NYSE:RIG
$84.65
(2/9 11:28AM)
+1.5%
| Open | $84.75 |
Mkt Cap | $26.8 Billion |
| High | $85.68 |
52Wk High | $94.88 |
| Low | $83.53 |
52Wk Low | $49.20 |
| Volume | 1.6 Million |
Avg Vol 10D | 5.0 Million |
Ockham's Rating/Recommendation Summary
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RIG Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, RIG the high and low end of the Price to Sales per share ratios are 5.16x and 2.67x respectively.
Notice that RIG's current Price to Sales per share ratio is 2.23x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $83.99, RIG is 44% below where we would expect to see it. This will beneficially factor into our final analysis of RIG as it is not often that this stock sinks to these levels.
RIG Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. RIG is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for RIG, the current level of Cash Earnings compared to its historical levels helps identify where RIG is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 13.61 and a historical low Cash Earnings per share ratio of 7.12, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for RIG? From the Ockham perspective, we are looking specifically at RIG to see if the market is recognizing the huge disparity between RIG's past stock price to Cash Earnings ratio to today's levels. At a difference of 43% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at RIG. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
RIG Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for RIG to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
Transocean Ltd. Dividend News from Fox Business
For income investors, dividend news is obviously important. RIG's dividends were discussed recently on Fox Business.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Transocean Ltd. has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on RIG, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Bank of america such as TRANSOCEAN and. Why? Directory like big banks in general and thinkpad bad news is priced in at the present time and the yield curve such as it is and ... …”
Discussion Turns to RIG and Merger Talk on Mad Money
While we do not know the details relating to RIG and any possible deal, our RazorWire news analytics has noticed a mention of the stock near a conversation about M&A activity.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Transocean Ltd. has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on RIG, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… It's a ratio with both global santa fe soon taken over by TRANSOCEAN and by kbr short ily before a runoff of a 14 base. Both of those had a lower backlog to market cap ratio ... …”
Transocean Ltd. Was Talked About by Squawk On The Street
As always, the latest news on RIG is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk On The Street.
Based on our methodology, Transocean Ltd. should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; RIG has received less coverage from the financial media in business television and blogs.
“… they've seen idle time last year. We're looking at symbol ne and TRANSOCEAN rig. >> what happens if global growth is hit? …”
Earnings Discussion for Transocean Ltd. on Fast Money
Earnings or profits are the most key fundamental factor that an investor to be aware of for any stock. We noticed Fast Money discussed earnings on RIG.
We noticed recently that in comparison to all other stocks we analyze in the news; RIG has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Based on our methodology, Transocean Ltd. should hold some appeal to value investors as we view it as Undervalued.
“… TRANSOCEAN. Rigs. > > got to go with amgen. This son of a gun's going higher. > > thanks for watching. Tune in tomorrow and we're all over the after-hours action, ... …”
RIG's Valuation a Topic on Closing Bell
Closing Bell mentions some valuation metrics in regards to RIG; have a read at what they think from Ockham's RazorWire.
The Motley Fool CAPS data suggests that investors believe Transocean Ltd. will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, RIG has been less covered in the news compared to the rest of our universe of stocks. We consider RIG as Undervalued at the current price of $86.83. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… cyclical is TRANSOCEAN, symbol rig. Trading at about 8 1/2 times forward earnings. It's an $87 stock, pulled back to close $100 a few months ago. …”
Interested in RIG? See What the Pundits Said on Mad Money
News has broken via the television and viral blogs regarding RIG, so investors should take an interest in learning what was said.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on RIG, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Transocean Limited has actually sunk a bit in comparison to the others.
“… caller: TRANSOCEAN and > > this is interesting because there are some possibilities I could find a double here. Pepsico, what can I say? …”
Interested in RIG? See What the Pundits Said on Power Lunch
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Transocean Limited.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Transocean Limited has been talked about more than normal recently. We consider RIG as Undervalued at the current price of $80.10. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe Transocean Limited will beat the market in the foreseeable future.
“… TRANSOCEAN diamond offshofr, broken trend line support, i'd stay away. > > we're going to take a pause tonight, we check in with the charts and give you the best plays for the ... …”
Holding RIG Stock? See What Is Being Discussed on Mad Money
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Transocean Limited.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Transocean Limited has been talked about more than normal recently. The Motley Fool CAPS data suggests that investors believe Transocean Limited will beat the market in the foreseeable future. We consider RIG as Undervalued at the current price of $86.36. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… The king of oil service and TRANSOCEAN, the largest offshore driller. They were the first to pop their heads out of the trenches. …”
Transocean Limited Dividend News from Fox Business
If RIG's dividends are important to you, take a look at the news as they were the topic of conversation on Fox Business.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, RIG has been less covered in the news compared to the rest of our universe of stocks. We consider RIG as Undervalued at the current price of $89.75. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe Transocean Limited will beat the market in the foreseeable future.
“… TRANSOCEAN. In the sweet space of deep water drilling. Big integrated oil companies, national oil companies. As the global economy recovers we think they'll prosper as well bec... …”
Transocean Ltd. (RIG) Discussed on CNBC's Squawk Box
Transocean Ltd. is in the news. Find out how this impacts RIG trading on Ockham Research.
Mcdonald's 14 times, merck 10 times, pepsi, 15 times. Wellpoint, 8 times. TRANSOCEAN, offshore, eight there's plenty of value in the I think that I have no trouble finding value. The only trouble I have is hoich exposure I want to take on. There are risks along the way. We have a president that is advocating a program, social program that I don't relate to. I think be we're looking at marginal tax rates that are going up. Personally I think we're heading toward a vat tax, when they wake up and figure it out, you cannot tax the wealthy enough to close the deficit. The question is timing.
“… along the way. We have a president that is advocating a program, social program that I don't relate to. I think be we're looking at marginal tax rates that are going up. Personally I think we're heading toward a vat tax, when they wake up and figure it out, you cannot tax the wealthy enough to close the deficit. The question is timing. …”