NYSE:RIG

Stock Analysis Report

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Market Cap

US$2.2b

Last Updated

2021/07/24 01:57 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Fair value with mediocre balance sheet.


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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: RIG's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

2.3%

RIG

-0.2%

US Energy Services

2.0%

US Market


1 Year Return

63.5%

RIG

40.1%

US Energy Services

39.1%

US Market

Return vs Industry: RIG exceeded the US Energy Services industry which returned 40.4% over the past year.

Return vs Market: RIG exceeded the US Market which returned 36.9% over the past year.


Shareholder returns

RIGIndustryMarket
7 Day2.3%-0.2%2.0%
30 Day-16.9%-14.7%2.3%
90 Day14.0%6.8%3.5%
1 Year63.5%63.5%44.6%40.1%41.3%39.1%
3 Year-72.3%-72.3%-51.4%-55.7%64.0%53.8%
5 Year-67.4%-67.4%-52.5%-60.6%123.8%99.0%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RIG ($3.58) is trading below our estimate of fair value ($15.63)

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


Price To Earnings Ratio

PE vs Industry: RIG is unprofitable, so we can't compare its PE Ratio to the US 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 (0.2x) compared to the US 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 11 analysts?

-25.2%

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 is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: RIG's revenue is forecast to decline over the next 3 years (-1.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Transocean performed over the past 5 years?

-21.4%

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 21.4% 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 (27.1%).


Return on Equity

High ROE: RIG has a negative Return on Equity (-2.43%), as it is currently unprofitable.


Financial Health

How is Transocean's financial position?


Financial Position Analysis

Short Term Liabilities: RIG's short term assets ($2.6B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: RIG's short term assets ($2.6B) do not cover its long term liabilities ($8.7B).


Debt to Equity History and Analysis

Debt Level: RIG's debt to equity ratio (62.2%) is considered high.

Reducing Debt: RIG's debt to equity ratio has increased from 52.2% to 62.2% 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 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RIG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 43.1% per year.


Dividend

What is Transocean 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 recent payouts.

High Dividend: Unable to evaluate RIG'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'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?

5.0yrs

Average management tenure


CEO

Jeremy Thigpen (46 yo)

6.25yrs

Tenure

US$6,491,804

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 ($USD6.49M) is above average for companies of similar size in the US market ($USD3.72M).

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


Leadership Team

Experienced Management: RIG's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: RIG's board of directors are considered experienced (7.2 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 not been meaningfully diluted in the past year.


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: 1926
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$2.210b
  • Shares outstanding: 617.30m
  • Website: https://www.deepwater.com

Number of Employees


Location

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

Listings


Biography

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts its drilling rigs, related equipment, and work crews to drill oil...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/24 01:57
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.