Transocean
Market Cap
US$676.0m
Last Updated
2020/04/03 00:25 UTC
Data Sources
Company Financials +
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
| RIG | Industry | Market | |
|---|---|---|---|
| 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
2 weeks ago | Simply Wall St
Should You Worry About Transocean Ltd.'s (NYSE:RIG) CEO Pay?1 month ago | Simply Wall St
Independent Chairman of the Board Chadwick Deaton Just Bought Shares In Transocean Ltd. (NYSE:RIG)1 month ago | Simply Wall St
Is Transocean (NYSE:RIG) Using Debt Sensibly?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5yrs | US$8.55m | 0.14% $977.8k | |
| Executive VP & CFO | 4.92yrs | US$3.87m | 0.067% $454.0k | |
| Executive VP & Chief Operations Officer | 1.83yrs | US$2.15m | 0.027% $183.7k | |
| Executive VP | 4.67yrs | US$2.93m | 0.033% $223.1k | |
| Executive VP & General Counsel | 4.42yrs | US$2.79m | 0.034% $227.7k | |
| Senior VP & Chief Accounting Officer | 3yrs | US$1.87m | 0.022% $150.3k | |
| VP of Corporate Finance & Treasurer | 4.67yrs | no data | no data | |
| Senior Vice President of HSE | 1.67yrs | no data | no data | |
| Vice President of Investor Relations | 4.67yrs | no data | no data | |
| Senior Vice President of Marketing | 3.17yrs | no data | no data |
4.5yrs
Average Tenure
49yo
Average Age
Experienced Management: RIG's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5yrs | US$8.55m | 0.14% $977.8k | |
| Independent Director | 12.42yrs | US$330.00k | 0.0021% $13.9k | |
| Independent Director | 6.92yrs | US$320.00k | no data | |
| Independent Chairman of the Board | 0.92yr | US$330.00k | 0.0099% $67.1k | |
| Independent Director | 7.92yrs | US$320.00k | 0.0060% $40.6k | |
| Independent Director | 5.92yrs | US$329.17k | 0.0016% $11.0k | |
| Independent Director | 7.92yrs | US$355.00k | 0.0012% $8.0k | |
| Independent Director | 2.25yrs | US$311.67k | 5.39% $36.4m | |
| Independent Director | 8.92yrs | US$340.00k | 0.014% $94.2k | |
| Independent Director | 6.92yrs | US$320.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RIG | NYSE (New York Stock Exchange) | Yes | Registered Shares | US | USD | May 1993 |
| RIGN | SWX (SIX Swiss Exchange) | Yes | Registered Shares | CH | CHF | May 1993 |
| RIG N | BMV (Bolsa Mexicana de Valores) | Yes | Registered Shares | MX | MXN | May 1993 |
| TOJ | DB (Deutsche Boerse AG) | Yes | Registered Shares | DE | EUR | May 1993 |
| 0QOW | LSE (London Stock Exchange) | Yes | Registered Shares | GB | USD | May 1993 |
| 4826551 | SWX (SIX Swiss Exchange) | Yes | Registered Shares | CH | CHF | May 1993 |
| RIGG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REPR 1 COM SHS CHF0.10 | BR | BRL | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 00:25 |
| End of Day Share Price | 2020/04/02 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.