Transocean Ltd. [RIG] is following upward trend in the market concluded with the last trading session. The shares of the Basic Materials sector company has a current value of $4.65 after RIG shares went up by 1.31% during the last trading session. One of the reasons why Basic Materials stocks may go bullish is increased momentum in the press.

Transocean Ltd. [NYSE:RIG]: Analyst Rating and Earnings

Its stock price has been found in the range of 3.76 to 10.03. This is compared to its latest closing price of $4.59.

Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on Mon 28 Oct (25 days ago).

Fundamental Analysis of Transocean Ltd. [RIG]

Now let’s turn to look at profitability: with a current Operating Margin for Transocean Ltd. [RIG] sitting at +3.73 and its Gross Margin at +9.18, this company’s Net Margin is now -47.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 0.52, and its Return on Invested Capital has reached -6.00%. Its Return on Equity is -15.46, and its Return on Assets is -8.30. These metrics suggest that this Transocean Ltd. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Transocean Ltd. [RIG] has generated a Total Debt to Total Equity ratio of 76.13. Similarly, its Total Debt to Total Capital is 43.22, while its Total Debt to Total Assets stands at 38.88. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 0.17, and

its Long-Term Debt to Total Capital is 73.28.

What about valuation? This company’s Enterprise Value to EBITDA is 9.98 and its Total Debt to EBITDA Value is 9.58. The Enterprise Value to Sales for this firm is now 3.46, and its Total Debt to Enterprise Value stands at 0.96. Transocean Ltd. [RIG] has a Price to Book Ratio of 0.32, a Price to Cash Flow Ratio of 5.82.

Shifting the focus to workforce efficiency, Transocean Ltd. [RIG] earns $448,507 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.83 and its Total Asset Turnover is 0.13. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.38 and its Current Ratio is 2.71. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Transocean Ltd. [RIG] has 592.98M shares outstanding, amounting to a total market cap of $2.72B. Its stock price has been found in the range of 3.76 to 10.03. At its current price, it has moved down by -53.64% from its 52-week high, and it has moved up 23.67% from its 52-week low.

This stock’s Beta value is currently 1.90, which indicates that it is 5.95% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 44.35. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Transocean Ltd. [RIG] a Reliable Buy?

Shares of Transocean Ltd. [RIG], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.