TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1307.97 USD
+13.97 (+1.08%)
1310.5 USD
+2.53 (+0.19%)
We assign a fundamental rating of 6 out of 10 to TDG. TDG was compared to 72 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.
TDG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDG has a Return On Assets of 7.71%. This is amongst the best in the industry. TDG outperforms 84.72% of its industry peers.
The Return On Invested Capital of TDG (14.57%) is better than 93.06% of its industry peers.
TDG had an Average Return On Invested Capital over the past 3 years of 12.09%. This is above the industry average of 8.47%.
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
The Profit Margin of TDG (20.41%) is better than 100.00% of its industry peers.
TDG's Profit Margin has improved in the last couple of years.
TDG has a better Operating Margin (46.88%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of TDG has grown nicely.
The Gross Margin of TDG (60.12%) is better than 90.28% of its industry peers.
In the last couple of years the Gross Margin of TDG has remained more or less at the same level.
| 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
TDG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TDG has been increased compared to 1 year ago.
TDG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TDG has been reduced compared to a year ago.
2.2 Solvency
TDG has an Altman-Z score of 2.43. 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 has a Altman-Z score of 2.43. This is in the lower half of the industry: TDG underperforms 66.67% 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.
Looking at the Debt to FCF ratio, with a value of 13.12, TDG is in line with its industry, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.53
WACC9.5%
2.3 Liquidity
A Current Ratio of 3.13 indicates that TDG has no problem at all paying its short term obligations.
TDG has a better Current ratio (3.13) than 66.67% of its industry peers.
A Quick Ratio of 2.19 indicates that TDG has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.19, TDG is doing good in the industry, outperforming 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.02%, which is quite good.
TDG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.77% yearly.
TDG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.79%.
TDG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.74% yearly.
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 10.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.70% on average over the next years. This is quite good.
EPS Next Y9.12%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
EPS Next 5Y10.78%
Revenue Next Year10.97%
Revenue Next 2Y11.19%
Revenue Next 3Y9.99%
Revenue Next 5Y8.7%
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 stable.
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 35.96.
69.44% of the companies in the same industry are more expensive than TDG, based on the Price/Earnings ratio.
TDG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 32.36, TDG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, TDG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.96 | ||
| Fwd PE | 32.36 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than TDG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.67 | ||
| EV/EBITDA | 21.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TDG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.94
PEG (5Y)2.82
EPS Next 2Y9.07%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
TDG has a Yearly Dividend Yield of 7.01%, which is a nice return.
Compared to an average industry Dividend Yield of 1.12, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
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
251.06% of the earnings are spent on dividend by TDG. This is not a sustainable payout ratio.
The dividend of TDG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP251.06%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
1307.97
+13.97 (+1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change-0.79%
Ins Owners0.28%
Ins Owner Change-3.76%
Market Cap73.70B
Revenue(TTM)8.58B
Net Income(TTM)1.75B
Analysts82.31
Price Target1586.59 (21.3%)
Short Float %1.95%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
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)-2.95%
PT rev (3m)-6.01%
EPS NQ rev (1m)-2.19%
EPS NQ rev (3m)-6.78%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-2.09%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.96 | ||
| Fwd PE | 32.36 | ||
| P/S | 8.59 | ||
| P/FCF | 38.67 | ||
| P/OCF | 35.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.54 |
EPS(TTM)36.37
EY2.78%
EPS(NY)40.42
Fwd EY3.09%
FCF(TTM)33.82
FCFY2.59%
OCF(TTM)37.32
OCFY2.85%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.94
PEG (5Y)2.82
Graham NumberN/A
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 2.43 |
F-Score7
WACC9.5%
ROIC/WACC1.53
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 Y9.12%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
EPS Next 5Y10.78%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
Revenue Next Year10.97%
Revenue Next 2Y11.19%
Revenue Next 3Y9.99%
Revenue Next 5Y8.7%
EBIT growth 1Y13.94%
EBIT growth 3Y27.44%
EBIT growth 5Y11.72%
EBIT Next Year30.42%
EBIT Next 3Y15.68%
EBIT Next 5Y12.49%
FCF growth 1Y81.35%
FCF growth 3Y32.51%
FCF growth 5Y15.52%
OCF growth 1Y77.32%
OCF growth 3Y30.84%
OCF growth 5Y15.03%
TRANSDIGM GROUP INC / TDG FAQ
What is the fundamental rating for TDG stock?
ChartMill assigns a fundamental rating of 6 / 10 to TDG.
What is the valuation status for TDG stock?
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 8 / 10.
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 9.12% in the next year.
Is the dividend of TRANSDIGM GROUP INC sustainable?
The dividend rating of TRANSDIGM GROUP INC (TDG) is 6 / 10 and the dividend payout ratio is 251.06%.