(RIG) Transocean - Overview
Sector: Energy | Industry: Oil & Gas Drilling | Exchange: NYSE (USA) | Market Cap: 6.851m USD | Total Return: 136.7% in 12m
Avg Turnover: 213M
Qual. Beats: -1
Rev. Trend: 99.1%
Qual. Beats: 1
Warnings
Share dilution 17.3% YoY
Interest Coverage Ratio -3.0 is critical
Altman Z'' -0.94 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Rs Leader
Transocean Ltd. (RIG) is a Swiss-based offshore drilling contractor specializing in high-specification mobile offshore drilling units. The company provides the rigs, equipment, and crews necessary to execute drilling operations for integrated, national, and independent energy firms globally.
The company focuses on two primary asset classes: ultra-deepwater floaters and harsh environment semisubmersibles. These specialized vessels are designed to operate in water depths exceeding 10,000 feet or in extreme weather conditions, such as the North Sea, where standard equipment cannot function. The offshore drilling sector is characterized by high capital intensity and long-term contracts that are often sensitive to global crude oil price cycles.
For a detailed analysis of the companys valuation metrics, consider reviewing the latest data on ValueRay. Founded in 1926, Transocean remains a primary provider of the infrastructure required to access complex offshore hydrocarbon reserves.
- Day rates for ultra-deepwater drillships drive top-line revenue growth and margins
- Utilization levels of high-specification floaters dictate operational cash flow stability
- Global offshore exploration spending by major oil producers impacts contract backlogs
- Debt servicing costs and leverage ratios influence long-term equity valuation
- Crude oil price fluctuations determine capital allocation for offshore drilling projects
| Net Income: -2.77b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 3.53 > 1.0 |
| NWC/Revenue: 14.93% < 20% (prev 14.94%; Δ -0.02% < -1%) |
| CFO/TA 0.06 > 3% & CFO 887.0m > Net Income -2.77b |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.54 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.12b) vs 12m ago 17.33% < -2% |
| Gross Margin: 84.88% > 18% (prev 80.09%; Δ 4.79% > 0.5%) |
| Asset Turnover: 24.23% > 50% (prev 19.28%; Δ 4.95% > 0%) |
| Interest Coverage Ratio: -3.04 > 6 (EBIT TTM -2.18b / Interest Expense TTM 715.0m) |
| A: 0.04 (Total Current Assets 1.77b - Total Current Liabilities 1.15b) / Total Assets 15.2b |
| B: -0.49 (Retained Earnings -7.39b / Total Assets 15.2b) |
| C: -0.13 (EBIT TTM -2.18b / Avg Total Assets 17.1b) |
| D: 1.18 (Book Value of Equity 8.19b / Total Liabilities 6.96b) |
| Altman-Z'' = -0.94 = CCC |
| DSRI: 1.03 (Receivables 638.0m/551.0m, Revenue 4.14b/3.67b) |
| GMI: 0.94 (GM 80.09% / 84.88%) |
| AQI: -4.65 (AQ_t -0.27 / AQ_t-1 0.06) |
| SGI: 1.13 (Revenue 4.14b / 3.67b) |
| TATA: -0.24 (NI -2.77b - CFO 887.0m) / TA 15.2b) |
| Beneish M = -6.34 (Cap -4..+1) = AAA |
As of June 05, 2026, the stock is trading at USD 6.25 with a total of 20,267,367 shares traded.
Over the past week, the price has changed by +0.48%,
over one month by -9.16%,
over three months by -1.88% and
over the past year by +136.74%.
Transocean has received a consensus analysts rating of 3.23. Therefore, it is recommended to hold RIG.
- StrongBuy: 3
- Buy: 1
- Hold: 6
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 6.3 | 0.8% |
P/E Forward = 3.6417
P/S = 1.6548
P/B = 0.8363
P/EG = 1.1687
Revenue TTM = 4.14b USD
EBIT TTM = -2.18b USD
EBITDA TTM = -1.55b USD
Long Term Debt = 4.95b USD (from longTermDebt, last quarter)
Short Term Debt = 329.0m USD (from shortTermDebt, last quarter)
Debt = 5.59b USD (from shortLongTermDebtTotal, last quarter) + Leases 314.0m
Net Debt = 4.97b USD (calculated: Debt 5.59b - CCE 615.0m)
Enterprise Value = 11.8b USD (6.85b + Debt 5.59b - CCE 615.0m)
Interest Coverage Ratio = -3.04 (Ebit TTM -2.18b / Interest Expense TTM 715.0m)
EV/FCF = 14.85x (Enterprise Value 11.8b / FCF TTM 796.0m)
FCF Yield = 6.73% (FCF TTM 796.0m / Enterprise Value 11.8b)
FCF Margin = 19.23% (FCF TTM 796.0m / Revenue TTM 4.14b)
Net Margin = -66.79% (Net Income TTM -2.77b / Revenue TTM 4.14b)
Gross Margin = 84.88% ((Revenue TTM 4.14b - Cost of Revenue TTM 626.0m) / Revenue TTM)
Gross Margin QoQ = 86.77% (prev 85.91%)
Tobins Q-Ratio = 0.78 (Enterprise Value 11.8b / Total Assets 15.2b)
Interest Expense / Debt = 12.80% (Interest Expense 715.0m / Debt 5.59b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -1.72b (EBIT -2.18b * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.54 (Total Current Assets 1.77b / Total Current Liabilities 1.15b)
Debt / Equity = 0.68 (Debt 5.59b / totalStockholderEquity, last quarter 8.19b)
Debt / EBITDA = -3.21 (negative EBITDA) (Net Debt 4.97b / EBITDA -1.55b)
Debt / FCF = 6.25 (Net Debt 4.97b / FCF TTM 796.0m)
Total Stockholder Equity = 8.43b (last 4 quarters mean from totalStockholderEquity)
RoA = -16.18% (Net Income -2.77b / Total Assets 15.2b)
RoE = -32.79% (Net Income TTM -2.77b / Total Stockholder Equity 8.43b)
RoCE = -16.27% (EBIT -2.18b / Capital Employed (Equity 8.43b + L.T.Debt 4.95b))
RoIC = -12.17% (negative operating profit) (NOPAT -1.72b / Invested Capital 14.1b)
WACC = 10.30% (E(6.85b)/V(12.4b) * Re(10.45%) + D(5.59b)/V(12.4b) * Rd(12.80%) * (1-Tc(0.21)))
Discount Rate = 10.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 46.67 | Cagr: 15.74%
[DCF] Terminal Value 71.94% ; FCFF base≈608.8m ; Y1≈697.9m ; Y5≈1.03b
[DCF] Fair Price = 5.90 (EV 11.5b - Net Debt 4.97b = Equity 6.53b / Shares 1.11b; r=10.30% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.40 | # QB: -1
Revenue Correlation: 99.10 | Revenue CAGR: 18.80% | SUE: 3.18 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.02 | Chg30d=-67.37% | Revisions=-25% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.03 | Chg30d=N/A | Revisions=+0% | Analysts=6
EPS current Year (2026-12-31): EPS=0.15 | Chg30d=-29.93% | Revisions=-33% | GrowthEPS=+264.0% | GrowthRev=-2.8%
EPS next Year (2027-12-31): EPS=0.28 | Chg30d=+114.53% | Revisions=+56% | GrowthEPS=+89.6% | GrowthRev=-0.8%
[Analyst] Revisions Ratio: +56%