TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDG - US8936411003 - Common Stock
1450 USD
+16.46 (+1.15%)
1455.25 USD
+5.25 (+0.36%)
Overall TDG gets a fundamental rating of 6 out of 10. We evaluated TDG against 73 industry peers in the Aerospace & Defense industry. TDG has an excellent profitability rating, but 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
- In the past year TDG was profitable.
- In the past year TDG had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 8.15%, TDG belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
- TDG has a Return On Invested Capital of 15.43%. This is amongst the best in the industry. TDG outperforms 94.52% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TDG is significantly above the industry average of 8.56%.
- 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.
- With an excellent Operating Margin value of 47.96%, TDG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- TDG's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 60.61%, TDG belongs to the best of the industry, outperforming 90.41% of the companies in the same industry.
- TDG's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TDG is still creating some value.
- The number of shares outstanding for TDG has been increased compared to 1 year ago.
- Compared to 5 years ago, TDG has more shares outstanding
- TDG has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.10 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.10, TDG is not doing good in the industry: 75.34% of the companies in the same industry are doing better.
- TDG has a debt to FCF ratio of 16.53. This is a negative value and a sign of low solvency as TDG would need 16.53 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 16.53, TDG is in line with its industry, outperforming 50.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.62
WACC9.5%
2.3 Liquidity
- TDG has a Current Ratio of 3.21. This indicates that TDG is financially healthy and has no problem in meeting 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 65.75% 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.
- TDG's Quick ratio of 2.25 is fine compared to the rest of the industry. TDG outperforms 64.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.95% over the past year.
- TDG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.91% yearly.
- 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
- TDG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.74% yearly.
- TDG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y4.56%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
EPS Next 5Y13.74%
Revenue Next Year12.94%
Revenue Next 2Y10.5%
Revenue Next 3Y9.41%
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
- The Price/Earnings ratio is 38.81, which means the current valuation is very expensive for TDG.
- Compared to the rest of the industry, the Price/Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 72.60% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, TDG is valued a bit more expensive.
- The Price/Forward Earnings ratio is 37.12, which means the current valuation is very expensive for TDG.
- Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than 65.75% of the companies in the same industry.
- TDG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.81 | ||
| Fwd PE | 37.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than the industry average as 65.75% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than 75.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.97 | ||
| EV/EBITDA | 23.5 |
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 12.94% in the coming years.
PEG (NY)8.51
PEG (5Y)1.86
EPS Next 2Y11.63%
EPS Next 3Y12.94%
5. Dividend
5.1 Amount
- TDG has a Yearly Dividend Yield of 6.21%, which is a nice return.
- 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 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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.
- The dividend of TDG decreased in the last 3 years.
Dividend Growth(5Y)36.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- TDG pays out 516.02% of its income as dividend. 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.
DP516.02%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
1450
+16.46 (+1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-12 2025-11-12/bmo
Earnings (Next)02-02 2026-02-02/bmo
Inst Owners97.69%
Inst Owner Change-0.04%
Ins Owners0.28%
Ins Owner Change-2.99%
Market Cap81.66B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts79.23
Price Target1625.58 (12.11%)
Short Float %2.17%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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)2.53%
PT rev (3m)-0.57%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-7.91%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.81 | ||
| Fwd PE | 37.12 | ||
| P/S | 9.25 | ||
| P/FCF | 44.97 | ||
| P/OCF | 40.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.5 |
EPS(TTM)37.36
EY2.58%
EPS(NY)39.06
Fwd EY2.69%
FCF(TTM)32.24
FCFY2.22%
OCF(TTM)36.19
OCFY2.5%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)8.51
PEG (5Y)1.86
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 | 2.1 |
F-Score8
WACC9.5%
ROIC/WACC1.62
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 Year12.94%
Revenue Next 2Y10.5%
Revenue Next 3Y9.41%
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 38.81 and the Price/Book (PB) ratio is -8.43.
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.