Transocean Ltd (Switzerland) Common Stock (RIG)

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Transocean and see a cyclical, capital-intensive offshore driller, not a compounding franchise. In fiscal Q2 2026, the quarter ended 2026-06-30, it earned $170.0M on $966.0M of revenue, a sharp swing from the $938.0M net loss in fiscal Q2 2025. That is encouraging. But the filed annual record is ugly: FY2025, ended 2025-12-31, produced a $2.9B net loss on $4.0B of revenue; FY2024 lost $512.0M; FY2023 lost $954.0M. FairStock's Lynch category is therefore none, reflecting losses in each of the last four years. The balance sheet and returns keep me cautious. At the 2026-10-13 close of $5.65, FairStock calculates P/B of 0.75 and a negative P/E of -3.36. FairStock calculates a 14.3% FCF yield on TTM free cash flow of $904.0M, which looks attractive if it lasts. But ROCE is only 3.55%, ROE is -18.70%, and the Altman Z-Score is 0.04, a distress signal. Debt/equity is 0.61, and the Piotroski F-Score is 6/9. A moat? Offshore rigs are specialized assets, but the business is price-taking, capital-hungry, and dependent on energy capex. I would want to see several years of profits, not one good quarter, before calling this a durable value. The asset discount is real, but so is the risk that book value is not worth book value if rigs are impaired.

In plain English: Transocean rents offshore drilling rigs and crews to oil and gas companies. It lost money in each of the last four years, though the latest quarter was profitable, and it produces a lot of cash compared with its market value. At $5.65, the stock trades below its accounting book value and looks cheap on cash flow, but the company carries debt and has a very weak financial-risk score.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer