TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1293.08 USD
+15.09 (+1.18%)
1293.08 USD
0 (0%)
TDG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. While TDG belongs to the best of the industry regarding profitability, 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.
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 better Return On Assets (7.71%) than 85.51% of its industry peers.
TDG has a better Return On Invested Capital (14.57%) than 92.75% 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 8.33%.
The 3 year average ROIC (12.09%) for TDG is below the current ROIC(14.57%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 20.41%, TDG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TDG has grown nicely.
The Operating Margin of TDG (46.88%) is better than 100.00% of its industry peers.
TDG's Operating Margin has improved in the last couple of years.
TDG has a Gross Margin of 60.12%. This is amongst the best in the industry. TDG outperforms 89.86% of its industry peers.
TDG's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, TDG has more shares outstanding
The number of shares outstanding for TDG has been increased compared to 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 2.42. 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 2.42 is on the low side compared to the rest of the industry. TDG is outperformed by 65.22% 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.
TDG has a Debt to FCF ratio (13.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.56
WACC9.34%
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 68.12% of its industry peers.
A Quick Ratio of 2.19 indicates that TDG has no problem at all paying its short term obligations.
The Quick ratio of TDG (2.19) is better than 72.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.02% over the past year.
Measured over the past years, TDG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.77% on average per year.
Looking at the last year, TDG shows a quite strong growth in Revenue. The Revenue has grown by 12.79% in the last year.
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.
Based on estimates for the next years, TDG will show a quite strong growth in Revenue. The Revenue will grow by 8.70% on average per year.
EPS Next Y9.88%
EPS Next 2Y11.18%
EPS Next 3Y12.36%
EPS Next 5Y10.78%
Revenue Next Year11.02%
Revenue Next 2Y10.51%
Revenue Next 3Y9.54%
Revenue Next 5Y8.7%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.55, which means the current valuation is very expensive for TDG.
Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (27.34), we can say TDG is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 30.79, the valuation of TDG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 65.22% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. TDG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 30.79 |
4.2 Price Multiples
TDG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TDG is cheaper than 65.22% of the companies in the same industry.
TDG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TDG is cheaper than 76.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.23 | ||
| EV/EBITDA | 21.53 |
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 12.36% in the coming years.
PEG (NY)3.6
PEG (5Y)2.78
EPS Next 2Y11.18%
EPS Next 3Y12.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.04%, TDG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.17, TDG pays a better dividend. On top of this TDG pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TDG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
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
TDG pays out 251.06% of its income as dividend. 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 2Y11.18%
EPS Next 3Y12.36%
1293.08
+15.09 (+1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change-0.12%
Ins Owners0.28%
Ins Owner Change-3.76%
Market Cap72.87B
Analysts82.31
Price Target1634.89 (26.43%)
Short Float %1.9%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
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)-1.37%
PT rev (3m)3.77%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 30.79 | ||
| P/S | 8.49 | ||
| P/FCF | 38.23 | ||
| P/OCF | 34.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.53 |
EPS(TTM)36.37
EY2.81%
EPS(NY)42
Fwd EY3.25%
FCF(TTM)33.82
FCFY2.62%
OCF(TTM)37.32
OCFY2.89%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.6
PEG (5Y)2.78
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 2.42 |
F-Score7
WACC9.34%
ROIC/WACC1.56
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 Y9.88%
EPS Next 2Y11.18%
EPS Next 3Y12.36%
EPS Next 5Y10.78%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
Revenue Next Year11.02%
Revenue Next 2Y10.51%
Revenue Next 3Y9.54%
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%