TRANSDIGM GROUP INC (TDG) Fundamental Analysis & Valuation

NYSE:TDG • US8936411003

Current stock price

1190.77 USD
-14.9 (-1.24%)
Last:

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.
  • Each year in the past 5 years TDG had a positive operating cash flow.
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 78.75% 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 93.75% of its industry peers.
  • TDG had an Average Return On Invested Capital over the past 3 years of 14.06%. This is above the industry average of 9.30%.
  • The last Return On Invested Capital (15.28%) for TDG is above the 3 year average (14.06%), which is a sign of increasing profitability.
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 98.75% of its industry peers.
  • In the last couple of years the Profit Margin of TDG has grown nicely.
  • Looking at the Operating Margin, with a value of 47.11%, 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 Operating Margin of TDG has grown nicely.
  • The Gross Margin of TDG (59.90%) is better than 92.50% of its industry peers.
  • TDG's Gross Margin has improved in the last couple of years.
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.
  • The number of shares outstanding for TDG has been increased compared to 1 year ago.
  • The number of shares outstanding for TDG has been increased compared to 5 years ago.
  • Compared to 1 year ago, TDG has a worse debt to assets ratio.
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

  • An Altman-Z score of 1.84 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • TDG's Altman-Z score of 1.84 is on the low side compared to the rest of the industry. TDG is outperformed by 78.75% of its industry peers.
  • 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's Debt to FCF ratio of 16.00 is in line compared to the rest of the industry. TDG outperforms 53.75% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Altman-Z 1.84
ROIC/WACC1.52
WACC10.05%
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.
  • TDG has a Current ratio (2.75) which 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 comparable to the rest of the industry.
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.
  • The Earnings Per Share has been growing by 20.91% on average over the past years. This is a very strong growth
  • 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

  • TDG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.48% yearly.
  • The Revenue is expected to grow by 8.32% on average over the next years. This is quite good.
EPS Next Y5.49%
EPS Next 2Y11.27%
EPS Next 3Y12.82%
EPS Next 5Y12.48%
Revenue Next Year14.49%
Revenue Next 2Y11.53%
Revenue Next 3Y10.25%
Revenue Next 5Y8.32%

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.
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

  • A Price/Earnings ratio of 31.54 indicates a quite expensive valuation of TDG.
  • Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
  • TDG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.66, which is the current average of the S&P500 Index.
  • TDG is valuated quite expensively with a Price/Forward Earnings ratio of 25.74.
  • 76.25% of the companies in the same industry are more expensive than TDG, based on the Price/Forward Earnings ratio.
  • TDG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 38.00, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 31.54
Fwd PE 25.74
TDG Price Earnings VS Forward Price EarningsTDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • 67.50% of the companies in the same industry are more expensive than TDG, based on the Enterprise Value to EBITDA ratio.
  • 81.25% of the companies in the same industry are more expensive than TDG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 35.81
EV/EBITDA 20.33
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 TDG does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of TDG may justify a higher PE ratio.
  • TDG's earnings are expected to grow with 12.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.74
PEG (5Y)1.51
EPS Next 2Y11.27%
EPS Next 3Y12.82%

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6

5. TDG Dividend Analysis

5.1 Amount

  • TDG has a Yearly Dividend Yield of 7.11%, which is a nice return.
  • TDG's Dividend Yield is rather good when compared to the industry average which is at 0.35. TDG pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, TDG pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.11%

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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)36.77%
Div Incr Years3
Div Non Decr Years3
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 2Y11.27%
EPS Next 3Y12.82%
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 (4/22/2026, 12:21:04 PM)

1190.77

-14.9 (-1.24%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-03
Earnings (Next)05-12
Inst Owners96.41%
Inst Owner Change0.08%
Ins Owners0.28%
Ins Owner Change1.21%
Market Cap67.24B
Revenue(TTM)9.11B
Net Income(TTM)1.81B
Analysts75.71
Price Target1581.82 (32.84%)
Short Float %1.88%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 7.11%
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP292.7%
Div Incr Years3
Div Non Decr Years3
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)-2.26%
PT rev (3m)-2.69%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.37%
Valuation
Industry RankSector Rank
PE 31.54
Fwd PE 25.74
P/S 7.38
P/FCF 35.81
P/OCF 31.75
P/B N/A
P/tB N/A
EV/EBITDA 20.33
EPS(TTM)37.76
EY3.17%
EPS(NY)46.26
Fwd EY3.88%
FCF(TTM)33.26
FCFY2.79%
OCF(TTM)37.51
OCFY3.15%
SpS161.31
BVpS-164.16
TBVpS-427.27
PEG (NY)5.74
PEG (5Y)1.51
Graham Number0 (-100%)
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 1.84
F-Score6
WACC10.05%
ROIC/WACC1.52
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 Y5.49%
EPS Next 2Y11.27%
EPS Next 3Y12.82%
EPS Next 5Y12.48%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%
Revenue Next Year14.49%
Revenue Next 2Y11.53%
Revenue Next 3Y10.25%
Revenue Next 5Y8.32%
EBIT growth 1Y11.51%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year23.28%
EBIT Next 3Y13.79%
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.


What is the valuation status of TRANSDIGM GROUP INC (TDG) stock?

ChartMill assigns a valuation rating of 5 / 10 to TRANSDIGM GROUP INC (TDG). This can be considered as Fairly Valued.


How profitable is TRANSDIGM GROUP INC (TDG) stock?

TRANSDIGM GROUP INC (TDG) has a profitability rating of 8 / 10.


What are the PE and PB ratios of TRANSDIGM GROUP INC (TDG) stock?

The Price/Earnings (PE) ratio for TRANSDIGM GROUP INC (TDG) is 31.54 and the Price/Book (PB) ratio is -7.25.


Can you provide the dividend sustainability for TDG stock?

The dividend rating of TRANSDIGM GROUP INC (TDG) is 6 / 10 and the dividend payout ratio is 292.7%.