Transocean Ltd
NYSE:RIG

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Transocean Ltd Logo
Transocean Ltd
NYSE:RIG
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Price: 4.475 USD 3.11%
Market Cap: 3.9B USD
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Intrinsic Value

The intrinsic value of one RIG stock under the Base Case scenario is 10.19 USD. Compared to the current market price of 4.475 USD, Transocean Ltd is Undervalued by 56%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

RIG Intrinsic Value
10.19 USD
Undervaluation 56%
Intrinsic Value
Price
Base Case Scenario

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Transocean Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Transocean Ltd

Current Assets 2.3B
Cash & Short-Term Investments 435m
Receivables 594m
Other Current Assets 1.3B
Non-Current Assets 17.2B
Long-Term Investments 124m
PP&E 16B
Other Non-Current Assets 1.1B
Current Liabilities 1.4B
Accounts Payable 255m
Other Current Liabilities 1.2B
Non-Current Liabilities 7.9B
Long-Term Debt 6.5B
Other Non-Current Liabilities 1.3B
Efficiency

Earnings Waterfall
Transocean Ltd

Revenue
3.3B USD
Cost of Revenue
-2.2B USD
Gross Profit
1.1B USD
Operating Expenses
-951m USD
Operating Income
173m USD
Other Expenses
-796m USD
Net Income
-623m USD

Free Cash Flow Analysis
Transocean Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q3, Transocean achieved $948 million in drilling revenues with an adjusted EBITDA of $342 million. Despite a net loss of $494 million, cash flow from operations was strong at $194 million, reflecting a positive free cash flow of $136 million. Looking ahead, Q4 revenues are projected between $950 million and $970 million, while full-year guidance for 2025 indicates revenues of $3.85 billion to $4 billion. The company anticipates a reduction in debt by at least $715 million in 2025. Transocean's active fleet is mostly contracted through 2025, ensuring high utilization rates, with strong demand anticipated amid rising oil prices.

What is Earnings Call?
Fundamental Scores

RIG Profitability Score
Profitability Due Diligence

Transocean Ltd's profitability score is 40/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Revenue Growth Forecast
Positive 3-Years Revenue Growth
Exceptional 1-Year Revenue Growth
40/100
Profitability
Score

Transocean Ltd's profitability score is 40/100. The higher the profitability score, the more profitable the company is.

RIG Solvency Score
Solvency Due Diligence

Transocean Ltd's solvency score is 41/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Low D/E
Short-Term Solvency
Positive Net Debt
41/100
Solvency
Score

Transocean Ltd's solvency score is 41/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

RIG Price Targets Summary
Transocean Ltd

Wall Street analysts forecast RIG stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for RIG is 5.942 USD with a low forecast of 4.444 USD and a high forecast of 12.6 USD.

Lowest
Price Target
4.444 USD
1% Downside
Average
Price Target
5.942 USD
33% Upside
Highest
Price Target
12.6 USD
182% Upside
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Dividends

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Dividend Per Share
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0
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Shareholder Yield

Current shareholder yield for RIG is .

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Ownership

RIG Insider Trading
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Period Sold Bought Net
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Profile

Transocean Ltd Logo
Transocean Ltd

Country

Switzerland

Industry

N/A

Market Cap

3.9B USD

Dividend Yield

0%

Description

Transocean Ltd. engages in the provision of offshore contract drilling services for oil and gas wells. The company is headquartered in Steinhausen, Zug and currently employs 5,530 full-time employees. The company went IPO on 2008-12-19. The firm's primary business is to contract its drilling rigs, related equipment and work crews on a dayrate basis to drill oil and gas wells. As of February 9, 2017, it owned or had partial ownership interests in and operated 56 mobile offshore drilling units. As of February 9, 2017, its fleet consisted of 30 floaters, seven harsh environment floaters, three deepwater floaters, six midwater floaters and 10 high-specification jackups. As February 9, 2017, it also had four ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed. Its contract drilling services operations are spread across oil and gas exploration and development areas throughout the world. The firm's drilling fleet can be characterized as floaters, including drillships and semisubmersibles, and jackups.

Contact

ZUG
Steinhausen
Turmstrasse 30
+41417490500.0
www.deepwater.com

IPO

2008-12-19

Employees

5 530

Officers

CEO & Executive Director
Mr. Jeremy D. Thigpen
President & COO
Mr. Keelan I. Adamson
Executive VP & General Counsel
Mr. Brady K. Long
Executive VP & CFO
Mr. Robert Thaddeus Vayda
Senior VP & Chief Accounting Officer
Mr. Jason B. Pack B. Mgt., B. Sc., B.Sc., C.A., CPA
Senior Vice President of Technical Services
Mr. Paul Johnson
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Director of Investor Relations
Ms. Alison Johnson
Senior Vice President of Human Capital Management, Administrative Services & Communications
Ms. Janelle Daniel
Executive VP & Chief Commercial Officer
Mr. Roddie Mackenzie
Vice President & Treasurer
Mr. David Keddington
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See Also

Discover More
What is the Intrinsic Value of one RIG stock?

The intrinsic value of one RIG stock under the Base Case scenario is 10.19 USD.

Is RIG stock undervalued or overvalued?

Compared to the current market price of 4.475 USD, Transocean Ltd is Undervalued by 56%.

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