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Upturn AI SWOT - About
RIG 
Transocean Ltd (RIG)
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Upturn Advisory Summary
02/27/2025: RIG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -29.16% | Avg. Invested days 21 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 02/27/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.09B USD | Price to earnings Ratio - | 1Y Target Price 4.53 |
Price to earnings Ratio - | 1Y Target Price 4.53 | ||
Volume (30-day avg) 29016502 | Beta 2.29 | 52 Weeks Range 1.97 - 6.47 | Updated Date 04/7/2025 |
52 Weeks Range 1.97 - 6.47 | Updated Date 04/7/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.76 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -14.53% | Operating Margin (TTM) 16.81% |
Management Effectiveness
Return on Assets (TTM) 1.25% | Return on Equity (TTM) -4.95% |
Valuation
Trailing PE - | Forward PE 18.15 | Enterprise Value 8603677359 | Price to Sales(TTM) 0.59 |
Enterprise Value 8603677359 | Price to Sales(TTM) 0.59 | ||
Enterprise Value to Revenue 2.44 | Enterprise Value to EBITDA 14.78 | Shares Outstanding 883260992 | Shares Floating 684951754 |
Shares Outstanding 883260992 | Shares Floating 684951754 | ||
Percent Insiders 16.57 | Percent Institutions 71.24 |
Analyst Ratings
Rating 3.67 | Target Price 5.24 | Buy 1 | Strong Buy 5 |
Buy 1 | Strong Buy 5 | ||
Hold 8 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Transocean Ltd
Company Overview
History and Background
Transocean Ltd. was founded in 1953 as Southern Natural Gas Company. It has grown through numerous mergers and acquisitions to become a leading offshore drilling contractor. The company has evolved from primarily operating in the Gulf of Mexico to a global presence, specializing in deepwater and harsh environment drilling.
Core Business Areas
- Ultra-Deepwater Drilling: Transocean's primary focus is providing ultra-deepwater and harsh-environment drilling services to the oil and gas industry. This includes operating a fleet of advanced drilling rigs capable of operating in water depths of up to 12,000 feet.
- Harsh Environment Drilling: Transocean operates drilling rigs designed to withstand harsh weather conditions, such as those found in the North Sea and other arctic regions.
Leadership and Structure
The leadership team is headed by Jeremy Thigpen (CEO). The organizational structure is based on functional departments, with regional operating units overseeing drilling activities in various parts of the world.
Top Products and Market Share
Key Offerings
- Deepwater Drilling Services: Transocean provides drilling services using its fleet of drillships and semi-submersibles. Market share varies based on contract availability but generally represents a significant portion of the deepwater drilling market. Competitors include Valaris, Noble Corporation, and Diamond Offshore Drilling. Specific revenue data for this segment is not publicly broken down but comprises most of Transocean's revenue.
- Harsh Environment Drilling Services: Transocean operates specialized rigs capable of operating in harsh environments. This specialized offering commands a premium price. Competitors in this niche include Seadrill and Odfjell Drilling. Revenue from this segment is not separated, but it is significant.
Market Dynamics
Industry Overview
The offshore drilling industry is cyclical and heavily influenced by oil prices. Demand for drilling services rises with oil prices and declines when prices fall. The industry is also impacted by technological advancements, regulatory changes, and geopolitical events.
Positioning
Transocean is positioned as a leading provider of ultra-deepwater and harsh environment drilling services. Its competitive advantages include a modern fleet, experienced workforce, and global presence.
Total Addressable Market (TAM)
The global offshore drilling market is estimated to be worth hundreds of billions of dollars. Transocean is positioned to capture a substantial portion of this market with its high-specification rigs.
Upturn SWOT Analysis
Strengths
- Modern fleet of ultra-deepwater and harsh environment drilling rigs
- Global operational presence
- Strong safety record
- Experienced workforce
- Technological innovation
Weaknesses
- High debt levels
- Exposure to volatile oil prices
- Cyclical nature of the industry
- Dependence on a few major customers
- High operating costs
Opportunities
- Increase in oil prices driving demand for offshore drilling
- Development of new offshore oil and gas fields
- Retirement of older drilling rigs
- Expansion into new markets
- Technological advancements improving drilling efficiency
Threats
- Decline in oil prices reducing demand for offshore drilling
- Increased competition from other drilling contractors
- Regulatory changes increasing operating costs
- Geopolitical instability disrupting operations
- Technological disruptions
Competitors and Market Share
Key Competitors
- VAL
- NE
- DO
- SDRL
Competitive Landscape
Transocean faces intense competition from other drilling contractors. Its advantages include a modern fleet and global presence, but it also faces challenges related to debt levels and volatile oil prices.
Major Acquisitions
Songa Offshore
- Year: 2017
- Acquisition Price (USD millions): 1100
- Strategic Rationale: Expanded harsh environment drilling capabilities and presence in the North Sea.
Growth Trajectory and Initiatives
Historical Growth: Transocean's growth has been driven by acquisitions and organic expansion. However, the company has also experienced periods of decline due to downturns in the offshore drilling market.
Future Projections: Future growth is dependent on oil prices and demand for offshore drilling services. Analyst estimates vary widely, reflecting the uncertainty in the industry.
Recent Initiatives: Recent strategic initiatives include fleet rationalization (retiring older rigs) and focusing on high-specification rigs. They have been acquiring contracts and are looking to streamline their operations.
Summary
Transocean is a major player in the deepwater and harsh environment drilling sector, boasting a modern fleet and global operations. High debt and dependence on oil prices pose significant challenges. Fleet rationalization and new contracts demonstrate positive steps, however, the cyclical industry and strong competition requires continued vigilance.
Similar Companies
DO
Diamond Offshore Drilling Inc
DO
Diamond Offshore Drilling Inc
HAL
Halliburton Company
HAL
Halliburton Company
NE
Noble Corporation plc
NE
Noble Corporation plc
SLB
Schlumberger NV
SLB
Schlumberger NV
VAL
Valaris Ltd
VAL
Valaris Ltd
Sources and Disclaimers
Data Sources:
- Transocean Ltd. Investor Relations
- Industry Reports (e.g., Westwood Global Energy)
- Financial News Outlets (e.g., Bloomberg, Reuters)
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly, and past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Transocean Ltd
Exchange NYSE | Headquaters - | ||
IPO Launch date 1993-05-27 | CEO & Executive Director Mr. Jeremy D. Thigpen | ||
Sector Energy | Industry Oil & Gas Drilling | Full time employees 5470 | Website https://www.deepwater.com |
Full time employees 5470 | Website https://www.deepwater.com | ||
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells in Switzerland and internationally. The company contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. It also operates a fleet of mobile offshore drilling units, consisting of ultra-deepwater floaters and harsh environment floaters. It serves integrated energy companies and their affiliates, government-owned or government-controlled energy companies, and other independent energy companies. Transocean Ltd. was founded in 1926 and is based in Steinhausen, Switzerland.
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