TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDG - US8936411003 - Common Stock
1450 USD
+16.46 (+1.15%)
1455.25 USD
+5.25 (+0.36%)
TDG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. While TDG has a great profitability rating, 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.
- In the past year TDG had a positive cash flow from operations.
- Each year in the past 5 years TDG has been profitable.
- In the past 5 years TDG always reported a positive cash flow from operatings.
1.2 Ratios
- TDG's Return On Assets of 8.15% is amongst the best of the industry. TDG outperforms 87.32% of its industry peers.
- TDG's Return On Invested Capital of 15.43% is amongst the best of the industry. TDG outperforms 94.37% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TDG is significantly above the industry average of 8.54%.
- 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.
- In the last couple of years the Profit Margin of TDG has grown nicely.
- TDG has a better Operating Margin (47.96%) than 100.00% of its industry peers.
- 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 90.14% of its industry peers.
- In the last couple of years the Gross Margin of TDG has grown nicely.
| 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
- TDG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
- Compared to 1 year ago, TDG has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.09 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.09, TDG is not doing good in the industry: 73.24% of the companies in the same industry are doing better.
- 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 (16.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 2.09 |
ROIC/WACC1.68
WACC9.18%
2.3 Liquidity
- A Current Ratio of 3.21 indicates that TDG has no problem at all paying its short term obligations.
- TDG's Current ratio of 3.21 is fine compared to the rest of the industry. TDG outperforms 66.20% of its industry peers.
- A Quick Ratio of 2.25 indicates that TDG has no problem at all paying its short term obligations.
- TDG has a better Quick ratio (2.25) than 64.79% 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 13.74% yearly.
- Based on estimates for the next years, TDG will show a small growth in Revenue. The Revenue will grow by 7.87% on average per year.
EPS Next Y4.56%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
EPS Next 5Y13.74%
Revenue Next Year12.88%
Revenue Next 2Y10.43%
Revenue Next 3Y9.35%
Revenue Next 5Y7.87%
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.
- 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 38.81, TDG can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
- TDG is valuated rather expensively when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 37.12, 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 64.79% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. TDG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.81 | ||
| Fwd PE | 37.12 |
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 66.20% of the companies listed in the same industry.
- TDG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TDG is cheaper than 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.97 | ||
| EV/EBITDA | 23.3 |
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 12.94% in the coming years.
PEG (NY)8.51
PEG (5Y)1.86
EPS Next 2Y11.63%
EPS Next 3Y12.94%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.47%, TDG is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.37, 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 1.89, TDG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
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 2Y11.63%
EPS Next 3Y12.94%
1450
+16.46 (+1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-12 2025-11-12/bmo
Earnings (Next)02-02 2026-02-02/bmo
Inst Owners97.69%
Inst Owner Change0.07%
Ins Owners0.28%
Ins Owner Change-2.99%
Market Cap81.66B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts79.23
Price Target1590.96 (9.72%)
Short Float %2.17%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP516.02%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.34%
PT rev (3m)-2.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.45%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.81 | ||
| Fwd PE | 37.12 | ||
| P/S | 9.25 | ||
| P/FCF | 44.97 | ||
| P/OCF | 40.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.3 |
EPS(TTM)37.36
EY2.58%
EPS(NY)39.06
Fwd EY2.69%
FCF(TTM)32.24
FCFY2.22%
OCF(TTM)36.19
OCFY2.5%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)8.51
PEG (5Y)1.86
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 | 2.09 |
F-Score8
WACC9.18%
ROIC/WACC1.68
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 Y4.56%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
EPS Next 5Y13.74%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
Revenue Next Year12.88%
Revenue Next 2Y10.43%
Revenue Next 3Y9.35%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year21.95%
EBIT Next 3Y13.19%
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
Can you provide the ChartMill fundamental rating for TRANSDIGM GROUP INC?
ChartMill assigns a fundamental rating of 6 / 10 to TDG.
Can you provide the valuation status for TRANSDIGM GROUP INC?
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.
Can you provide the PE and PB ratios for TDG stock?
The Price/Earnings (PE) ratio for TRANSDIGM GROUP INC (TDG) is 38.81 and the Price/Book (PB) ratio is -8.43.
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 4.56% in the next year.