Texas (June 29, 2014) Wax Ink has issued a Potential Investment Interest opinion for Transocean Ltd. (NYSE: RIG), based on a recent intrinsic value review that placed fair value for the company between $58-$66.
A Potential Investment Interest opinion (watch) means that the current key performance indicators (KPIs) or associated financial metrics, but not both, favor a position in this stock as an active investment at this time.
The recent close of $44.53 is approximately 29% above a fair value buy target for the stock and approximately 37% below a fair value close target for the stock. The recent close is also 7% above analysts' twelve-month $41.50 median price target for the stock.
The recent close represents an 8% decrease in the one-year price of the stock, while year-over-year sales increased 3%, year-over-year earnings increased 25%, year-over-year debt decreased 14.5%, and year-over-year free cash flow decreased 44%.
The company paid a dividend (called a Distribution of Qualifying Additional Paid-In Capital) of $1.68 which represents a year-over-year dividend increase of 118%.
The stock currently has a trailing twelve-month PE Ratio of 6, and a PEG Ratio of 0.5 basis estimated forward earnings growth of 13.5%.
In the past 52 weeks, share prices have moved between a high of $55.74 and a low of $38.47, placing current equilibrium at $43.96.
With the recent close, the stock is trading 25% below the 52 week high, 14% above the 52 week low, and 1% above current equilibrium.
The three-month average daily trading volume for this stock is approximately 4.6 million shares and the average daily volume is approximately 2.6 million shares. There are approximately 56.3 million short interest shares which places the days to cover at 14.48.
Transocean Ltd together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide.
The company's listed competitors include Ensco plc, Noble Corporation,and Saipem S.p.A..
Financial information contained herein, was obtained from the company's most recent annual SEC filing for year ending December 31, 2013 and all prices are per share unless otherwise noted.
Wax Ink currently has no investment position in any company mentioned in this alert.
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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.