TRANSDIGM GROUP INC (TDG) Fundamental Analysis & Valuation

NYSE:TDG • US8936411003

Current stock price

1140.03 USD
-11.91 (-1.03%)
At close:
1135.52 USD
-4.51 (-0.4%)
After Hours:

This TDG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TDG Profitability Analysis

1.1 Basic Checks

  • TDG had positive earnings in the past year.
  • TDG had a positive operating cash flow in the past year.
  • Each year in the past 5 years TDG has been profitable.
  • In the past 5 years TDG always reported a positive cash flow from operatings.
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 a decent Return On Assets value of 7.61%, TDG is doing good in the industry, outperforming 78.48% of the companies in the same industry.
  • TDG has a Return On Invested Capital of 15.28%. This is amongst the best in the industry. TDG outperforms 93.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TDG is above the industry average of 9.24%.
  • 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

  • TDG has a better Profit Margin (19.85%) than 98.73% of its industry peers.
  • In the last couple of years the Profit Margin of TDG has grown nicely.
  • The Operating Margin of TDG (47.11%) is better than 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of TDG has grown nicely.
  • TDG's Gross Margin of 59.90% is amongst the best of the industry. TDG outperforms 91.14% of its industry peers.
  • 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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3

2. TDG Health Analysis

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.
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

  • Based on the Altman-Z score of 1.77, we must say that TDG is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 1.77, TDG is not doing good in the industry: 77.22% of the companies in the same industry are doing better.
  • TDG has a debt to FCF ratio of 16.00. This is a negative value and a sign of low solvency as TDG would need 16.00 years to pay back of all of its debts.
  • TDG has a Debt to FCF ratio (16.00) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Altman-Z 1.77
ROIC/WACC1.56
WACC9.79%
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.
  • The Current ratio of TDG (2.75) is comparable to the rest of the industry.
  • 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 Quick ratio (1.81) which is in line with 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. TDG Growth Analysis

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

  • Based on estimates for the next years, TDG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.48% on average per year.
  • TDG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.32% yearly.
EPS Next Y5.42%
EPS Next 2Y11.13%
EPS Next 3Y12.63%
EPS Next 5Y12.48%
Revenue Next Year13.89%
Revenue Next 2Y10.96%
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. TDG Valuation Analysis

4.1 Price/Earnings Ratio

  • TDG is valuated quite expensively with a Price/Earnings ratio of 30.19.
  • Compared to the rest of the industry, the Price/Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 70.89% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.88, TDG is valued a bit more expensive.
  • A Price/Forward Earnings ratio of 24.71 indicates a rather expensive valuation of TDG.
  • TDG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 77.22% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, TDG is valued at the same level.
Industry RankSector Rank
PE 30.19
Fwd PE 24.71
TDG Price Earnings VS Forward Price EarningsTDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 68.35% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDG indicates a rather cheap valuation: TDG is cheaper than 82.28% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 34.28
EV/EBITDA 19.53
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 an expensive valuation of the company.
  • 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 12.63% in the coming years.
PEG (NY)5.57
PEG (5Y)1.44
EPS Next 2Y11.13%
EPS Next 3Y12.63%

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5

5. TDG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 7.89%, TDG is a good candidate for dividend investing.
  • TDG's Dividend Yield is rather good when compared to the industry average which is at 0.37. 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 1.89.
Industry RankSector Rank
Dividend Yield 7.89%

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.
  • TDG has decreased its dividend 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

  • TDG pays out 292.70% of its income as dividend. This is not a sustainable payout ratio.
  • TDG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP292.7%
EPS Next 2Y11.13%
EPS Next 3Y12.63%
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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TDG Fundamentals: All Metrics, Ratios and Statistics

TRANSDIGM GROUP INC

NYSE:TDG (3/27/2026, 8:04:00 PM)

After market: 1135.52 -4.51 (-0.4%)

1140.03

-11.91 (-1.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners96.31%
Inst Owner Change-1.11%
Ins Owners0.28%
Ins Owner Change1.21%
Market Cap64.38B
Revenue(TTM)9.11B
Net Income(TTM)1.81B
Analysts77.14
Price Target1618.38 (41.96%)
Short Float %1.75%
Short Ratio2.58
Dividend
Industry RankSector Rank
Dividend Yield 7.89%
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%
PT rev (3m)1.72%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.33%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.9%
Valuation
Industry RankSector Rank
PE 30.19
Fwd PE 24.71
P/S 7.07
P/FCF 34.28
P/OCF 30.4
P/B N/A
P/tB N/A
EV/EBITDA 19.53
EPS(TTM)37.76
EY3.31%
EPS(NY)46.14
Fwd EY4.05%
FCF(TTM)33.26
FCFY2.92%
OCF(TTM)37.51
OCFY3.29%
SpS161.31
BVpS-164.16
TBVpS-427.27
PEG (NY)5.57
PEG (5Y)1.44
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 1.77
F-Score6
WACC9.79%
ROIC/WACC1.56
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 Y5.42%
EPS Next 2Y11.13%
EPS Next 3Y12.63%
EPS Next 5Y12.48%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%
Revenue Next Year13.89%
Revenue Next 2Y10.96%
Revenue Next 3Y9.77%
Revenue Next 5Y8.32%
EBIT growth 1Y11.51%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year23.26%
EBIT Next 3Y13.76%
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 Fundamental Analysis 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 5 / 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.


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

The Price/Earnings (PE) ratio for TRANSDIGM GROUP INC (TDG) is 30.19 and the Price/Book (PB) ratio is -6.94.


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 5.42% in the next year.