Transocean Ltd.
Transocean Ltd. Fundamental Analysis
Transocean Ltd. (RIG) shows moderate financial fundamentals with a PE ratio of -2.16, profit margin of -73.52%, and ROE of -32.62%. The company generates $3.7B in annual revenue with strong year-over-year growth of 24.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -46.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RIG's fundamental strength across five key dimensions:
Efficiency Score
WeakRIG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRIG trades at attractive valuation levels.
Growth Score
ExcellentRIG delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRIG maintains a strong and stable balance sheet.
Profitability Score
WeakRIG struggles to sustain strong margins.
Key Financial Metrics
Is RIG Expensive or Cheap?
P/E Ratio
RIG trades at -2.16 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RIG's PEG of -3.48 indicates potential undervaluation.
Price to Book
The market values Transocean Ltd. at 0.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.59 times EBITDA. This is generally considered low.
How Well Does RIG Make Money?
Net Profit Margin
For every $100 in sales, Transocean Ltd. keeps $-73.52 as profit after all expenses.
Operating Margin
Core operations generate 17.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-32.62 in profit for every $100 of shareholder equity.
ROA
Transocean Ltd. generates $-18.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Transocean Ltd. produces operating cash flow of $704.72M, showing steady but balanced cash generation.
Free Cash Flow
Transocean Ltd. generates strong free cash flow of $588.99M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.65 in free cash annually.
FCF Yield
RIG converts 10.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.33
vs 25 benchmark
ROA
Return on assets percentage
-0.19
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How RIG Stacks Against Its Sector Peers
| Metric | RIG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.16 | 21.19 | Better (Cheaper) |
| ROE | -32.62% | 948.00% | Weak |
| Net Margin | -73.52% | -73226.00% (disorted) | Weak |
| Debt/Equity | 0.70 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.56 | 6.31 | Neutral |
| ROA | -18.64% | -10913920.00% (disorted) | Weak |
RIG outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Transocean Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-17.83%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
70.67%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-5.34%
Industry Style: Cyclical, Value, Commodity
Declining