| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | — | 17.8x | Top tier | |
Growth | 47 | 8.5% | 7.1% | Around median | |
Quality | 29 | -7.0% | 4.5% | Bottom tier | |
Safety | 48 | — | 2.6x | Around median | |
Capital Return | 93 | — | 2.12% | Top tier | |
Momentum | 60 | 69.7% | 2.9% | Around median | |
Sentiment | 91 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Transocean Ltd. specializes in offshore drilling services, focusing on operating deepwater drillships and harsh-environment semisubmersibles. It generates revenue from rig operating contracts for companies such as Petrobras, Vår Energi, and ONGC, and the economic return of each asset depends on utilization, revenue efficiency, dayrate, and contract duration. In Q1 of fiscal 2026, the average daily revenue was $476 thousand, the highest in more than a decade, while utilization reached 98% and revenue efficiency exceeded 97%.
In Q2 of fiscal 2026, Transocean reported revenue of $966 million, gross profit of $358 million, and net income of $170 million, with earnings per share of $0.04. This equates to a gross profit margin of approximately 37.1% and a net income margin of approximately 17.6%. Compared with Q1 of fiscal 2026, revenue declined by approximately 12.2% from $1.1 billion, and gross profit fell from $475 million, while net income increased from $71 million to $170 million.
The figures for the twelve months ended in fiscal 2026 present a more conservative picture than the latest quarterly result, with revenue of $4.1 billion and gross profit of $1.7 billion, but a net loss of $2.8 billion and earnings per share of approximately negative $2.46. The company also ended Q1 of fiscal 2026 with backlog exceeding $7 billion and firm contract coverage of 86% for fiscal 2026 and 73% for fiscal 2027, providing revenue visibility despite the continued loss on a twelve-month basis.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy with an average price target of $7, with both the highest and lowest targets matching at $7, reflecting no apparent dispersion in the available targets but offering no broad range for differing scenarios. The consensus target is approximately 8.6% below the 52-week range high of $7.66 and approximately 139% above the range low of $2.93. No positive price-to-earnings ratio is available because of the twelve-month loss of $2.8 billion, so valuation depends heavily on converting backlog into cash flow, reducing debt, and completing the Valaris transaction rather than relying on stable positive annual earnings.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Backlog exceeded $7 billion on May 5, 2026, after the addition of approximately $1.6 billion from contracts and extensions for five rigs. Firm contract coverage reached 86% for fiscal 2026 and 73% for fiscal 2027. Key additions included extensions for Deepwater Orion and Deepwater Corcovado with a combined value of approximately $845 million and a Deepwater Asgard contract worth approximately $158 million.
In Q2 of fiscal 2026, the company reported revenue of $966 million, net income of $170 million, and earnings per share of $0.04. Net income increased from $71 million in Q1 of fiscal 2026, but revenue declined from $1.1 billion. Gross profit also fell from $475 million to $358 million, and the calculated gross margin declined from approximately 43.2% to approximately 37.1%.
On August 20, 2026, Transocean announced a binding two-year letter of award for the Dhirubhai Deepwater KG2 drillship. The estimated total contract value is approximately $300 million, and the work will be performed for ONGC in India. The contract adds operating duration and contracted revenue in a region where management expected up to four drillships and two semisubmersibles to be added during fiscal 2027.
Management stated on May 5, 2026 that the transaction required antitrust approvals in seven countries and that it had obtained approvals from Saudi Arabia and Trinidad and Tobago at that time. On August 25, 2026, Transocean confirmed compliance with the second request for information from the U.S. Department of Justice, while the final decision remained unannounced in the available information. Management expects to close the transaction during fiscal 2026 and estimates the combined entity's backlog at approximately $12 billion and additional cost savings at more than $200 million.
In March 2026, the company repaid the $358 million Deepwater Titan bonds, saving approximately $40 million in interest expense. Remaining debt principal was approximately $5.1 billion on May 5, 2026, and management targeted repayment of at least $750 million during fiscal 2026 and ending it with debt principal of approximately $4.9 billion. However, the ratio of net debt to adjusted earnings before interest, taxes, depreciation, and amortization was approximately 3.1 times, making leverage reduction a central element of the investment thesis.
Management reported that the market added 80 rig-years through 61 new contracts since the beginning of fiscal 2026 and that the average contract duration increased to 480 days, twice the fiscal 2025 average. The company expects deepwater rig utilization to approach 100% by fiscal 2027, while utilization of harsh-environment units in Norway remains close to 100% in subsequent years. It also expects the number of active rigs in Africa to increase from approximately 15 to at least 20 within one to two years from the date of the May 5, 2026 call.
