NYSE:RIG

Transocean Inc. (RIG)

6.25
+0.07 (1.13%)
as of Jun 4, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 4, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Transocean Inc. (RIG-N) has received mixed reviews from experts, highlighting its strong cash flow, valuation, and revenue-generating contracts. However, concerns regarding its high debt levels, particularly in comparison to peers, have been raised, with some experts mentioning recent downgrades linked to Petrobras exposure. The merger with Valaris and their positive outlook on contracting opportunities suggest potential for growth in the sector. While Transocean is recognized as a leader in the space, its performance might fluctuate in the short term due to macroeconomic factors. Some analysts express optimism about the long-term demand for oil services despite the current challenges, indicating a complex but promising future for the company.

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Consensus
Cautious
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Valuation
Fair Value
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Similar
Noble,NBL
TOP PICK
Operator of the British Petroleum (BP-N) drilling rig that caused all the problems in the Gulf. Earnings estimates have come down about 15% but stock price has come down 40%. Trading at 7-8 times earnings.
TOP PICK
This is the rig that was leased by BP. Has been absolutely crushed since the well blowout. Service companies are indemnified by the oil companies, which most people don’t know. They are really down because of the drilling moratorium. If that ends after 6 months, the stock is paying 7% and trading at 4x. Risk/reward is pretty compelling.
DON'T BUY
With the explosion/oil spill, she thought that if it could be contained within a relatively short period of time, stock reaction was overblown. As time passed, there were questions about future deep water drilling so she sold her holdings.
PARTIAL BUY
All companies that had anything to do with British Petroleum and the oil spill have been oversold. When and if the oil spill is under control, there should be a good rally of all the stocks. Good time to start picking away at it.
SELL
Had a major, major break. Should have sold when it broke the 200 day moving average.
TOP PICK
Sign multiyear contracts with production companies but still moves with the commodity prices. Have 140 drilling rigs with a backlog of about 5 years of revenues. Trades at about 9X earnings and should grow 12%-14% in the near term.
TOP PICK
Drilling services to oil/gas industry. Leader in ultra deep-water space. Likes demand/supply fundamentals. $31 billion backlog on a revenue base of $11 billion. Backlog gives very strong earnings visibility. Generating more free cash flow than it can use so recently announced a dividend policy giving a 3.5% yield that should be sustainable.
PAST TOP PICK
(A Top Pick Nov 8/12. Up 32.8% excluding dividends.) Offshore drilling. Has about $40 billion backlog and about 6 years of revenue. Will probably earn about $13 this year and will be down a little bit next year along with the sector.
BUY ON WEAKNESS
This is the leader in terms of the complex semi-submersibles for deep shore applications. If you're comfortable with the currency risk, it looks like a good name to hold. Pretty much of a monopoly on the rigs and are booked years in advance. If it drops after the earnings, pick up more.
BUY
Deepwater oil drilling play. Have a lot of growing opportunities in the deep waters off Brazil. Day rates have held up relatively strongly.
PAST TOP PICK
(A Top Pick March 25/08. Down 47.41%.) Largest offshore driller in the world. This is where the action will be when things heat up. Right now it's a bit early.
DON'T BUY
Deep sea driller. Very well run. As oil prices came down and demand for drilling started to ebb, stock price dropped. No dividend. Future earnings are looking a little weaker than previous. $25-$30 range would look attractive if you've got the patience for the cycle to turn.
DON'T BUY
(Market Call Minute.) You have to wait for energy to turn around.
TOP PICK
Largest deepwater driller globally. Have about 140 rigs. Will earn in the neighbourhood of $14.50 next year. Have over a $40 billion backlog, which represents 5 years of revenue.
DON'T BUY
There is a very good fundamental case to be made for offshore drillers. If the U.S. Congress allows offshore drilling, these companies are in a great spot. Technically this group has been badly broken in the last few weeks. He would like to see it trade above the 50-day and 200-day moving averages.
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