TRANSDIGM GROUP INC (TDG) Fundamental Analysis & Valuation

NYSE:TDG • US8936411003

1326.34 USD
+10.08 (+0.77%)
At close: Mar 3, 2026
1326.34 USD
0 (0%)
After Hours: 3/3/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This TDG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

TDG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 78 industry peers in the Aerospace & Defense industry. TDG scores excellent on profitability, but there are concerns on its financial health. TDG has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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.
  • TDG had positive earnings in each of the past 5 years.
  • 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

  • TDG has a better Return On Assets (7.61%) than 78.21% of its industry peers.
  • TDG's Return On Invested Capital of 15.28% is amongst the best of the industry. TDG outperforms 93.59% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TDG is above the industry average of 9.15%.
  • 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

  • With an excellent Profit Margin value of 19.85%, TDG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TDG has grown nicely.
  • TDG's Operating Margin of 47.11% 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.
  • TDG's Gross Margin of 59.90% is amongst the best of the industry. TDG outperforms 91.03% 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

  • 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.
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 1.97 indicates that TDG is not a great score, but indicates 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 73.08% 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 has a Debt to FCF ratio (16.00) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Altman-Z 1.97
ROIC/WACC1.72
WACC8.87%
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

  • A Current Ratio of 2.75 indicates that TDG has no problem at all paying its short term obligations.
  • With a Current ratio value of 2.75, TDG perfoms like the industry average, outperforming 50.00% of the companies in the same 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

  • The Earnings Per Share has grown by an nice 8.98% 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 11.67% in the last year.
  • The Revenue has been growing by 11.59% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 12.48% on average over the next years. This is quite good.
  • TDG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.32% yearly.
EPS Next Y5.52%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
EPS Next 5Y12.48%
Revenue Next Year13.78%
Revenue Next 2Y10.91%
Revenue Next 3Y9.77%
Revenue Next 5Y8.32%

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.
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

  • Based on the Price/Earnings ratio of 35.13, the valuation of TDG can be described as expensive.
  • Based on the Price/Earnings ratio, TDG is valued a bit cheaper than 74.36% of the companies in the same industry.
  • TDG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.83.
  • A Price/Forward Earnings ratio of 28.58 indicates a quite expensive valuation of TDG.
  • Based on the Price/Forward Earnings ratio, TDG is valued cheaper than 80.77% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of TDG to the average of the S&P500 Index (24.95), we can say TDG is valued inline with the index average.
Industry RankSector Rank
PE 35.13
Fwd PE 28.58
TDG Price Earnings VS Forward Price EarningsTDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than 71.79% of the companies in the same industry.
  • 82.05% 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 39.88
EV/EBITDA 21.79
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 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 12.79% in the coming years.
PEG (NY)6.36
PEG (5Y)1.68
EPS Next 2Y11.46%
EPS Next 3Y12.79%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TDG Dividend Analysis

5.1 Amount

  • TDG has a Yearly Dividend Yield of 6.91%, which is a nice return.
  • Compared to an average industry Dividend Yield of 0.34, TDG pays a better dividend. On top of this TDG pays more dividend than 97.44% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, TDG pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.91%

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
TDG Yearly Dividends per shareTDG Yearly Dividends per shareYearly Dividends per share 2019 2022 2023 2024 2025 20 40 60 80

5.3 Sustainability

  • 292.70% 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.
DP292.7%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
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 (3/3/2026, 8:04:00 PM)

After market: 1326.34 0 (0%)

1326.34

+10.08 (+0.77%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners97.69%
Inst Owner Change-1.11%
Ins Owners0.28%
Ins Owner Change-1.84%
Market Cap74.90B
Revenue(TTM)9.11B
Net Income(TTM)1.81B
Analysts78.52
Price Target1618.38 (22.02%)
Short Float %2.02%
Short Ratio3
Dividend
Industry RankSector Rank
Dividend Yield 6.91%
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP292.7%
Div Incr Years2
Div Non Decr Years2
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)-0.44%
PT rev (3m)2.99%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-2.47%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.13%
Valuation
Industry RankSector Rank
PE 35.13
Fwd PE 28.58
P/S 8.22
P/FCF 39.88
P/OCF 35.36
P/B N/A
P/tB N/A
EV/EBITDA 21.79
EPS(TTM)37.76
EY2.85%
EPS(NY)46.41
Fwd EY3.5%
FCF(TTM)33.26
FCFY2.51%
OCF(TTM)37.51
OCFY2.83%
SpS161.31
BVpS-164.16
TBVpS-427.27
PEG (NY)6.36
PEG (5Y)1.68
Graham NumberN/A
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 1.97
F-Score6
WACC8.87%
ROIC/WACC1.72
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 Y5.52%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
EPS Next 5Y12.48%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%
Revenue Next Year13.78%
Revenue Next 2Y10.91%
Revenue Next 3Y9.77%
Revenue Next 5Y8.32%
EBIT growth 1Y11.51%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year23.19%
EBIT Next 3Y13.76%
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 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 5 / 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.


Can you provide the PE and PB ratios for TDG stock?

The Price/Earnings (PE) ratio for TRANSDIGM GROUP INC (TDG) is 35.13 and the Price/Book (PB) ratio is -8.08.


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 5.52% in the next year.