Transocean Stock Buy Hold or Sell Recommendation
| RIG Stock | USD 3.04 0.19 6.67% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Transocean is 'Hold'. Macroaxis provides Transocean buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RIG positions.
Check out Transocean Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Transocean Stock please use our How to Invest in Transocean guide. Note, we conduct extensive research on individual companies such as Transocean and provide practical buy, sell, or hold advice based on investors' constraints. Transocean. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
Transocean |
Execute Transocean Buy or Sell Advice
The Transocean recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Transocean. Macroaxis does not own or have any residual interests in Transocean or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Transocean's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Relatively risky | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Transocean Trading Alerts and Improvement Suggestions
| Transocean generated a negative expected return over the last 90 days | |
| Transocean has high historical volatility and very poor performance | |
| The company reported the last year's revenue of 3.52 B. Reported Net Loss for the year was (512 M) with profit before taxes, overhead, and interest of 1.35 B. | |
| Transocean has a poor financial position based on the latest SEC disclosures | |
| About 72.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Is Transocean Ltd. The Best Stock Under 3 to Buy Now |
Transocean Returns Distribution Density
The distribution of Transocean's historical returns is an attempt to chart the uncertainty of Transocean's future price movements. The chart of the probability distribution of Transocean daily returns describes the distribution of returns around its average expected value. We use Transocean price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Transocean returns is essential to provide solid investment advice for Transocean.
| Mean Return | -0.37 | Value At Risk | -4.36 | Potential Upside | 5.16 | Standard Deviation | 3.23 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Transocean historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Transocean Stock Institutional Investors
| Shares | Gendell Jeffrey L | 2024-12-31 | 12.5 M | Charles Schwab Investment Management Inc | 2024-12-31 | 12.5 M | Elliott Investment Management Lp | 2024-12-31 | 11.9 M | Keybank National Association | 2024-12-31 | 11.8 M | Northern Trust Corp | 2024-12-31 | 7.5 M | Bank Of New York Mellon Corp | 2024-12-31 | 7.2 M | Ensign Peak Advisors Inc | 2024-12-31 | 7.2 M | Citadel Advisors Llc | 2024-12-31 | 6.6 M | Goldman Sachs Group Inc | 2024-12-31 | 6.2 M | Vanguard Group Inc | 2024-12-31 | 78.8 M | Blackrock Inc | 2024-12-31 | 71.7 M |
Transocean Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | (789M) | (148M) | (421M) | 4M | (54M) | (51.3M) | |
| Free Cash Flow | 133M | 367M | (269M) | (263M) | 193M | 183.4M | |
| Depreciation | 996M | 962M | 852M | 796M | 4M | 3.8M | |
| Other Non Cash Items | 293M | 125M | 236M | 497M | 950M | 836.8M | |
| Capital Expenditures | 265M | 208M | 717M | 427M | 254M | 241.3M | |
| Net Income | (568M) | (591M) | (621M) | (954M) | (512M) | (486.4M) | |
| End Period Cash Flow | 1.6B | 1.4B | 991M | 995M | 941M | 1.5B | |
| Change To Inventory | (64M) | (111M) | (85M) | (36M) | (32.4M) | (30.8M) | |
| Investments | (14M) | (34M) | (757M) | (627M) | (151M) | (158.6M) | |
| Net Borrowings | (269M) | (894M) | (606M) | (379M) | (435.9M) | (457.6M) | |
| Change To Netincome | 856M | 384M | 281M | 311M | 279.9M | 265.9M |
Transocean Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Transocean or Energy Equipment & Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Transocean's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Transocean stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.28 | |
β | Beta against Dow Jones | 0.91 | |
σ | Overall volatility | 3.28 | |
Ir | Information ratio | -0.08 |
Transocean Volatility Alert
Transocean exhibits very low volatility with skewness of 0.41 and kurtosis of 1.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Transocean's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Transocean's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Transocean Implied Volatility
Transocean's implied volatility exposes the market's sentiment of Transocean stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Transocean's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Transocean stock will not fluctuate a lot when Transocean's options are near their expiration.
Transocean Fundamentals Vs Peers
Comparing Transocean's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Transocean's direct or indirect competition across all of the common fundamentals between Transocean and the related equities. This way, we can detect undervalued stocks with similar characteristics as Transocean or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Transocean's fundamental indicators could also be used in its relative valuation, which is a method of valuing Transocean by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Transocean to competition |
| Fundamentals | Transocean | Peer Average |
| Return On Equity | -0.0495 | -0.31 |
| Return On Asset | 0.0125 | -0.14 |
| Profit Margin | (0.15) % | (1.27) % |
| Operating Margin | 0.17 % | (5.51) % |
| Current Valuation | 9.19 B | 16.62 B |
| Shares Outstanding | 878.89 M | 571.82 M |
| Shares Owned By Insiders | 16.85 % | 10.09 % |
| Shares Owned By Institutions | 71.60 % | 39.21 % |
| Number Of Shares Shorted | 140.9 M | 4.71 M |
| Price To Earning | (3.44) X | 28.72 X |
| Price To Book | 0.24 X | 9.51 X |
| Price To Sales | 0.76 X | 11.42 X |
| Revenue | 3.52 B | 9.43 B |
| Gross Profit | 1.35 B | 27.38 B |
| EBITDA | 582 M | 3.9 B |
| Net Income | (512 M) | 570.98 M |
| Cash And Equivalents | 683 M | 2.7 B |
| Cash Per Share | 1.32 X | 5.01 X |
| Total Debt | 6.88 B | 5.32 B |
| Debt To Equity | 0.64 % | 48.70 % |
| Current Ratio | 1.64 X | 2.16 X |
| Book Value Per Share | 11.74 X | 1.93 K |
| Cash Flow From Operations | 447 M | 971.22 M |
| Short Ratio | 4.59 X | 4.00 X |
| Earnings Per Share | (0.76) X | 3.12 X |
| Price To Earnings To Growth | (22.91) X | 4.89 X |
| Target Price | 4.71 | |
| Number Of Employees | 5.47 K | 18.84 K |
| Beta | 2.72 | -0.15 |
| Market Capitalization | 2.67 B | 19.03 B |
| Total Asset | 19.37 B | 29.47 B |
| Retained Earnings | (4.54 B) | 9.33 B |
| Working Capital | 789 M | 1.48 B |
Note: Disposition of 22000 shares by Roderick Mackenzie of Transocean at 2.94 subject to Rule 16b-3 [view details]
Transocean Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Transocean . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Transocean Buy or Sell Advice
When is the right time to buy or sell Transocean? Buying financial instruments such as Transocean Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Transocean in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Long Short Funds Thematic Idea Now
Long Short Funds
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long Short Funds Theme or any other thematic opportunities.
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Check out Transocean Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Transocean Stock please use our How to Invest in Transocean guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Is Energy Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Transocean. If investors know Transocean will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Transocean listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.76) | Revenue Per Share | Quarterly Revenue Growth 0.285 | Return On Assets | Return On Equity |
The market value of Transocean is measured differently than its book value, which is the value of Transocean that is recorded on the company's balance sheet. Investors also form their own opinion of Transocean's value that differs from its market value or its book value, called intrinsic value, which is Transocean's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Transocean's market value can be influenced by many factors that don't directly affect Transocean's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Transocean's value and its price as these two are different measures arrived at by different means. Investors typically determine if Transocean is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Transocean's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.