Transocean Ltd. Stock Price and Value Analysis
Should you buy Transocean Ltd. stock? (NYSE:RIG). Let's see how it does in our automated value investing analysis system.
RIG Free Cash Flow Trend
Hmm, we can't give any reliable projection for Transocean Ltd.'s growth rate. The company either has too few years of historical data for us to examine, or it's in the habit of losing money.
None of this means it's a bad stock. Maybe it's new and growing quickly, or maybe it's turning things around. We can't say anything sensible about it, so we won't say it's obviously undervalued right now. Proceed at your own risk!
Inside the RIG Numbers
(Transocean Ltd. stock price per share)
PE Ratio Versus Sector
Comparing a stock's PE to the average PE of companies in its industry gives you a sense of market sentiment about the stock and how well it fares financially. It's not the only number, nor the most important, but comparing similar companies is valuable. A ratio far above or below that of its peers is significant.
Industries are more specific than sectors, so companies within most industries are more similar than are companies within an industry. Be aware that the size and customers of companies are important to their prospects.
|PE Ratio versus Sector||52% lower than other Basic Materials stocks|
PE Ratio Versus Industry
Comparing a stock's PE to the average PE of companies in its sector gives you a sense of market sentiment about the stock and how well it fares financially. It's not the only number, nor the most important, but comparing similar companies is valuable. A ratio far above or below that of its peers is significant.
Be aware that sectors are very broad, with many types of companies in the same sector.
|PE Ratio versus Industry||53% lower than other Oil & Gas Drilling & Exploration stocks|
The cash yield of a stock is the ratio of free cash per share—real dollars available after bringing in revenue and paying bills—to the current price of the stock. It's similar to the PE ratio, but it's less prone to manipulation through accounting practices.
In general, the less you have to pay to make more money, the better.
Free Cash Flow Jitter
The free cash flow jitter of a stock measures how much the company's free cash flow varies from its historical trend, on average. While it's always nice to make more money than you expected, a company with predictable free cash flow is stable and good. A company with wild swings in its free cash flow warrants further research.
In general, the lower this number, the better.
|Free Cash Flow Jitter||49%|
Is Transocean Ltd. Stock on Sale?
Based on our analysis, we believe that you should not buy Transocean Ltd. right now. It might be a good stock to own—we just can't prove it with value analysis right now. Proceed with caution.
Should You Buy RIG Stock?
Does Transocean Ltd. have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.