TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TDG • US8936411003

1300.1 USD
+14.57 (+1.13%)
At close: Feb 9, 2026
1313.5 USD
+13.4 (+1.03%)
Pre-Market: 2/10/2026, 8:41:56 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TDG. TDG was compared to 73 industry peers in the Aerospace & Defense industry. TDG scores excellent on profitability, but there are some minor concerns on its financial health. TDG is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

9

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.
  • 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 Return On Assets of 8.15%. This is amongst the best in the industry. TDG outperforms 89.04% of its industry peers.
  • With an excellent Return On Invested Capital value of 15.43%, TDG belongs to the best of the industry, outperforming 93.15% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TDG is significantly above the industry average of 8.70%.
  • The 3 year average ROIC (14.06%) for TDG is below the current ROIC(15.43%), indicating increased profibility in the last year.
Industry RankSector 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%
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 (21.13%) 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 47.96%, 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.
  • TDG has a Gross Margin of 60.61%. This is amongst the best in the industry. TDG outperforms 90.41% of its industry peers.
  • In the last couple of years the Gross Margin of TDG has grown nicely.
Industry RankSector 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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • The number of shares outstanding for TDG has been increased compared to 5 years ago.
  • The debt/assets ratio for TDG is higher compared to a year ago.
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 1.95 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 1.95, TDG is doing worse than 69.86% of the companies in the same industry.
  • 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.
  • With a Debt to FCF ratio value of 16.53, TDG perfoms like the industry average, outperforming 50.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16.53
Altman-Z 1.95
ROIC/WACC1.61
WACC9.57%
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 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 65.75% of the companies in the same industry.
  • TDG has a Quick Ratio of 2.25. This indicates that TDG is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of TDG (2.25) is better than 64.38% of its industry peers.
Industry RankSector Rank
Current Ratio 3.21
Quick Ratio 2.25
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. Growth

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.
  • 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)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 13.74% yearly.
  • TDG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y5.52%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
EPS Next 5Y13.74%
Revenue Next Year13.1%
Revenue Next 2Y10.5%
Revenue Next 3Y9.45%
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.
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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 34.43, TDG can be considered very expensive at the moment.
  • TDG's Price/Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 78.08% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.06. TDG is valued slightly more expensive when compared to this.
  • A Price/Forward Earnings ratio of 28.01 indicates a quite expensive valuation of TDG.
  • Based on the Price/Forward Earnings ratio, TDG is valued cheaper than 82.19% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, TDG is valued at the same level.
Industry RankSector Rank
PE 34.43
Fwd PE 28.01
TDG Price Earnings VS Forward Price EarningsTDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 71.23% of the companies in the same industry are more expensive than TDG, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 76.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 40.32
EV/EBITDA 21.67
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 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.24
PEG (5Y)1.65
EPS Next 2Y11.46%
EPS Next 3Y12.79%

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

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 6.92%, TDG is a good candidate for dividend investing.
  • TDG's Dividend Yield is rather good when compared to the industry average which is at 0.36. 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 1.80.
Industry RankSector Rank
Dividend Yield 6.92%

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 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

  • 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 2Y11.46%
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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TRANSDIGM GROUP INC

NYSE:TDG (2/9/2026, 10:33:52 PM)

Premarket: 1313.5 +13.4 (+1.03%)

1300.1

+14.57 (+1.13%)

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-2.03%
Ins Owners0.28%
Ins Owner Change-2.55%
Market Cap73.22B
Revenue(TTM)9.11B
Net Income(TTM)1.87B
Analysts79.23
Price Target1638.47 (26.03%)
Short Float %2.18%
Short Ratio3.76
Dividend
Industry RankSector Rank
Dividend Yield 6.92%
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)2.99%
PT rev (3m)3.27%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)0.91%
EPS NY rev (3m)-2.47%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.53%
Valuation
Industry RankSector Rank
PE 34.43
Fwd PE 28.01
P/S 8.29
P/FCF 40.32
P/OCF 35.93
P/B N/A
P/tB N/A
EV/EBITDA 21.67
EPS(TTM)37.76
EY2.9%
EPS(NY)46.41
Fwd EY3.57%
FCF(TTM)32.24
FCFY2.48%
OCF(TTM)36.19
OCFY2.78%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)6.24
PEG (5Y)1.65
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 1.95
F-Score8
WACC9.57%
ROIC/WACC1.61
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 5Y13.74%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%
Revenue Next Year13.1%
Revenue Next 2Y10.5%
Revenue Next 3Y9.45%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year22.56%
EBIT Next 3Y13.54%
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 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 9 / 10.


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

The Price/Earnings (PE) ratio for TRANSDIGM GROUP INC (TDG) is 34.43 and the Price/Book (PB) ratio is -7.56.


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.