Transocean Ltd. (RIG): one to watch?

Real offshore-drilling turnaround with growing backlog and shrinking debt, but a contested Valaris merger and lingering leverage keep this a watch, not a slam-dunk buy.

👀 WATCH Fundamentals59/100

Down 97% from its all-time high of $180.50 — now $5.32

Why RIG dropped

The scary negative net margin and negative ROE are legacy numbers from huge non-cash impairment charges taken in 2025 (like the $938M Q2 2025 loss driven largely by a $1.128B impairment) — not from the business falling apart; meanwhile Q1 2026 actually swung to a $71M profit on record dayrates and a growing multi-billion-dollar contract backlog.

Fwd P/E 18.6Op margin 27.2%Rev growth 19.3%Debt/equity 64.4%Analyst upside 19.9%

How this scored 59/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Loss-making today, but operations are profitable (27.2%) and analysts expect positive earnings next year

✅ Generates cash Free cash flow $1.1B

✅ Not drowning in debt Debt/equity 64.4% (limit 200%)

✅ Can pay its bills Current ratio 1.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 9/25

Operating margin 27.2% 9/9

Net profit margin -66.8% 0/8

Return on equity -30.0% 0/8

Growth Is it getting bigger, or dying? 18/25

Revenue growth 19.3% 7/9

Earnings growth unknown 2/8

Expected profit change 109.9% 8/8

Value Is it cheap right now? 15/25

Forward P/E 18.6 7/10

PEG ratio 1.2 6/8

Analyst target upside 19.9% 2/7

Balance sheet Will it survive? 17/25

Debt / equity 64.4% 8/10

Current ratio 1.5 3/8

Free cash flow $1.1B 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for RIG — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-24. Research only — not financial advice.