TRANSDIGM GROUP INC (TDG) Fundamental Analysis & Valuation

NYSE:TDG • US8936411003

Current stock price

1156.9 USD
-3.08 (-0.27%)
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.
  • In the past year TDG had a positive cash flow from operations.
  • In the past 5 years TDG has always been profitable.
  • In the past 5 years TDG always reported a positive cash flow from operatings.
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.
  • The Return On Invested Capital of TDG (15.28%) is better than 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 9.41%.
  • The 3 year average ROIC (14.06%) for TDG is below the current ROIC(15.28%), indicating increased profibility in the last year.
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.
  • With an excellent Operating Margin value of 47.11%, 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 Operating Margin of TDG has grown nicely.
  • TDG has a better Gross Margin (59.90%) 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

  • TDG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for TDG has been increased compared to 1 year ago.
  • TDG has more shares outstanding than it did 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

  • TDG has an Altman-Z score of 1.79. This is a bad value and indicates that TDG is not financially healthy and even has some risk of bankruptcy.
  • TDG has a Altman-Z score of 1.79. This is amonst the worse of the industry: TDG underperforms 80.00% of its industry peers.
  • The Debt to FCF ratio of TDG is 16.00, which is on the high side as it means it would take TDG, 16.00 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 16.00, TDG is in line with its industry, outperforming 53.75% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Altman-Z 1.79
ROIC/WACC1.6
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 2.75 indicates that TDG has no problem at all paying its short term obligations.
  • TDG's Current ratio of 2.75 is in line compared to the rest of the industry. TDG outperforms 50.00% of its industry peers.
  • A Quick Ratio of 1.81 indicates that TDG should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.81, TDG perfoms like the industry average, outperforming 55.00% of the companies in the same 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

7

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.
  • TDG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.91% yearly.
  • Looking at the last year, TDG shows a quite strong growth in Revenue. The Revenue has grown by 11.67% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 12.40% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 10.63% on average over the next years. This is quite good.
EPS Next Y5.49%
EPS Next 2Y11.27%
EPS Next 3Y12.82%
EPS Next 5Y12.4%
Revenue Next Year14.49%
Revenue Next 2Y11.53%
Revenue Next 3Y10.25%
Revenue Next 5Y10.63%

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 stable: in the next years the growth will be about the same 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 5B 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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4

4. TDG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 30.64, the valuation of TDG can be described as expensive.
  • 68.75% of the companies in the same industry are more expensive than TDG, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (26.77), we can say TDG is valued inline with the index average.
  • TDG is valuated quite expensively with a Price/Forward Earnings ratio of 25.01.
  • Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than 76.25% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.75, TDG is valued at the same level.
Industry RankSector Rank
PE 30.64
Fwd PE 25.01
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 the industry average as 67.50% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than 77.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.79
EV/EBITDA 19.77
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.
  • 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 12.82% in the coming years.
PEG (NY)5.58
PEG (5Y)1.47
EPS Next 2Y11.27%
EPS Next 3Y12.82%

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

6

5. TDG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 7.84%, TDG is a good candidate for dividend investing.
  • TDG's Dividend Yield is rather good when compared to the industry average which is at 0.38. TDG pays more dividend than 100.00% of the companies 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 7.84%

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 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

  • 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 2Y11.27%
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 (5/1/2026, 1:36:09 PM)

1156.9

-3.08 (-0.27%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Industry Strength73.91
Industry Growth87.58
Earnings (Last)02-03
Earnings (Next)05-12
Inst Owners96.41%
Inst Owner Change0.04%
Ins Owners0.28%
Ins Owner Change1.21%
Market Cap65.33B
Revenue(TTM)9.11B
Net Income(TTM)1.81B
Analysts75.71
Price Target1581.82 (36.73%)
Short Float %1.86%
Short Ratio2.71
Dividend
Industry RankSector Rank
Dividend Yield 7.84%
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)0.98%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.16%
Valuation
Industry RankSector Rank
PE 30.64
Fwd PE 25.01
P/S 7.17
P/FCF 34.79
P/OCF 30.85
P/B N/A
P/tB N/A
EV/EBITDA 19.77
EPS(TTM)37.76
EY3.26%
EPS(NY)46.26
Fwd EY4%
FCF(TTM)33.26
FCFY2.87%
OCF(TTM)37.51
OCFY3.24%
SpS161.31
BVpS-164.16
TBVpS-427.27
PEG (NY)5.58
PEG (5Y)1.47
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 1.79
F-Score6
WACC9.57%
ROIC/WACC1.6
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 5Y12.4%
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 5Y10.63%
EBIT growth 1Y11.51%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year23.28%
EBIT Next 3Y13.79%
EBIT Next 5Y12.8%
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 4 / 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 30.64 and the Price/Book (PB) ratio is -7.05.


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%.