Is RIG a high-quality business?

AlphaMadera's AlphaQuality grade scores Transocean Ltd. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how RIG compares to a Buffett-style quality bar.

What is Transocean Ltd.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to RIG based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes RIG a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

RIG - Transocean Ltd.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $6.63 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

D- 30.5 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D- 32.4

5yr Avg ROIC -3.3% 3/100
Operating Margin Trend +5.57 pp/yr 100/100

Capital Efficiency

Weight: 10%

F 0.0

5yr Avg ROE -13.8% 0/100
5yr Share-Count CAGR 10.8% 0/100

Growth Quality

Weight: 5%

C+ 60.8

5yr Revenue CAGR 11.6% 84/100
5yr EPS CAGR 0.0% 20/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

F 22.5

5yr FCF Margin 3.2% 41/100
5yr FCF/NI Conversion 0.00x 0/100

Balance Sheet

Weight: 25%

F 0.0

Net Debt / EBITDA 10.00x 0/100
Interest Coverage (EBIT/Int) -4.31x 0/100
Altman Z-Score -0.41 0/100

Stability

Weight: 20%

A- 85.0

EPS Volatility (σ/μ) 0.00 100/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

5 of 5 gurus held; 1 added; 4 trimmed.

Holders: 5
Avg Δ position: +42.9%
New buys: 0
Full exits: 0

Dalio increased +341%
Wood decreased -42%
Cooperman decreased -38%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.