TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1347.22 USD
+19.35 (+1.46%)
1347.22 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TDG. TDG was compared to 71 industry peers in the Aerospace & Defense industry. TDG has an excellent profitability rating, but there are some minor concerns on its financial health. TDG is not valued too expensively and it also shows a decent 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.
In the past 5 years TDG has always been profitable.
Each year in the past 5 years TDG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.15%, TDG belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.43%, TDG belongs to the best of the industry, outperforming 94.37% 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 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
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.
TDG's Operating Margin of 47.96% is amongst the best of the industry. TDG outperforms 100.00% of its industry peers.
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 91.55% 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.
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.
TDG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.98 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
TDG has a worse Altman-Z score (1.98) than 71.83% 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 50.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.65
WACC9.36%
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 64.79% 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 has a Quick ratio of 2.25. This is in the better half of the industry: TDG outperforms 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.95%, 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.
The Revenue has grown by 11.21% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 10.98% on average over the next years. This is quite good.
Based on estimates for the next years, TDG will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
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
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.
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
A Price/Earnings ratio of 36.06 indicates a quite expensive valuation of TDG.
TDG's Price/Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 67.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (25.45), we can say TDG is valued slightly more expensively.
With a Price/Forward Earnings ratio of 33.33, 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 61.97% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.46. TDG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 33.33 |
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 64.79% 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 somewhat cheap valuation: TDG is cheaper than 70.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.8 | ||
| EV/EBITDA | 22.01 |
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.
TDG's earnings are expected to grow with 13.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.4
PEG (5Y)1.72
EPS Next 2Y11.88%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
TDG has a Yearly Dividend Yield of 6.78%, which is a nice return.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.38. 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
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
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 2Y11.88%
EPS Next 3Y13.44%
1347.22
+19.35 (+1.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change0.39%
Ins Owners0.28%
Ins Owner Change-4.23%
Market Cap75.92B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts82.31
Price Target1571.4 (16.64%)
Short Float %2.06%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
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)-1.96%
EPS NQ rev (3m)-7.92%
EPS NY rev (1m)-3.76%
EPS NY rev (3m)-7.97%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 33.33 | ||
| P/S | 8.6 | ||
| P/FCF | 41.8 | ||
| P/OCF | 37.25 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.01 |
EPS(TTM)37.36
EY2.77%
EPS(NY)40.42
Fwd EY3%
FCF(TTM)32.23
FCFY2.39%
OCF(TTM)36.17
OCFY2.68%
SpS156.7
BVpS-171.89
TBVpS-421.51
PEG (NY)4.4
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 | 1.98 |
F-Score8
WACC9.36%
ROIC/WACC1.65
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%.