TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1341.82 USD
+16.78 (+1.27%)
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 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
TDG had positive earnings in the past year.
TDG had a positive operating cash flow in the past year.
TDG had positive earnings in each of the past 5 years.
TDG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDG has a Return On Assets of 8.15%. This is amongst the best in the industry. TDG outperforms 86.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.43%, TDG belongs to the top 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 8.47%.
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
The Profit Margin of TDG (21.13%) is better than 100.00% of its industry peers.
TDG's Profit Margin has improved in the last couple of years.
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.
TDG's Gross Margin of 60.61% is amongst the best of the industry. TDG outperforms 91.67% 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
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
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 70.83% of its industry peers.
The Debt to FCF ratio of TDG is 16.53, which is on the high side as it means it would take TDG, 16.53 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TDG (16.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.63
WACC9.49%
2.3 Liquidity
A Current Ratio of 3.21 indicates that TDG has no problem at all paying 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 66.67% of the companies in the same industry.
A Quick Ratio of 2.25 indicates that TDG has no problem at all paying its short term obligations.
TDG's Quick ratio of 2.25 is fine compared to the rest of the industry. TDG outperforms 72.22% 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
Looking at the last year, TDG shows a quite strong growth in Revenue. The Revenue has grown by 11.21% in the last year.
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 10.98% yearly.
The Revenue is expected to grow by 3.83% on average over the next years.
EPS Next Y8.2%
EPS Next 2Y11.88%
EPS Next 3Y13.44%
EPS Next 5Y10.98%
Revenue Next Year11.41%
Revenue Next 2Y9.5%
Revenue Next 3Y7.93%
Revenue Next 5Y3.83%
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
With a Price/Earnings ratio of 35.92, TDG can be considered very expensive at the moment.
TDG's Price/Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (25.91), we can say TDG is valued slightly more expensively.
With a Price/Forward Earnings ratio of 33.20, TDG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TDG to the average of the S&P500 Index (34.57), we can say TDG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.92 | ||
| Fwd PE | 33.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than the industry average as 65.28% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 70.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.64 | ||
| EV/EBITDA | 21.98 |
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 13.44% in the coming years.
PEG (NY)4.38
PEG (5Y)1.72
EPS Next 2Y11.88%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
TDG has a Yearly Dividend Yield of 6.79%, which is a nice return.
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.
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 | 6.79% |
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.
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.
TDG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP516.02%
EPS Next 2Y11.88%
EPS Next 3Y13.44%
NYSE:TDG (11/14/2025, 12:08:03 PM)
1341.82
+16.78 (+1.27%)
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 Cap75.61B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts82.31
Price Target1586.59 (18.24%)
Short Float %1.95%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
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)-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 | 35.92 | ||
| Fwd PE | 33.2 | ||
| P/S | 8.56 | ||
| P/FCF | 41.64 | ||
| P/OCF | 37.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.98 |
EPS(TTM)37.36
EY2.78%
EPS(NY)40.42
Fwd EY3.01%
FCF(TTM)32.23
FCFY2.4%
OCF(TTM)36.17
OCFY2.7%
SpS156.7
BVpS-171.89
TBVpS-421.51
PEG (NY)4.38
PEG (5Y)1.72
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
WACC9.49%
ROIC/WACC1.63
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 Y8.2%
EPS Next 2Y11.88%
EPS Next 3Y13.44%
EPS Next 5Y10.98%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
Revenue Next Year11.41%
Revenue Next 2Y9.5%
Revenue Next 3Y7.93%
Revenue Next 5Y3.83%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year22.18%
EBIT Next 3Y12.55%
EBIT Next 5Y11.25%
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 8.2% 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%.