(RIG) Transocean - Overview
Stock: Drilling Rigs, Floaters, Equipment, Crews
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 58.5% |
| Relative Tail Risk | -5.63% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.83 |
| Alpha | 15.97 |
| Character TTM | |
|---|---|
| Beta | 1.663 |
| Beta Downside | 2.592 |
| Drawdowns 3y | |
|---|---|
| Max DD | 75.80% |
| CAGR/Max DD | -0.13 |
Description: RIG Transocean January 12, 2026
Transocean Ltd. (NYSE:RIG) is a Swiss-based offshore contract drilling contractor that owns and operates a fleet of ultra-deepwater and harsh-environment floaters, leasing rigs, equipment, and crews to integrated majors, national oil companies, and independents worldwide. Founded in 1926 and headquartered in Steinhausen, the firm’s business model hinges on day-rate contracts that fluctuate with global oil prices and capital-expenditure cycles.
Key operational metrics (as of Q4 2023) include a fleet of 33 active rigs, an average utilization rate of roughly 78 % and a day-rate spread of $150-$250 k for ultra-deepwater units, reflecting the premium pricing for drilling in water depths >1,500 m. The company’s balance sheet carries $4.2 bn of long-term debt, giving a net-debt-to-EBITDA ratio near 3.5×, while cash flow generation remains highly sensitive to oil-price benchmarks such as Brent > $80 bbl.
Sector-wide, offshore drilling demand is driven by upstream capex trends, especially in the U.S. Gulf of Mexico and Brazil’s pre-salt plays, and is amplified by geopolitical supply shocks that push oil prices above breakeven levels for deep-water projects. For a deeper quantitative view of RIG’s valuation metrics, you might explore the analysis on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: -2.93b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 3.52 > 1.0 |
| NWC/Revenue: 4.70% < 20% (prev 27.53%; Δ -22.83% < -1%) |
| CFO/TA 0.04 > 3% & CFO 606.0m > Net Income -2.93b |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.08 > 1.5 & < 3 |
| Outstanding Shares: last quarter (911.0m) vs 12m ago -4.51% < -2% |
| Gross Margin: 50.13% > 18% (prev 0.35%; Δ 4978 % > 0.5%) |
| Asset Turnover: 21.71% > 50% (prev 16.98%; Δ 4.73% > 0%) |
| Interest Coverage Ratio: -1.46 > 6 (EBITDA TTM -664.0m / Interest Expense TTM 929.0m) |
Altman Z'' -2.92
| A: 0.01 (Total Current Assets 2.42b - Total Current Liabilities 2.23b) / Total Assets 16.17b |
| B: -0.46 (Retained Earnings -7.49b / Total Assets 16.17b) |
| C: -0.08 (EBIT TTM -1.36b / Avg Total Assets 17.84b) |
| D: -0.93 (Book Value of Equity -7.52b / Total Liabilities 8.10b) |
| Altman-Z'' Score: -2.92 = D |
Beneish M -3.50
| DSRI: 0.83 (Receivables 574.0m/594.0m, Revenue 3.87b/3.31b) |
| GMI: 0.69 (GM 50.13% / 34.71%) |
| AQI: 1.09 (AQ_t 0.07 / AQ_t-1 0.06) |
| SGI: 1.17 (Revenue 3.87b / 3.31b) |
| TATA: -0.22 (NI -2.93b - CFO 606.0m) / TA 16.17b) |
| Beneish M-Score: -3.50 (Cap -4..+1) = AA |
What is the price of RIG shares?
Over the past week, the price has changed by +8.45%, over one month by +24.48%, over three months by +38.21% and over the past year by +43.73%.
Is RIG a buy, sell or hold?
- StrongBuy: 4
- Buy: 1
- Hold: 8
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the RIG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 4.3 | -20.6% |
| Analysts Target Price | 4.3 | -20.6% |
| ValueRay Target Price | 5.1 | -5.2% |
RIG Fundamental Data Overview February 03, 2026
P/S = 1.4131
P/B = 0.6708
P/EG = -22.91
Revenue TTM = 3.87b USD
EBIT TTM = -1.36b USD
EBITDA TTM = -664.0m USD
Long Term Debt = 4.85b USD (from longTermDebt, last quarter)
Short Term Debt = 1.37b USD (from shortTermDebt, last quarter)
Debt = 6.22b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.97b USD (from netDebt column, last quarter)
Enterprise Value = 10.86b USD (5.47b + Debt 6.22b - CCE 833.0m)
Interest Coverage Ratio = -1.46 (Ebit TTM -1.36b / Interest Expense TTM 929.0m)
EV/FCF = 22.54x (Enterprise Value 10.86b / FCF TTM 482.0m)
FCF Yield = 4.44% (FCF TTM 482.0m / Enterprise Value 10.86b)
FCF Margin = 12.44% (FCF TTM 482.0m / Revenue TTM 3.87b)
Net Margin = -75.71% (Net Income TTM -2.93b / Revenue TTM 3.87b)
Gross Margin = 50.13% ((Revenue TTM 3.87b - Cost of Revenue TTM 1.93b) / Revenue TTM)
Gross Margin QoQ = 84.34% (prev 39.37%)
Tobins Q-Ratio = 0.67 (Enterprise Value 10.86b / Total Assets 16.17b)
Interest Expense / Debt = 9.81% (Interest Expense 610.0m / Debt 6.22b)
Taxrate = 21.0% (US default 21%)
NOPAT = -1.07b (EBIT -1.36b * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.08 (Total Current Assets 2.42b / Total Current Liabilities 2.23b)
Debt / Equity = 0.77 (Debt 6.22b / totalStockholderEquity, last quarter 8.08b)
Debt / EBITDA = -7.49 (negative EBITDA) (Net Debt 4.97b / EBITDA -664.0m)
Debt / FCF = 10.31 (Net Debt 4.97b / FCF TTM 482.0m)
Total Stockholder Equity = 9.48b (last 4 quarters mean from totalStockholderEquity)
RoA = -16.44% (Net Income -2.93b / Total Assets 16.17b)
RoE = -30.93% (Net Income TTM -2.93b / Total Stockholder Equity 9.48b)
RoCE = -9.46% (EBIT -1.36b / Capital Employed (Equity 9.48b + L.T.Debt 4.85b))
RoIC = -6.67% (negative operating profit) (NOPAT -1.07b / Invested Capital 16.06b)
WACC = 9.76% (E(5.47b)/V(11.70b) * Re(12.04%) + D(6.22b)/V(11.70b) * Rd(9.81%) * (1-Tc(0.21)))
Discount Rate = 12.04% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 6.11%
[DCF Debug] Terminal Value 62.73% ; FCFF base≈482.0m ; Y1≈316.4m ; Y5≈144.4m
Fair Price DCF = N/A (negative equity: EV 2.17b - Net Debt 4.97b = -2.80b; debt exceeds intrinsic value)
[DCF Warning] FCF declining rapidly (-40.0%), DCF may be unreliable
EPS Correlation: 43.25 | EPS CAGR: 18.51% | SUE: -0.38 | # QB: 0
Revenue Correlation: 94.28 | Revenue CAGR: 14.39% | SUE: 0.58 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.06 | Chg30d=-0.001 | Revisions Net=+1 | Analysts=6
EPS next Year (2026-12-31): EPS=0.15 | Chg30d=+0.015 | Revisions Net=+2 | Growth EPS=+156.0% | Growth Revenue=-2.1%