TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis

NYSE:TDG • US8936411003

1282.33 USD
-11.54 (-0.89%)
Last: Feb 25, 2026, 02:08 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

TDG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 74 industry peers in the Aerospace & Defense industry. While TDG has a great profitability rating, there are quite some concerns on its financial health. TDG is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • TDG had positive earnings in the past year.
  • In the past year TDG had a positive cash flow from operations.
  • Each year in the past 5 years TDG has been profitable.
  • Each year in the past 5 years TDG had a positive operating cash flow.
TDG Yearly Net Income VS EBIT VS OCF VS FCFTDG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • With an excellent Return On Assets value of 7.61%, TDG belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
  • The Return On Invested Capital of TDG (15.28%) is better than 93.24% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TDG is significantly above the industry average of 9.00%.
  • The 3 year average ROIC (14.06%) for TDG is below the current ROIC(15.28%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.61%
ROE N/A
ROIC 15.28%
ROA(3y)6.75%
ROA(5y)5.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.06%
ROIC(5y)12.02%
TDG Yearly ROA, ROE, ROICTDG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40 -60 -80

1.3 Margins

  • The Profit Margin of TDG (19.85%) is better than 100.00% of its industry peers.
  • TDG's Profit Margin has improved in the last couple of years.
  • The Operating Margin of TDG (47.11%) is better than 100.00% of its industry peers.
  • TDG's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 59.90%, TDG belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TDG has grown nicely.
Industry RankSector Rank
OM 47.11%
PM (TTM) 19.85%
GM 59.9%
OM growth 3Y5.22%
OM growth 5Y5.99%
PM growth 3Y13.72%
PM growth 5Y15.97%
GM growth 3Y1.95%
GM growth 5Y2.8%
TDG Yearly Profit, Operating, Gross MarginsTDG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
  • TDG has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TDG has more shares outstanding
  • The debt/assets ratio for TDG is higher compared to a year ago.
TDG Yearly Shares OutstandingTDG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
TDG Yearly Total Debt VS Total AssetsTDG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • TDG has an Altman-Z score of 1.93. This is not the best score and indicates that TDG is in the grey zone with still only limited risk for bankruptcy at the moment.
  • TDG's Altman-Z score of 1.93 is on the low side compared to the rest of the industry. TDG is outperformed by 71.62% of its industry peers.
  • The Debt to FCF ratio of TDG is 16.00, which is on the high side as it means it would take TDG, 16.00 years of fcf income to pay off all of its debts.
  • TDG has a Debt to FCF ratio (16.00) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Altman-Z 1.93
ROIC/WACC1.63
WACC9.35%
TDG Yearly LT Debt VS Equity VS FCFTDG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B

2.3 Liquidity

  • TDG has a Current Ratio of 2.75. This indicates that TDG is financially healthy and has no problem in meeting its short term obligations.
  • TDG has a Current ratio of 2.75. This is comparable to the rest of the industry: TDG outperforms 54.05% of its industry peers.
  • TDG has a Quick Ratio of 1.81. This is a normal value and indicates that TDG is financially healthy and should not expect problems in meeting its short term obligations.
  • TDG has a better Quick ratio (1.81) than 63.51% of its industry peers.
Industry RankSector Rank
Current Ratio 2.75
Quick Ratio 1.81
TDG Yearly Current Assets VS Current LiabilitesTDG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.98%, which is quite good.
  • Measured over the past years, TDG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.91% on average per year.
  • TDG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.67%.
  • Measured over the past years, TDG shows a quite strong growth in Revenue. The Revenue has been growing by 11.59% on average per year.
EPS 1Y (TTM)8.98%
EPS 3Y29.48%
EPS 5Y20.91%
EPS Q2Q%5.11%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%

3.2 Future

  • TDG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.48% yearly.
  • The Revenue is expected to grow by 8.32% on average over the next years. This is quite good.
EPS Next Y5.52%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
EPS Next 5Y12.48%
Revenue Next Year13.78%
Revenue Next 2Y10.91%
Revenue Next 3Y9.77%
Revenue Next 5Y8.32%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
TDG Yearly Revenue VS EstimatesTDG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
TDG Yearly EPS VS EstimatesTDG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 33.96, TDG can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, TDG is valued a bit cheaper than 78.38% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (26.98), we can say TDG is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 27.63, which means the current valuation is very expensive for TDG.
  • TDG's Price/Forward Earnings ratio is rather cheap when compared to the industry. TDG is cheaper than 83.78% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.01. TDG is around the same levels.
Industry RankSector Rank
PE 33.96
Fwd PE 27.63
TDG Price Earnings VS Forward Price EarningsTDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than the industry average as 71.62% of the companies are valued more expensively.
  • TDG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TDG is cheaper than 81.08% of the companies in the same industry.
Industry RankSector Rank
P/FCF 38.56
EV/EBITDA 21.39
TDG Per share dataTDG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 -100 -200 -300 -400

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 12.79% in the coming years.
PEG (NY)6.15
PEG (5Y)1.62
EPS Next 2Y11.46%
EPS Next 3Y12.79%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 6.72%, TDG is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.34, TDG pays a better dividend. On top of this TDG pays more dividend than 100.00% of the companies listed in the same industry.
  • TDG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 6.72%

5.2 History

  • On average, the dividend of TDG grows each year by 36.77%, which is quite nice.
  • TDG has been paying a dividend for over 5 years, so it has already some track record.
  • The dividend of TDG decreased in the last 3 years.
Dividend Growth(5Y)36.77%
Div Incr Years2
Div Non Decr Years2
TDG Yearly Dividends per shareTDG Yearly Dividends per shareYearly Dividends per share 2019 2022 2023 2024 2025 20 40 60 80

5.3 Sustainability

  • 292.70% of the earnings are spent on dividend by TDG. This is not a sustainable payout ratio.
  • The dividend of TDG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP292.7%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
TDG Yearly Income VS Free CF VS DividendTDG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
TDG Dividend Payout.TDG Dividend Payout, showing the Payout Ratio.TDG Dividend Payout.PayoutRetained Earnings

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TRANSDIGM GROUP INC

NYSE:TDG (2/25/2026, 2:08:08 PM)

1282.33

-11.54 (-0.89%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners97.69%
Inst Owner Change-1.11%
Ins Owners0.28%
Ins Owner Change-2.27%
Market Cap72.41B
Revenue(TTM)9.11B
Net Income(TTM)1.81B
Analysts78.52
Price Target1638.47 (27.77%)
Short Float %2.24%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield 6.72%
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP292.7%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.62%
Min EPS beat(2)0.56%
Max EPS beat(2)6.68%
EPS beat(4)3
Avg EPS beat(4)0.81%
Min EPS beat(4)-4.8%
Max EPS beat(4)6.68%
EPS beat(8)7
Avg EPS beat(8)2.51%
EPS beat(12)11
Avg EPS beat(12)4.77%
EPS beat(16)15
Avg EPS beat(16)5.09%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.22%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)0.58%
Revenue beat(8)4
Avg Revenue beat(8)-0.64%
Revenue beat(12)7
Avg Revenue beat(12)0.5%
Revenue beat(16)9
Avg Revenue beat(16)0.31%
PT rev (1m)0.79%
PT rev (3m)4.27%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-2.47%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.13%
Valuation
Industry RankSector Rank
PE 33.96
Fwd PE 27.63
P/S 7.95
P/FCF 38.56
P/OCF 34.19
P/B N/A
P/tB N/A
EV/EBITDA 21.39
EPS(TTM)37.76
EY2.94%
EPS(NY)46.41
Fwd EY3.62%
FCF(TTM)33.26
FCFY2.59%
OCF(TTM)37.51
OCFY2.92%
SpS161.31
BVpS-164.16
TBVpS-427.27
PEG (NY)6.15
PEG (5Y)1.62
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.61%
ROE N/A
ROCE 20.22%
ROIC 15.28%
ROICexc 17.27%
ROICexgc 73.55%
OM 47.11%
PM (TTM) 19.85%
GM 59.9%
FCFM 20.62%
ROA(3y)6.75%
ROA(5y)5.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.06%
ROIC(5y)12.02%
ROICexc(3y)18.01%
ROICexc(5y)15.38%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.48%
ROCE(5y)15.76%
ROICexgc growth 3Y2.99%
ROICexgc growth 5Y-0.67%
ROICexc growth 3Y12.56%
ROICexc growth 5Y9.03%
OM growth 3Y5.22%
OM growth 5Y5.99%
PM growth 3Y13.72%
PM growth 5Y15.97%
GM growth 3Y1.95%
GM growth 5Y2.8%
F-Score6
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Debt/EBITDA 6.41
Cap/Depr 63.66%
Cap/Sales 2.63%
Interest Coverage 2.85
Cash Conversion 45.37%
Profit Quality 103.87%
Current Ratio 2.75
Quick Ratio 1.81
Altman-Z 1.93
F-Score6
WACC9.35%
ROIC/WACC1.63
Cap/Depr(3y)55.08%
Cap/Depr(5y)50.76%
Cap/Sales(3y)2.23%
Cap/Sales(5y)2.22%
Profit Quality(3y)107.45%
Profit Quality(5y)112.35%
High Growth Momentum
Growth
EPS 1Y (TTM)8.98%
EPS 3Y29.48%
EPS 5Y20.91%
EPS Q2Q%5.11%
EPS Next Y5.52%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
EPS Next 5Y12.48%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%
Revenue Next Year13.78%
Revenue Next 2Y10.91%
Revenue Next 3Y9.77%
Revenue Next 5Y8.32%
EBIT growth 1Y11.51%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year22.56%
EBIT Next 3Y13.54%
EBIT Next 5Y10.75%
FCF growth 1Y26.04%
FCF growth 3Y29.87%
FCF growth 5Y10.39%
OCF growth 1Y29.62%
OCF growth 3Y29.06%
OCF growth 5Y10.94%

TRANSDIGM GROUP INC / TDG FAQ

Can you provide the ChartMill fundamental rating for TRANSDIGM GROUP INC?

ChartMill assigns a fundamental rating of 6 / 10 to TDG.


Can you provide the valuation status for TRANSDIGM GROUP INC?

ChartMill assigns a valuation rating of 4 / 10 to TRANSDIGM GROUP INC (TDG). This can be considered as Fairly Valued.


What is the profitability of TDG stock?

TRANSDIGM GROUP INC (TDG) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for TDG stock?

The Price/Earnings (PE) ratio for TRANSDIGM GROUP INC (TDG) is 33.96 and the Price/Book (PB) ratio is -7.81.


What is the expected EPS growth for TRANSDIGM GROUP INC (TDG) stock?

The Earnings per Share (EPS) of TRANSDIGM GROUP INC (TDG) is expected to grow by 5.52% in the next year.