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Is this Large Market Cap Stock target price reasonable for Transocean Ltd. (NYSE:RIG)?

The company in question is, Transocean Ltd. (NYSE:RIG) currently with a stock price of 9.86 (-0.50% today). The market cap for Transocean Ltd. is 3603.18, and is in the sector Basic Materials, and Oil & Gas Drilling & Exploration industry. The target price for Transocean Ltd. is 9.16. Currently Transocean Ltd. is trading with a P/E of 2.87, and a forward P/E of *TBA. Average volume for Transocean Ltd. is 14854.63 and so far today it is 5740845.

Performance in the last year for Transocean Ltd. has been -38.33%. For EPS growth, Transocean Ltd. has seen a growth of 141.60%, and is looking to grow in the next year to -144.70%. More long term stats show that EPS growth has been -17.40% over the last five years and could be *TBA for the next five years. Transocean Ltd. has seen sales growth quarter over quarter at -49.90%, with EPS growth quarter over quarter at -77.80%. The 20-day simple moving average is -1.19%, with the 200-day simple moving average coming to -3.93%.

Since the IPO date for Transocean Ltd. on the 5/28/1993, Transocean Ltd. has seen performance year to date to be -19.95%. With Transocean Ltd. trading at 9.86, the dividend yield is *TBA, and the EPS is 3.45.

So could Transocean Ltd., be undervalued? Well as said before P/E is 2.87. The PEG is *TBA, P/S is 0.63 and the P/B is at 0.24. The P/cash is 1.67, with P/free cash flow at *TBA.

Transocean Ltd. ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.6. This is with long term debt/equity at 0.48, and total debt/equity at 0.55.

In terms of margins, Transocean Ltd. has a gross margin of 50.60%, an operating margin of 30.70% and a profit margin of 21.90%.Payout ratio for Transocean Ltd. is 17.30%. Return on assets come to 4.80% with return on investment coming to 5.10%.

Insider ownership for Transocean Ltd., is at 0.02% and institutional ownership comes to 81.80%. Outstanding shares are at 363.59. While shares float is 363.59. The float short is currently 26.86%, and short ratio is 6.57.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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