TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDG - US8936411003 - Common Stock
1358.55 USD
+28.7 (+2.16%)
1360.08 USD
+1.53 (+0.11%)
Overall TDG gets a fundamental rating of 6 out of 10. We evaluated TDG against 71 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TDG was profitable.
TDG had a positive operating cash flow in the past year.
In the past 5 years TDG has always been profitable.
In the past 5 years TDG always reported a positive cash flow from operatings.
1.2 Ratios
TDG has a Return On Assets of 8.15%. This is amongst the best in the industry. TDG outperforms 87.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.43%, TDG belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TDG is significantly above the industry average of 8.60%.
The last Return On Invested Capital (15.43%) for TDG is above the 3 year average (14.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | N/A | ||
| ROIC | 15.43% |
ROA(3y)6.75%
ROA(5y)5.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.06%
ROIC(5y)12.02%
1.3 Margins
TDG has a better Profit Margin (21.13%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of TDG has grown nicely.
TDG's Operating Margin of 47.96% is amongst the best of the industry. TDG outperforms 100.00% of its industry peers.
TDG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.61%, TDG belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
In the last couple of years the Gross Margin of TDG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.96% | ||
| PM (TTM) | 21.13% | ||
| GM | 60.61% |
OM growth 3Y5.22%
OM growth 5Y5.99%
PM growth 3Y13.72%
PM growth 5Y15.97%
GM growth 3Y1.95%
GM growth 5Y2.8%
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.
The number of shares outstanding for TDG has been increased compared to 5 years ago.
The debt/assets ratio for TDG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.98 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
TDG has a worse Altman-Z score (1.98) than 71.83% of its industry peers.
The Debt to FCF ratio of TDG is 16.53, which is on the high side as it means it would take TDG, 16.53 years of fcf income to pay off all of its debts.
TDG has a Debt to FCF ratio (16.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.63
WACC9.46%
2.3 Liquidity
A Current Ratio of 3.21 indicates that TDG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.21, TDG is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
TDG has a Quick Ratio of 2.25. This indicates that TDG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TDG (2.25) is better than 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.95%, 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 11.21%.
TDG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.59% yearly.
EPS 1Y (TTM)9.95%
EPS 3Y29.48%
EPS 5Y20.91%
EPS Q2Q%10.07%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
3.2 Future
The Earnings Per Share is expected to grow by 13.74% on average over the next years. This is quite good.
Based on estimates for the next years, TDG will show a small growth in Revenue. The Revenue will grow by 7.87% on average per year.
EPS Next Y4.56%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
EPS Next 5Y13.74%
Revenue Next Year12.88%
Revenue Next 2Y10.43%
Revenue Next 3Y9.35%
Revenue Next 5Y7.87%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.36 indicates a quite expensive valuation of TDG.
TDG's Price/Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 69.01% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, TDG is valued a bit more expensive.
The Price/Forward Earnings ratio is 34.78, which means the current valuation is very expensive for TDG.
64.79% of the companies in the same industry are more expensive than TDG, based on the Price/Forward Earnings ratio.
TDG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 34.78 |
4.2 Price Multiples
64.79% of the companies in the same industry are more expensive than TDG, based on the Enterprise Value to EBITDA ratio.
TDG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TDG is cheaper than 69.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.13 | ||
| EV/EBITDA | 22.03 |
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.
The excellent profitability rating of TDG may justify a higher PE ratio.
A more expensive valuation may be justified as TDG's earnings are expected to grow with 12.94% in the coming years.
PEG (NY)7.97
PEG (5Y)1.74
EPS Next 2Y11.63%
EPS Next 3Y12.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.87%, TDG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.39, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.87% |
5.2 History
The dividend of TDG is nicely growing with an annual growth rate of 36.77%!
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)36.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
516.02% of the earnings are spent on dividend by TDG. This is not a sustainable payout ratio.
TDG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP516.02%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
1358.55
+28.7 (+2.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.58%
Inst Owner Change0.3%
Ins Owners0.28%
Ins Owner Change-2.99%
Market Cap76.51B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts80
Price Target1590.96 (17.11%)
Short Float %2.17%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.87% |
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP516.02%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.94%
Min EPS beat(2)-4.8%
Max EPS beat(2)6.68%
EPS beat(4)3
Avg EPS beat(4)0.99%
Min EPS beat(4)-4.8%
Max EPS beat(4)6.68%
EPS beat(8)7
Avg EPS beat(8)3.76%
EPS beat(12)11
Avg EPS beat(12)5.27%
EPS beat(16)14
Avg EPS beat(16)4.71%
Revenue beat(2)1
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-3.49%
Max Revenue beat(2)0.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)0.58%
Revenue beat(8)4
Avg Revenue beat(8)0.01%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)8
Avg Revenue beat(16)0.02%
PT rev (1m)1.24%
PT rev (3m)-3.18%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-11.01%
EPS NY rev (1m)-3.36%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 34.78 | ||
| P/S | 8.67 | ||
| P/FCF | 42.13 | ||
| P/OCF | 37.54 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.03 |
EPS(TTM)37.36
EY2.75%
EPS(NY)39.06
Fwd EY2.88%
FCF(TTM)32.24
FCFY2.37%
OCF(TTM)36.19
OCFY2.66%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)7.97
PEG (5Y)1.74
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | N/A | ||
| ROCE | 20.43% | ||
| ROIC | 15.43% | ||
| ROICexc | 17.75% | ||
| ROICexgc | 72.32% | ||
| OM | 47.96% | ||
| PM (TTM) | 21.13% | ||
| GM | 60.61% | ||
| FCFM | 20.57% |
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-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Debt/EBITDA | 6.5 | ||
| Cap/Depr | 60.49% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 2.86 | ||
| Cash Conversion | 44.29% | ||
| Profit Quality | 97.32% | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z | 1.98 |
F-Score8
WACC9.46%
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)9.95%
EPS 3Y29.48%
EPS 5Y20.91%
EPS Q2Q%10.07%
EPS Next Y4.56%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
EPS Next 5Y13.74%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
Revenue Next Year12.88%
Revenue Next 2Y10.43%
Revenue Next 3Y9.35%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year21.95%
EBIT Next 3Y13.19%
EBIT Next 5Y10.92%
FCF growth 1Y-3.4%
FCF growth 3Y29.87%
FCF growth 5Y10.39%
OCF growth 1Y-0.34%
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 36.36 and the Price/Book (PB) ratio is -7.9.
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 4.56% in the next year.