# Transocean (RIG.US)

Canonical: https://gigainvestors.com/s/RIG

Analysis as of: 2026-10-16T07:31:34.729Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $5.51 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 9

- Operating margin variation: 2.60×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.27×

- FY2017: -0.84×

- FY2018: -0.41×

- FY2019: -0.23×

- FY2020: -0.16×

- FY2021: -0.04×

- FY2022: -0.01×

- FY2023: -0.03×

- FY2024: 0.11×

- FY2025: 0.18×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -0.4%

- ROIC, second-lowest year: -4.9%

- Typical minus recent gross margin: -5.7 pp

- Typical gross margin (annual median): 73.3%

- Recent gross margin (lower of latest and 3-year median): 79.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.5%

- ROIC including acquisitions, ten-year median: -2.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.6%

- FY2017: -11.5%

- FY2018: -4.9%

- FY2019: -2.9%

- FY2020: -2.1%

- FY2021: -0.5%

- FY2022: -0.1%

- FY2023: -0.4%

- FY2024: 1.7%

- FY2025: 4.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$3.3B

- Net income, five-year total: -$5.6B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -8.1 pp

- Working capital / revenue, final three-year average: 20.0%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $162M

- FY2022: -$486M

- FY2023: -$585M

- FY2024: -$23M

- FY2025: -$2.4B

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -4.9% vs 1.7%

- Per-share earnings: 2.12 to -1.24 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 10.2%

- Ordinary dilution, 5-year annual growth: 9.3%

- Market cap gain: -$1.2B

- Cumulative retained earnings: -$13B

- Diluted shares, 10-year annual growth: 10.2%

- Diluted shares, 5-year annual growth: 9.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$3.36

- Per-share value, starting three-year median: $2.12

- Per-share value, ending three-year median: -$1.24

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: $928M

- Cumulative net income, 10 years: -$12B

- ROIC, first three-year median: -4.9%

- ROIC, last three-year median: 1.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.12

- FY2017: -$8.00

- FY2018: -$4.26

- FY2019: -$2.05

- FY2020: -$0.92

- FY2021: -$0.93

- FY2022: -$0.89

- FY2023: -$1.24

- FY2024: -$0.55

- FY2025: -$3.04

### accounting: pass

- Sloan accruals: -23.4%

- Receivables to sales index (DSRI): 0.85×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.7%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.2%

- FY2017: -19.1%

- FY2018: -10.0%

- FY2019: -6.6%

- FY2020: -4.4%

- FY2021: -5.6%

- FY2022: -5.2%

- FY2023: -5.5%

- FY2024: -5.0%

- FY2025: -23.4%

## Holders

- [Mohnish Pabrai](https://gigainvestors.com/PI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 37% since Jul 2023 · "Further, the company issued outlook, expecting lower revenues in fiscal 2026." (nasdaq.com, Feb 2026) · sales +12.5%

Story as of 2026-10-16T09:59:30.127Z; price observation 2026-10-15.

- 2025-07-18: Transocean Boosts Backlog Growth With New Contracts and Extensions ([finance.yahoo.com](https://finance.yahoo.com/news/transocean-boosts-backlog-growth-contracts-134700233.html))

- 2025-10-03: Transocean Expands $243M Backlog With BP and Petrobras Deals ([finance.yahoo.com](https://finance.yahoo.com/news/transocean-expands-243m-backlog-bp-120000694.html))

- 2025-11-24: Transocean Secures $89M Backlog Contract With New Rig Options ([finance.yahoo.com](https://finance.yahoo.com/news/transocean-secures-89m-backlog-contract-162800818.html))

- 2026-01-24: Transocean (RIG) Is Up 14.2% After New Brazil, Norway And Australia Offshore Contracts ([finance.yahoo.com](https://finance.yahoo.com/news/transocean-rig-14-2-brazil-060851914.html))

- 2026-02-25: Transocean (RIG) Soars With Record $1.37B EBITDA And Strategic Valaris Acquisition ([finance.yahoo.com](https://finance.yahoo.com/news/transocean-rig-soars-record-1-111944599.html))

- 2026-05-05: Transocean shares down after a surprise Q1 loss ([seekingalpha.com](https://seekingalpha.com/news/4585731-transocean-shares-down-after-surprise-q1-loss?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +12.5%; source https://www.sec.gov/Archives/edgar/data/1451505/000145150526000018/rig-20251231x10k.htm; observed 2026-02-23.

- FY2016: $4.2B 

- FY2017: $3.0B 

- FY2018: $3.0B 

- FY2019: $3.1B 

- FY2020: $3.2B 

- FY2021: $2.6B 

- FY2022: $2.6B 

- FY2023: $2.8B 

- FY2024: $3.5B 

- FY2025: $4.0B 

### Gross margin · FY2025

gross margin 83.4%; source https://www.sec.gov/Archives/edgar/data/1451505/000145150526000018/rig-20251231x10k.htm; observed 2026-02-23.

- FY2016: 78.5% 

- FY2017: 72.0% 

- FY2018: 72.9% 

- FY2019: 72.3% 

- FY2020: 75.2% 

- FY2021: 71.0% 

- FY2022: 71.5% 

- FY2023: 73.7% 

- FY2024: 79.0% 

- FY2025: 83.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas drilling; annual sales are USD 4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1451505/000145150526000018/rig-20251231x10k.htm (filed 2026-02-23); FY2025: revenue 3965000000; grossProfit 3306000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RIG.US: Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells in Switzerland and internationally. The company contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. It also operates a fleet of mobile offshore drilling units, consisting of ultra-deepwater floaters and harsh environment semisubmersibles. It serves integrated energy companies and their affiliates, government-owned or government-controlled energy companies, and other independent energy companies. Transocean Ltd. was founded in 1926 and is based in Zug, Switzerland.

### Why customers stay

Margins ranged from 73.7% to 83.4% during 2023–25; it lost 0.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2023: grossProfit / revenue = 73.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2024: grossProfit / revenue = 79%.

- Source: https://www.sec.gov/Archives/edgar/data/1451505/000145150526000018/rig-20251231x10k.htm (filed 2026-02-23); FY2025: grossProfit / revenue = 83.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); 10-year return on capital observations [[2016,0.0461626993123405],[2017,-0.11549842418582934],[2018,-0.04909538002980626],[2019,-0.02946205969068432],[2020,-0.02133147113594041],[2021,-0.004936949001227542],[2022,-0.0009331758353020587],[2023,-0.003887795275590551],[2024,0.01731659890401273],[2025,0.04362077067669173]]; median -0.004412372138409047. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2016: growth capex 0; upkeep 1344000000; owner earnings 327000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2020: growth capex 0; upkeep 265000000; owner earnings 164000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2021: growth capex 0; upkeep 208000000; owner earnings 162000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Dividend observations: [[2016,30000000],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 9.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RIG.US SharesStats.PercentInsiders = 9.253 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Closing price 5.51 USD; reporting-to-trading FX 1; FY2025 annual sales per share 4.130208333333333; price multiple 1.3340731399747794. FY2025 cash earnings/share -2.478125. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $9.61 per share

- 2016-11: $12.90 per share

- 2016-12: $14.74 per share

- 2017-01: $13.97 per share

- 2017-02: $13.82 per share

- 2017-03: $12.45 per share

- 2017-04: $11.03 per share

- 2017-05: $9.09 per share

- 2017-06: $8.23 per share

- 2017-07: $8.65 per share

- 2017-08: $8.16 per share

- 2017-09: $10.76 per share

- 2017-10: $10.50 per share

- 2017-11: $10.14 per share

- 2017-12: $10.68 per share

- 2018-01: $10.79 per share

- 2018-02: $9.11 per share

- 2018-03: $9.90 per share

- 2018-04: $12.37 per share

- 2018-05: $12.65 per share

- 2018-06: $13.44 per share

- 2018-07: $12.87 per share

- 2018-08: $12.11 per share

- 2018-09: $13.95 per share

- 2018-10: $11.01 per share

- 2018-11: $9.28 per share

- 2018-12: $6.94 per share

- 2019-01: $8.57 per share

- 2019-02: $8.17 per share

- 2019-03: $8.71 per share

- 2019-04: $7.86 per share

- 2019-05: $6.20 per share

- 2019-06: $6.41 per share

- 2019-07: $6.08 per share

- 2019-08: $4.55 per share

- 2019-09: $4.47 per share

- 2019-10: $4.75 per share

- 2019-11: $4.98 per share

- 2019-12: $6.88 per share

- 2020-01: $4.56 per share

- 2020-02: $3.35 per share

- 2020-03: $1.16 per share

- 2020-04: $1.28 per share

- 2020-05: $1.33 per share

- 2020-06: $1.83 per share

- 2020-07: $2.04 per share

- 2020-08: $1.22 per share

- 2020-09: $0.81 per share

- 2020-10: $0.67 per share

- 2020-11: $1.85 per share

- 2020-12: $2.31 per share

- 2021-01: $3.36 per share

- 2021-02: $3.47 per share

- 2021-03: $3.55 per share

- 2021-04: $3.22 per share

- 2021-05: $3.78 per share

- 2021-06: $4.52 per share

- 2021-07: $3.61 per share

- 2021-08: $3.56 per share

- 2021-09: $3.79 per share

- 2021-10: $3.53 per share

- 2021-11: $3.02 per share

- 2021-12: $2.76 per share

- 2022-01: $3.15 per share

- 2022-02: $3.54 per share

- 2022-03: $4.57 per share

- 2022-04: $3.76 per share

- 2022-05: $4.12 per share

- 2022-06: $3.33 per share

- 2022-07: $3.38 per share

- 2022-08: $3.62 per share

- 2022-09: $2.47 per share

- 2022-10: $3.68 per share

- 2022-11: $4.25 per share

- 2022-12: $4.56 per share

- 2023-01: $6.74 per share

- 2023-02: $6.99 per share

- 2023-03: $6.36 per share

- 2023-04: $5.90 per share

- 2023-05: $5.72 per share

- 2023-06: $7.01 per share

- 2023-07: $8.80 per share

- 2023-08: $8.18 per share

- 2023-09: $8.21 per share

- 2023-10: $6.62 per share

- 2023-11: $6.36 per share

- 2023-12: $6.35 per share

- 2024-01: $5.46 per share

- 2024-02: $4.69 per share

- 2024-03: $6.28 per share

- 2024-04: $5.22 per share

- 2024-05: $6.20 per share

- 2024-06: $5.35 per share

- 2024-07: $5.79 per share

- 2024-08: $4.74 per share

- 2024-09: $4.25 per share

- 2024-10: $4.34 per share

- 2024-11: $4.40 per share

- 2024-12: $3.75 per share

- 2025-01: $3.92 per share

- 2025-02: $2.95 per share

- 2025-03: $3.17 per share

- 2025-04: $2.13 per share

- 2025-05: $2.49 per share

- 2025-06: $2.59 per share

- 2025-07: $2.92 per share

- 2025-08: $3.03 per share

- 2025-09: $3.12 per share

- 2025-10: $3.84 per share

- 2025-11: $4.41 per share

- 2025-12: $4.13 per share

- 2026-01: $4.97 per share

- 2026-02: $6.48 per share

- 2026-03: $6.63 per share

- 2026-04: $6.82 per share

- 2026-05: $6.19 per share

- 2026-06: $4.89 per share

- 2026-07: $5.32 per share

- 2026-08: $5.81 per share

- 2026-09: $5.24 per share

- 2026-10: $5.51 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1451505/000145150526000018/rig-20251231x10k.htm); period 2025-12-31, filed 2026-02-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Mohnish Pabrai](https://gigainvestors.com/PI): 20,398,659 RIG shares; USD 99,749,000 reported position value; 30.53% of portfolio; add; quarter 2026 Q2.
- [Arnold Van Den Berg](https://gigainvestors.com/VAN): 18,265 RIG shares; USD 89,000 reported position value; 0.02% of portfolio; reduce; quarter 2026 Q2.

# RIG — Transocean Ltd.

Held by 2 investors · USD 99,838,000 total · 2026 Q2 · reported price USD 4.89 (split-adjusted).
Page: https://gigainvestors.com/s/RIG

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Mohnish Pabrai (https://gigainvestors.com/PI) | USD 99,749,000 | 31% | add +0.03% |
| Arnold Van Den Berg (https://gigainvestors.com/VAN) | USD 89,000 | <0.1% | reduce -34.16% |

## Total held by quarter

- 2013 Q2: USD 1,029,865,305 · 1 holder · USD 47.95
- 2013 Q3: USD 955,766,550 · 1 holder · USD 44.50
- 2013 Q4: USD 1,061,437,818 · 1 holder · USD 49.42
- 2014 Q1: USD 887,896,386 · 1 holder · USD 41.34
- 2014 Q2: USD 967,149,837 · 1 holder · USD 45.03
- 2014 Q3: USD 686,648,463 · 1 holder · USD 31.97
- 2014 Q4: USD 393,689,907 · 1 holder · USD 18.33
- 2015 Q1: USD 315,080,793 · 1 holder · USD 14.67
- 2015 Q2: USD 346,223,748 · 1 holder · USD 16.12
- 2015 Q3: USD 277,494,468 · 1 holder · USD 12.92
- 2015 Q4: USD 265,896,402 · 1 holder · USD 12.38
- 2016 Q1: USD 196,308,006 · 1 holder · USD 9.14
- 2016 Q2: USD 255,372,231 · 1 holder · USD 11.89
- 2016 Q3: USD 0 · 0 holders
- 2016 Q4: USD 0 · 0 holders
- 2017 Q1: USD 0 · 0 holders
- 2017 Q2: USD 0 · 0 holders
- 2017 Q3: USD 0 · 0 holders
- 2017 Q4: USD 0 · 0 holders
- 2018 Q1: USD 0 · 0 holders
- 2018 Q2: USD 0 · 0 holders
- 2018 Q3: USD 0 · 0 holders
- 2018 Q4: USD 0 · 0 holders
- 2019 Q1: USD 0 · 0 holders
- 2019 Q2: USD 0 · 0 holders
- 2019 Q3: USD 0 · 0 holders
- 2019 Q4: USD 0 · 0 holders
- 2020 Q1: USD 0 · 0 holders
- 2020 Q2: USD 0 · 0 holders
- 2020 Q3: USD 0 · 0 holders
- 2020 Q4: USD 0 · 0 holders
- 2021 Q1: USD 0 · 0 holders
- 2021 Q2: USD 0 · 0 holders
- 2021 Q3: USD 0 · 0 holders
- 2021 Q4: USD 0 · 0 holders
- 2022 Q1: USD 23,000 · 1 holder · USD 4.60
- 2022 Q2: USD 0 · 0 holders
- 2022 Q3: USD 0 · 0 holders
- 2022 Q4: USD 0 · 0 holders
- 2023 Q1: USD 0 · 0 holders
- 2023 Q2: USD 0 · 0 holders
- 2023 Q3: USD 0 · 0 holders
- 2023 Q4: USD 6,202,413 · 1 holder · USD 6.35
- 2024 Q1: USD 6,345,927 · 1 holder · USD 6.28
- 2024 Q2: USD 5,544,259 · 2 holders · USD 5.36
- 2024 Q3: USD 4,429,010 · 2 holders · USD 4.25
- 2024 Q4: USD 3,948,117 · 2 holders · USD 3.76
- 2025 Q1: USD 3,329,987 · 2 holders · USD 3.18
- 2025 Q2: USD 2,813,180 · 2 holders · USD 2.59
- 2025 Q3: USD 76,346,979 · 2 holders · USD 3.12
- 2025 Q4: USD 111,790,882 · 2 holders · USD 4.15
- 2026 Q1: USD 135,387,351 · 2 holders · USD 6.63
- 2026 Q2: USD 99,838,000 · 2 holders · USD 4.89