TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1271.45 USD
-21.85 (-1.69%)
1271.45 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TDG. TDG was compared to 68 industry peers in the Aerospace & Defense industry. While TDG has a great profitability rating, there are some minor concerns on its financial health. TDG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TDG had positive earnings in the past year.
TDG had a positive operating cash flow in the past year.
TDG had positive earnings in each of the past 5 years.
Each year in the past 5 years TDG had a positive operating cash flow.
1.2 Ratios
TDG has a Return On Assets of 7.71%. This is amongst the best in the industry. TDG outperforms 85.29% of its industry peers.
TDG's Return On Invested Capital of 14.57% is amongst the best of the industry. TDG outperforms 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TDG is above the industry average of 8.21%.
The last Return On Invested Capital (14.57%) for TDG is above the 3 year average (12.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | N/A | ||
| ROIC | 14.57% |
ROA(3y)5.47%
ROA(5y)4.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.09%
ROIC(5y)10.39%
1.3 Margins
TDG's Profit Margin of 20.41% is amongst the best of the industry. TDG outperforms 100.00% of its industry peers.
TDG's Profit Margin has improved in the last couple of years.
TDG has a Operating Margin of 46.88%. This is amongst the best in the industry. TDG outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of TDG has grown nicely.
With an excellent Gross Margin value of 60.12%, TDG belongs to the best of the industry, outperforming 89.71% of the companies in the same industry.
TDG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.88% | ||
| PM (TTM) | 20.41% | ||
| GM | 60.12% |
OM growth 3Y7.74%
OM growth 5Y2.75%
PM growth 3Y13.82%
PM growth 5Y4.58%
GM growth 3Y3.98%
GM growth 5Y1.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TDG is creating some value.
Compared to 1 year ago, TDG has more shares outstanding
TDG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TDG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.40 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TDG (2.40) is worse than 63.24% of its industry peers.
The Debt to FCF ratio of TDG is 13.12, which is on the high side as it means it would take TDG, 13.12 years of fcf income to pay off all of its debts.
TDG has a Debt to FCF ratio of 13.12. This is comparable to the rest of the industry: TDG outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.57
WACC9.28%
2.3 Liquidity
A Current Ratio of 3.13 indicates that TDG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.13, TDG is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
TDG has a Quick Ratio of 2.19. This indicates that TDG is financially healthy and has no problem in meeting its short term obligations.
TDG has a better Quick ratio (2.19) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.02% over the past year.
Measured over the past years, TDG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.77% on average per year.
The Revenue has grown by 12.79% in the past year. This is quite good.
The Revenue has been growing by 8.74% on average over the past years. This is quite good.
EPS 1Y (TTM)13.02%
EPS 3Y40.97%
EPS 5Y12.77%
EPS Q2Q%6.67%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
3.2 Future
The Earnings Per Share is expected to grow by 8.67% on average over the next years. This is quite good.
TDG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.32% yearly.
EPS Next Y10.12%
EPS Next 2Y12.66%
EPS Next 3Y13.33%
EPS Next 5Y8.67%
Revenue Next Year11.02%
Revenue Next 2Y10.5%
Revenue Next 3Y9.51%
Revenue Next 5Y9.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TDG is valuated quite expensively with a Price/Earnings ratio of 34.96.
Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TDG is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.48, the valuation of TDG can be described as expensive.
Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, TDG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 29.48 |
4.2 Price Multiples
63.24% of the companies in the same industry are more expensive than TDG, based on the Enterprise Value to EBITDA ratio.
76.47% of the companies in the same industry are more expensive than TDG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.59 | ||
| EV/EBITDA | 21.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TDG does not grow enough to justify the current Price/Earnings ratio.
TDG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TDG's earnings are expected to grow with 13.33% in the coming years.
PEG (NY)3.45
PEG (5Y)2.74
EPS Next 2Y12.66%
EPS Next 3Y13.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.98%, TDG is a good candidate for dividend investing.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.51. TDG pays more dividend than 100.00% of the companies in the same industry.
TDG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.98% |
5.2 History
The dividend of TDG has a limited annual growth rate of 2.56%.
TDG has been paying a dividend for over 5 years, so it has already some track record.
TDG has decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.56%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TDG pays out 251.06% of its income as dividend. This is not a sustainable payout ratio.
TDG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP251.06%
EPS Next 2Y12.66%
EPS Next 3Y13.33%
1271.45
-21.85 (-1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.64%
Inst Owner Change-0.69%
Ins Owners0.3%
Ins Owner Change-0.78%
Market Cap71.65B
Analysts82.31
Price Target1643.23 (29.24%)
Short Float %2.02%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.98% |
Yearly Dividend36.65
Dividend Growth(5Y)2.56%
DP251.06%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.01%
Min EPS beat(2)-4.8%
Max EPS beat(2)0.78%
EPS beat(4)3
Avg EPS beat(4)0.52%
Min EPS beat(4)-4.8%
Max EPS beat(4)4.79%
EPS beat(8)7
Avg EPS beat(8)3.61%
EPS beat(12)11
Avg EPS beat(12)5.11%
EPS beat(16)14
Avg EPS beat(16)5.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-3.49%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)-0.41%
Revenue beat(8)3
Avg Revenue beat(8)-0.08%
Revenue beat(12)6
Avg Revenue beat(12)0.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.24%
PT rev (1m)-2.65%
PT rev (3m)4.97%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-1.19%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 29.48 | ||
| P/S | 8.35 | ||
| P/FCF | 37.59 | ||
| P/OCF | 34.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.25 |
EPS(TTM)36.37
EY2.86%
EPS(NY)43.13
Fwd EY3.39%
FCF(TTM)33.82
FCFY2.66%
OCF(TTM)37.32
OCFY2.94%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.45
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | N/A | ||
| ROCE | 19.63% | ||
| ROIC | 14.57% | ||
| ROICexc | 16.78% | ||
| ROICexgc | 71% | ||
| OM | 46.88% | ||
| PM (TTM) | 20.41% | ||
| GM | 60.12% | ||
| FCFM | 22.22% |
ROA(3y)5.47%
ROA(5y)4.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.09%
ROIC(5y)10.39%
ROICexc(3y)15.91%
ROICexc(5y)13.84%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.13%
ROCE(5y)13.86%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y26.62%
ROICexc growth 5Y11.93%
OM growth 3Y7.74%
OM growth 5Y2.75%
PM growth 3Y13.82%
PM growth 5Y4.58%
GM growth 3Y3.98%
GM growth 5Y1.47%
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Debt/EBITDA | 5.68 | ||
| Cap/Depr | 54.12% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 47.95% | ||
| Profit Quality | 108.85% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 2.4 |
F-Score7
WACC9.28%
ROIC/WACC1.57
Cap/Depr(3y)50.6%
Cap/Depr(5y)46.08%
Cap/Sales(3y)2.13%
Cap/Sales(5y)2.13%
Profit Quality(3y)110.44%
Profit Quality(5y)136%
High Growth Momentum
Growth
EPS 1Y (TTM)13.02%
EPS 3Y40.97%
EPS 5Y12.77%
EPS Q2Q%6.67%
EPS Next Y10.12%
EPS Next 2Y12.66%
EPS Next 3Y13.33%
EPS Next 5Y8.67%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
Revenue Next Year11.02%
Revenue Next 2Y10.5%
Revenue Next 3Y9.51%
Revenue Next 5Y9.32%
EBIT growth 1Y13.94%
EBIT growth 3Y27.44%
EBIT growth 5Y11.72%
EBIT Next Year30.7%
EBIT Next 3Y15.8%
EBIT Next 5Y12.73%
FCF growth 1Y81.35%
FCF growth 3Y32.51%
FCF growth 5Y15.52%
OCF growth 1Y77.32%
OCF growth 3Y30.84%
OCF growth 5Y15.03%