Transocean has moved -2.7% so far today on a volume of 9,801,608, compared to its average of 23,349,712. In contrast, the S&P 500 index moved -0.6%.
Over the last 52 weeks, the stock moved 65.4%, with a high of $5.56 and a low of $2.32. During this time, the stock outperformed the S&P 500 index by 85.5%. Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The mid-cap Energy company has 5,000 full time employees and is based in Steinhausen, Switzerland. Transocean has not offered any dividends in the last year.
Negative Earnings and a Deeply Leveraged Balance Sheet:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $3,018 | $3,088 | $3,152 | $2,556 |
| Revenue Growth | n/a | 2.3% | 2.1% | -18.9% |
| Gross Margins | 72.9% | 72.31% | 75.22% | 70.97% |
| Gross Margins Growth | n/a | -0.81% | 4.02% | -5.65% |
| Operating Margins | 7.06% | -3.24% | 5.96% | -1.96% |
| Operating Margins Growth | n/a | -145.89% | 283.95% | -132.89% |
| Earnings Per Share | $-4.27 | $-2.05 | $-0.92 | $-0.93 |
| EPS Growth | n/a | 51.99% | 55.12% | -1.09% |
| Free Cash Flow (MM) | $374 | $-47 | $133 | $367 |
| FCF Growth | n/a | -112.57% | 382.98% | 175.94% |
| Capital Expenditures (MM) | $-184 | $-387 | $-265 | $-208 |
| Net Debt / EBITDA | 5.91 | 6.45 | 5.69 | 6.57 |
The Market Is Fairly Valuing Transocean:
Compared to the Energy sector's average of 9.11, Transocean has a trailing twelve month price to earnings (P/E) ratio of -4.5 and, based on its Eps guidance of -0.18, an expected P/E ratio of -25.6.
The firm's price to earnings growth (PEG) is -1.53, because its current P/E ratio is negative — so in this case the PEG ratio is not a meaningful indicator of the company's valuation.
Transocean is undervalued in terms of its assets because its price to book (P/B) ratio is 0.3 compared to its sector average of 1.45.
Most of the Market Indicators on Transocean Are Negative:
11 analysts are following Transocean and have set target prices ranging from $3.5 to $8 per share. On average, they have given the company a rating of hold. At today's prices, RIG is trading -9.63% away from its average analyst target price of $5.09 per share, implying an analyst consensus of some upside potential for the stock.
The company has an unusually large proportion of its shares sold short since 18.5% of the company's shares are tied to short positions. Institutions own 58.3% of Transocean's shares, while the insider ownership rate stands at 7.22%. The biggest shareholder is the Vanguard Group, Inc. with a 8% stake in the company worth approximately $277,755,089.
