NYSE:RIG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Transocean's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RIG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

RIG

-1.2%

US Energy Services

-2.0%

US Market


1 Year Return

-88.0%

RIG

-72.2%

US Energy Services

-15.1%

US Market

Return vs Industry: RIG underperformed the US Energy Services industry which returned -72.8% over the past year.

Return vs Market: RIG underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

RIGIndustryMarket
7 Day-6.0%-1.2%-2.0%
30 Day-65.4%-47.9%-19.7%
90 Day-84.4%-66.0%-23.2%
1 Year-88.0%-88.0%-71.3%-72.2%-13.4%-15.1%
3 Year-91.1%-91.1%-79.8%-82.6%10.9%3.7%
5 Year-93.2%-93.4%-81.6%-84.9%28.4%14.4%

Price Volatility Vs. Market

How volatile is Transocean's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.057x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RIG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RIG's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RIG is good value based on its PB Ratio (0.1x) compared to the US Energy Services industry average (0.3x).


Next Steps

Future Growth

How is Transocean forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

41.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RIG's revenue (2.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RIG's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Transocean performed over the past 5 years?

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RIG is currently unprofitable.

Growing Profit Margin: RIG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RIG is unprofitable, and losses have increased over the past 5 years at a rate of -14.9% per year.

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

Earnings vs Industry: RIG is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-34.4%).


Return on Equity

High ROE: RIG has a negative Return on Equity (-10.59%), as it is currently unprofitable.


Next Steps

Financial Health

How is Transocean's financial position?


Financial Position Analysis

Short Term Liabilities: RIG's short term assets ($3.6B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: RIG's short term assets ($3.6B) do not cover its long term liabilities ($10.5B).


Debt to Equity History and Analysis

Debt Level: RIG's debt to equity ratio (78%) is considered high.

Reducing Debt: RIG's debt to equity ratio has increased from 67.5% to 78% over the past 5 years.


Balance Sheet

Inventory Level: RIG has a high level of physical assets or inventory.

Debt Coverage by Assets: RIG's debt is not covered by short term assets (assets are 0.4x debt).


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: RIG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RIG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: RIG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RIG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Jeremy Thigpen (44yo)

5s

Tenure

US$8,550,795

Compensation

Mr. Jeremy D. Thigpen has been the Chief Executive Officer and President of Transocean Ltd. since April 22, 2015. Prior to joining Transocean, Mr. Thigpen served as the Chief Financial Officer and Senior V ...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD8.55M) is above average for companies of similar size in the US market ($USD3.20M).

Compensation vs Earnings: Jeremy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeremy Thigpen
President5yrsUS$8.55m0.14% $977.8k
Mark-Anthony Mey
Executive VP & CFO4.92yrsUS$3.87m0.067% $454.0k
Keelan Adamson
Executive VP & Chief Operations Officer1.83yrsUS$2.15m0.027% $183.7k
Howard Davis
Executive VP4.67yrsUS$2.93m0.033% $223.1k
Brady Long
Executive VP & General Counsel4.42yrsUS$2.79m0.034% $227.7k
David Tonnel
Senior VP & Chief Accounting Officer3yrsUS$1.87m0.022% $150.3k
Robert Vayda
VP of Corporate Finance & Treasurer4.67yrsno datano data
Paul Johnson
Senior Vice President of HSE1.67yrsno datano data
Bradley Alexander
Vice President of Investor Relations4.67yrsno datano data
Roddie Mackenzie
Senior Vice President of Marketing3.17yrsno datano data

4.5yrs

Average Tenure

49yo

Average Age

Experienced Management: RIG's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeremy Thigpen
President5yrsUS$8.55m0.14% $977.8k
Edward Muller
Independent Director12.42yrsUS$330.00k0.0021% $13.9k
Frederico C. Pinheiro Curado
Independent Director6.92yrsUS$320.00kno data
Chadwick Deaton
Independent Chairman of the Board0.92yrUS$330.00k0.0099% $67.1k
Vanessa C. Chang
Independent Director7.92yrsUS$320.00k0.0060% $40.6k
Vincent Intrieri
Independent Director5.92yrsUS$329.17k0.0016% $11.0k
Glyn Barker
Independent Director7.92yrsUS$355.00k0.0012% $8.0k
Frederik Mohn
Independent Director2.25yrsUS$311.67k5.39% $36.4m
Ek Kia Tan
Independent Director8.92yrsUS$340.00k0.014% $94.2k
Samuel Merksamer
Independent Director6.92yrsUS$320.00kno data

6.9yrs

Average Tenure

64yo

Average Age

Experienced Board: RIG's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RIG 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 30.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Transocean Ltd.
  • Ticker: RIG
  • Exchange: NYSE
  • Founded:
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$675.985m
  • Shares outstanding: 614.53m
  • Website: https://www.deepwater.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RIGNYSE (New York Stock Exchange)YesRegistered SharesUSUSDMay 1993
RIGNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFMay 1993
RIG NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNMay 1993
TOJDB (Deutsche Boerse AG)YesRegistered SharesDEEURMay 1993
0QOWLSE (London Stock Exchange)YesRegistered SharesGBUSDMay 1993
4826551SWX (SIX Swiss Exchange)YesRegistered SharesCHCHFMay 1993
RIGG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1 COM SHS CHF0.10BRBRLAug 2016

Biography

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The company primarily offers drilling rigs, related equipment, and work crews; and ultra-deepwater and harsh environment drilling services. As of February 12, 2020, it owned or had partial ownership interests in and operated a fleet of 45 mobile offshore drilling units that consist of 28 ultra-deepwater floaters, 14 harsh environment floaters, and 3 midwater floaters. The company serves integrated oil companies or their affiliates, as well as government-controlled oil companies and independent oil companies. Transocean Ltd. is based in Steinhausen, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 00:25
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.