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RIG

Transocean BMV:RIG N Stock Report

Last Price

US$86.19

Market Cap

US$56.3b

7D

12.2%

1Y

9.9%

Updated

07 May, 2022

Data

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

RIG N 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$86.19
52 Week HighUS$119.99
52 Week LowUS$56.00
Beta3
1 Month Change1.40%
3 Month Change11.44%
1 Year Change9.92%
3 Year Change-39.73%
5 Year Change-63.14%
Change since IPO-86.10%

Recent News & Updates

Shareholder Returns

RIG NMX Energy ServicesMX Market
7D12.2%0%0%
1Y9.9%0%0%

Return vs Industry: RIG N underperformed the MX Energy Services industry which returned 19.8% over the past year.

Return vs Market: RIG N exceeded the MX Market which returned 5.1% over the past year.

Price Volatility

Is RIG N's price volatile compared to industry and market?
RIG N volatility
RIG N Average Weekly Movement12.9%
Energy Services Industry Average Movement0%
Market Average Movement0%
10% most volatile stocks in MX Market0%
10% least volatile stocks in MX Market0%

Stable Share Price: RIG N is more volatile than 90% of MX stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: RIG N's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of MX stocks.

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?
RIG N fundamental statistics
Market CapUS$2.81b
Earnings (TTM)-US$668.00m
Revenue (TTM)US$2.49b

1.1x

P/S Ratio

-4.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RIG N 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 RIG N 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: RIG N (MX$86.19) is trading below our estimate of fair value (MX$215.32)

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


Price To Earnings Ratio

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

PE vs Market: RIG N is unprofitable, so we can't compare its PE Ratio to the MX market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RIG N is good value based on its PB Ratio (0.3x) compared to the XX Energy Services industry average (1.1x).


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: RIG N is forecast to remain unprofitable over the next 3 years.

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

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

Revenue vs Market: RIG N's revenue (7.9% per year) is forecast to grow faster than the MX market (6.1% per year).

High Growth Revenue: RIG N's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RIG N 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: RIG N is currently unprofitable.

Growing Profit Margin: RIG N is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: RIG N is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-7.6%).


Return on Equity

High ROE: RIG N 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: RIG N's short term assets ($2.3B) exceed its short term liabilities ($1.4B).

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


Debt to Equity History and Analysis

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

Reducing Debt: RIG N'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 RIG N has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RIG N 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 RIG N's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RIG N'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 RIG N's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: RIG N is not paying a notable dividend for the MX market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RIG N 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 ($USD13.72M) is above average for companies of similar size in the MX market ($USD2.59M).

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


Leadership Team

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


Board Members

Experienced Board: RIG N'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: RIG N
  • Exchange: BMV
  • Founded: 1926
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Implied Market Cap: US$2.806b
  • Listing Market Cap: US$56.350b
  • 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 Analysis2022/05/07 00:00
End of Day Share Price2022/05/05 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.