TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1297.37 USD
-2.63 (-0.2%)
Taking everything into account, TDG scores 6 out of 10 in our fundamental rating. TDG was compared to 71 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
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.
In the past 5 years TDG always reported a positive cash flow from operatings.
1.2 Ratios
TDG's Return On Assets of 7.71% is amongst the best of the industry. TDG outperforms 84.51% of its industry peers.
With an excellent Return On Invested Capital value of 14.57%, TDG belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
TDG had an Average Return On Invested Capital over the past 3 years of 12.09%. This is above the industry average of 8.48%.
The 3 year average ROIC (12.09%) for TDG is below the current ROIC(14.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | N/A | ||
| ROIC | 14.57% |
ROA(3y)5.47%
ROA(5y)4.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.09%
ROIC(5y)10.39%
1.3 Margins
TDG has a better Profit Margin (20.41%) than 100.00% of its industry peers.
TDG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.88%, TDG belongs to the top 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.
With an excellent Gross Margin value of 60.12%, TDG belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
TDG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.88% | ||
| PM (TTM) | 20.41% | ||
| GM | 60.12% |
OM growth 3Y7.74%
OM growth 5Y2.75%
PM growth 3Y13.82%
PM growth 5Y4.58%
GM growth 3Y3.98%
GM growth 5Y1.47%
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.
Compared to 1 year ago, TDG has more shares outstanding
The number of shares outstanding for TDG has been increased compared to 5 years ago.
TDG has a better debt/assets ratio than last year.
2.2 Solvency
TDG has an Altman-Z score of 2.43. 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.
Looking at the Altman-Z score, with a value of 2.43, TDG is doing worse than 66.20% of the companies in the same industry.
TDG has a debt to FCF ratio of 13.12. This is a negative value and a sign of low solvency as TDG would need 13.12 years to pay back of all of its debts.
TDG has a Debt to FCF ratio (13.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.58
WACC9.23%
2.3 Liquidity
A Current Ratio of 3.13 indicates that TDG has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.13, TDG is doing good in the industry, outperforming 66.20% of the companies in the same industry.
A Quick Ratio of 2.19 indicates that TDG has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.19, TDG is doing good in the industry, outperforming 71.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.02%, which is quite good.
TDG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.77% yearly.
TDG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.79%.
The Revenue has been growing by 8.74% on average over the past years. This is quite good.
EPS 1Y (TTM)13.02%
EPS 3Y40.97%
EPS 5Y12.77%
EPS Q2Q%6.67%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
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 10.78% yearly.
TDG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.70% yearly.
EPS Next Y9.12%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
EPS Next 5Y10.78%
Revenue Next Year10.97%
Revenue Next 2Y11.19%
Revenue Next 3Y9.99%
Revenue Next 5Y8.7%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.67, which means the current valuation is very expensive for TDG.
Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (26.51), we can say TDG is valued slightly more expensively.
With a Price/Forward Earnings ratio of 32.10, TDG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 61.97% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TDG to the average of the S&P500 Index (22.53), we can say TDG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.67 | ||
| Fwd PE | 32.1 |
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 67.61% 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 74.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.36 | ||
| EV/EBITDA | 21.62 |
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.
PEG (NY)3.91
PEG (5Y)2.79
EPS Next 2Y9.07%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.88%, TDG is a good candidate for dividend investing.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.10. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
5.2 History
The dividend of TDG has a limited annual growth rate of 2.56%.
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)2.56%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
251.06% of the earnings are spent on dividend by TDG. This is not a sustainable payout ratio.
TDG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP251.06%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
NYSE:TDG (11/4/2025, 10:09:05 AM)
1297.37
-2.63 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change-0.32%
Ins Owners0.28%
Ins Owner Change-3.76%
Market Cap73.11B
Revenue(TTM)8.58B
Net Income(TTM)1.75B
Analysts82.31
Price Target1586.59 (22.29%)
Short Float %1.95%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
Yearly Dividend36.65
Dividend Growth(5Y)2.56%
DP251.06%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.01%
Min EPS beat(2)-4.8%
Max EPS beat(2)0.78%
EPS beat(4)3
Avg EPS beat(4)0.52%
Min EPS beat(4)-4.8%
Max EPS beat(4)4.79%
EPS beat(8)7
Avg EPS beat(8)3.61%
EPS beat(12)11
Avg EPS beat(12)5.11%
EPS beat(16)14
Avg EPS beat(16)5.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-3.49%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)-0.41%
Revenue beat(8)3
Avg Revenue beat(8)-0.08%
Revenue beat(12)6
Avg Revenue beat(12)0.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.24%
PT rev (1m)-3.45%
PT rev (3m)-5.62%
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 | 35.67 | ||
| Fwd PE | 32.1 | ||
| P/S | 8.52 | ||
| P/FCF | 38.36 | ||
| P/OCF | 34.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.62 |
EPS(TTM)36.37
EY2.8%
EPS(NY)40.42
Fwd EY3.12%
FCF(TTM)33.82
FCFY2.61%
OCF(TTM)37.32
OCFY2.88%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.91
PEG (5Y)2.79
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | N/A | ||
| ROCE | 19.63% | ||
| ROIC | 14.57% | ||
| ROICexc | 16.78% | ||
| ROICexgc | 71% | ||
| OM | 46.88% | ||
| PM (TTM) | 20.41% | ||
| GM | 60.12% | ||
| FCFM | 22.22% |
ROA(3y)5.47%
ROA(5y)4.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.09%
ROIC(5y)10.39%
ROICexc(3y)15.91%
ROICexc(5y)13.84%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.13%
ROCE(5y)13.86%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y26.62%
ROICexc growth 5Y11.93%
OM growth 3Y7.74%
OM growth 5Y2.75%
PM growth 3Y13.82%
PM growth 5Y4.58%
GM growth 3Y3.98%
GM growth 5Y1.47%
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Debt/EBITDA | 5.68 | ||
| Cap/Depr | 54.12% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 47.95% | ||
| Profit Quality | 108.85% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 2.43 |
F-Score7
WACC9.23%
ROIC/WACC1.58
Cap/Depr(3y)50.6%
Cap/Depr(5y)46.08%
Cap/Sales(3y)2.13%
Cap/Sales(5y)2.13%
Profit Quality(3y)110.44%
Profit Quality(5y)136%
High Growth Momentum
Growth
EPS 1Y (TTM)13.02%
EPS 3Y40.97%
EPS 5Y12.77%
EPS Q2Q%6.67%
EPS Next Y9.12%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
EPS Next 5Y10.78%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
Revenue Next Year10.97%
Revenue Next 2Y11.19%
Revenue Next 3Y9.99%
Revenue Next 5Y8.7%
EBIT growth 1Y13.94%
EBIT growth 3Y27.44%
EBIT growth 5Y11.72%
EBIT Next Year30.42%
EBIT Next 3Y15.68%
EBIT Next 5Y12.49%
FCF growth 1Y81.35%
FCF growth 3Y32.51%
FCF growth 5Y15.52%
OCF growth 1Y77.32%
OCF growth 3Y30.84%
OCF growth 5Y15.03%
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 8 / 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 9.12% in the next year.
Is the dividend of TRANSDIGM GROUP INC sustainable?
The dividend rating of TRANSDIGM GROUP INC (TDG) is 6 / 10 and the dividend payout ratio is 251.06%.