TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDG - US8936411003 - Common Stock
1296.29 USD
-21.2 (-1.61%)
TDG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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.
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
TDG has a Return On Assets of 8.15%. This is amongst the best in the industry. TDG outperforms 87.50% of its industry peers.
With an excellent Return On Invested Capital value of 15.43%, TDG belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TDG is significantly above the industry average of 8.58%.
The 3 year average ROIC (14.06%) for TDG is below the current ROIC(15.43%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 21.13%, TDG belongs to the best 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 (47.96%) is better than 100.00% of its industry peers.
TDG's Operating Margin has improved in the last couple of years.
TDG has a better Gross Margin (60.61%) than 90.28% of its industry peers.
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
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.
Compared to 5 years ago, TDG has more shares outstanding
The debt/assets ratio for TDG is higher compared to a year ago.
2.2 Solvency
TDG has an Altman-Z score of 1.97. 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 1.97. This is in the lower half of the industry: TDG underperforms 73.61% of its industry peers.
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.
TDG has a Debt to FCF ratio of 16.53. This is comparable to the rest of the industry: TDG outperforms 51.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.64
WACC9.39%
2.3 Liquidity
A Current Ratio of 3.21 indicates that TDG has no problem at all paying its short term obligations.
The Current ratio of TDG (3.21) is better than 66.67% of its industry peers.
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 has a Quick ratio of 2.25. This is in the better half of the industry: TDG outperforms 69.44% 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.
The Earnings Per Share has been growing by 20.91% on average over the past years. This is a very strong growth
The Revenue has grown by 11.21% in the past year. This is quite good.
The Revenue has been growing by 11.59% on average over the past years. This is quite good.
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
Based on estimates for the next years, TDG will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.74% on average per year.
The Revenue is expected to grow by 7.87% on average over the next years.
EPS Next Y4.64%
EPS Next 2Y11.52%
EPS Next 3Y12.92%
EPS Next 5Y13.74%
Revenue Next Year12.85%
Revenue Next 2Y10.4%
Revenue Next 3Y9.34%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TDG is valuated quite expensively with a Price/Earnings ratio of 34.70.
Compared to the rest of the industry, the Price/Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 69.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (26.76), we can say TDG is valued slightly more expensively.
With a Price/Forward Earnings ratio of 33.16, TDG can be considered very expensive at the moment.
TDG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 63.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, TDG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.7 | ||
| Fwd PE | 33.16 |
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 65.28% of the companies listed in the same industry.
69.44% of the companies in the same industry are more expensive than TDG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.2 | ||
| EV/EBITDA | 21.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 12.92% in the coming years.
PEG (NY)7.48
PEG (5Y)1.66
EPS Next 2Y11.52%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.68%, TDG is a good candidate for dividend investing.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.12. TDG pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, TDG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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
5.3 Sustainability
516.02% of the earnings are spent on dividend by TDG. 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 2Y11.52%
EPS Next 3Y12.92%
NYSE:TDG (12/12/2025, 12:10:00 PM)
1296.29
-21.2 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.58%
Inst Owner Change0.31%
Ins Owners0.28%
Ins Owner Change-3.28%
Market Cap73.01B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts80
Price Target1585.5 (22.31%)
Short Float %2.14%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP516.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-0.07%
PT rev (3m)-4.35%
EPS NQ rev (1m)-6.46%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)-3.28%
EPS NY rev (3m)-9.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.7 | ||
| Fwd PE | 33.16 | ||
| P/S | 8.27 | ||
| P/FCF | 40.2 | ||
| P/OCF | 35.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.88 |
EPS(TTM)37.36
EY2.88%
EPS(NY)39.09
Fwd EY3.02%
FCF(TTM)32.24
FCFY2.49%
OCF(TTM)36.19
OCFY2.79%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)7.48
PEG (5Y)1.66
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 | 1.97 |
F-Score8
WACC9.39%
ROIC/WACC1.64
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 Y4.64%
EPS Next 2Y11.52%
EPS Next 3Y12.92%
EPS Next 5Y13.74%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
Revenue Next Year12.85%
Revenue Next 2Y10.4%
Revenue Next 3Y9.34%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year21.93%
EBIT Next 3Y13.17%
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
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 9 / 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 4.64% in the next year.
Is the dividend of TRANSDIGM GROUP INC sustainable?
The dividend rating of TRANSDIGM GROUP INC (TDG) is 5 / 10 and the dividend payout ratio is 516.02%.