy Services Industry Average Movement8.1%
Market Average Movement5.0%
10% most volatile stocks in CH Market8.5%
10% least volatile stocks in CH Market2.5%

Stable Share Price: RIGN is more volatile than 90% of Swiss stocks over the past 3 months, typically moving +/- 73% a week.

Volatility Over Time: RIGN's weekly volatility has increased from 39% to 73% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19265,000Jeremy Thigpenhttps://www.deepwater.com

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts its mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. As of February 14, 2022, the company had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deep water and 10 harsh environment floaters.

Transocean Fundamentals Summary

How do Transocean's earnings and revenue compare to its market cap?
RIGN fundamental statistics
Market CapUS$2.33b
Earnings (TTM)-US$668.00m
Revenue (TTM)US$2.49b

0.9x

P/S Ratio

-3.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RIGN income statement (TTM)
RevenueUS$2.49b
Cost of RevenueUS$1.66b
Gross ProfitUS$827.00m
Other ExpensesUS$1.50b
Earnings-US$668.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.98
Gross Margin33.23%
Net Profit Margin-26.84%
Debt/Equity Ratio63.0%

How did RIGN perform over the long term?

See historical performance and comparison

Valuation

Is Transocean undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RIGN (CHF4.11) is trading below our estimate of fair value (CHF17.48)

Significantly Below Fair Value: RIGN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RIGN is unprofitable, so we can't compare its PE Ratio to the European Energy Services industry average.

PE vs Market: RIGN is unprofitable, so we can't compare its PE Ratio to the Swiss market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RIGN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RIGN is good value based on its PB Ratio (0.2x) compared to the XE Energy Services industry average (0.9x).


Future Growth

How is Transocean forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


53.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RIGN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RIGN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RIGN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RIGN's revenue (8.1% per year) is forecast to grow faster than the Swiss market (4.3% per year).

High Growth Revenue: RIGN's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RIGN is forecast to be unprofitable in 3 years.


Past Performance

How has Transocean performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


25.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RIGN is currently unprofitable.

Growing Profit Margin: RIGN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RIGN is unprofitable, but has reduced losses over the past 5 years at a rate of 25.9% per year.

Accelerating Growth: Unable to compare RIGN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RIGN is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-29.4%).


Return on Equity

High ROE: RIGN has a negative Return on Equity (-6%), as it is currently unprofitable.


Financial Health

How is Transocean's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RIGN's short term assets ($2.3B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: RIGN's short term assets ($2.3B) do not cover its long term liabilities ($7.9B).


Debt to Equity History and Analysis

Debt Level: RIGN's net debt to equity ratio (54.8%) is considered high.

Reducing Debt: RIGN's debt to equity ratio has increased from 49.1% to 63% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RIGN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RIGN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 24.8% per year.


Dividend

What is Transocean current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate RIGN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RIGN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RIGN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RIGN's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: RIGN is not paying a notable dividend for the Swiss market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RIGN has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Jeremy Thigpen (46 yo)

7.08yrs

Tenure

US$13,715,358

Compensation

Mr. Jeremy D. Thigpen has been the Chief Executive Officer of Transocean Ltd. since April 22, 2015 and served as President since April 22, 2015 until February 11, 2022. Prior to joining Transocean, Mr. Thi...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD13.72M) is above average for companies of similar size in the Swiss market ($USD1.32M).

Compensation vs Earnings: Jeremy's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: RIGN's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: RIGN's board of directors are considered experienced (9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Top Shareholders

Company Information

Transocean Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Transocean Ltd.
  • Ticker: RIGN
  • Exchange: SWX
  • Founded: 1926
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Implied Market Cap: US$2.329b
  • Listing Market Cap: US$2.331b
  • Shares outstanding: 681.06m
  • Website: https://www.deepwater.com

Number of Employees


Location

  • Transocean Ltd.
  • Turmstrasse 30
  • Steinhausen
  • Zug
  • 6312
  • Switzerland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/13 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.