Transocean Ltd. (RIG) Stock Analysis 2026

EnergyOil & Gas Drilling

BriMind AI Score

Proprietary
27
Weak
Price CAGR
-4.7%
1Y Return
+65.0%
Analyst Upside
+2.0%
Rev Growth
-2.2%

Score based on historical price CAGR, revenue growth, analyst upside, and valuation factors. Updated daily.

AI scores and price targets are for informational and educational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research before making investment decisions. Full Disclaimer →

RIG Revenue & Profitability Breakdown

This chart shows how RIG's revenue flows through to profit. Each row deducts a layer of costs: first the direct cost of making products/services (Cost of Revenue), then operating expenses like marketing and R&D, then taxes. What remains at the bottom is net income — the actual profit shareholders own. High gross and net margins indicate a business with strong pricing power and efficiency.

Revenue
$4.12B
Cost of Revenue
-$2.40B
Gross Profit
$1.71B41.6% margin
Operating Expenses
-$998.8M
Operating Income
$716.2M17.4% margin
Tax & Other
-$2.37B
Net Income
-$-1.66B-40.2% margin
Gross Margin
41.6%
Operating Margin
17.4%
Net Margin
-40.2%

Key Financial Metrics

Transocean Ltd. doesn't carry a meaningful trailing P/E right now, generates $872.6M in free cash flow, runs a debt/equity ratio of 61.16, and converts shareholder equity into profit at a -18.7% return on equity. For context: P/E ratio measures how much you pay for $1 of earnings (lower = cheaper, but fast-growing companies command higher P/E); Free Cash Flow is the cash left after running the business; Debt/Equity shows how leveraged a company is; Return on Equity shows how efficiently it turns shareholder capital into profit.

Market Cap
$6.95B
P/E (Forward)
21.86
PEG Ratio
1.17
Price / Book
0.83
Revenue
$4.12B
Revenue Growth
-2.2%
EPS (Trailing)
$-1.68
EPS (Forward)
$0.28
Gross Margin
41.6%
Operating Margin
17.4%
Net Margin
-40.2%
Return on Equity
-18.7%
Return on Assets
3.5%
Free Cash Flow
$872.6M
Debt / Equity
61.16
Current Ratio
1.59
Quick Ratio
0.93
Beta
1.33
Dividend Yield
None
Payout Ratio
0.0%
Insider Ownership
9.3%
Inst. Ownership
95.2%
Short % Float
26.4%
Book Value / Share
$7.49

Wall Street Analyst Consensus

Wall Street analysts covering Transocean Ltd. currently haven't converged on a clear consensus rating, with a mean 12-month price target of $6.55. Analysts set these targets after researching a company's earnings, competitive position, and industry trends — Strong Buy / Buy means the majority expect meaningful upside, while Hold means fair value near the current price rather than a sell signal.

Mean Target$6.55

Intrinsic Value Estimates for RIG

We use 1 valuation model to estimate RIG's intrinsic value. Intrinsic value is what a stock is truly worth based on the company's fundamentals, independent of what the market prices it at today. If multiple models agree the stock is undervalued, that convergence is a stronger signal.

P/E Based (15× forward)
$4.27
Multiplies next year's estimated earnings per share by 15×. More forward-looking; useful for high-growth companies where current earnings understate potential.
Fair Value Range
$4.27 – $4.27
Average Estimate
$4.27

Intrinsic value estimates use simplified models (Graham, DCF, P/E) and conservative assumptions. They should be used as one input among many — not as sole buy/sell guidance. For advanced analysis, see the full platform.

Technical Price Signals

RIG is currently in a mixed technical position. Moving averages smooth out day-to-day volatility to reveal the underlying trend — a Golden Cross (50MA crosses above 200MA) is a classic bullish signal, a Death Cross is bearish, though both are lagging indicators that confirm trends rather than predict them.

50-Day MA
$5.37
200-Day MA
$5.53

Further Reading

Research and guides that put RIG’s numbers in context — how to read the filings behind them, and the frameworks we use to score them.

Risk ManagementHow to Build Your First Investment Portfolio: Risk Tolerance, Asset Allocation & Your First 5 FundsFundamentalsWarren Buffett Retired 2026: Berkshire Portfolio Under Greg AbelBeginnerWhat Is an AI Stock Score? How BriMindInvest Ranks StocksMarket TheoryStock Market Seasonality: Monthly Returns, 'Sell in May,' and What History Says

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Data sources: Financial metrics and market data sourced from company SEC filings, earnings releases, and investor relations disclosures. Price data, analyst consensus targets, and fundamental financials provided by financial market data providers. ETF data sourced from official fund prospectuses and index provider publications. AI scores and price targets are proprietary estimates — see our Methodology and Disclaimer for details.
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