TRANSDIGM GROUP INC (TDG)
US8936411003 - Common Stock
Taking everything into account, TDG scores 5 out of 10 in our fundamental rating. TDG was compared to 65 industry peers in the Aerospace & Defense industry. TDG scores excellent on profitability, but there are concerns on its financial health. TDG shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
TDG had positive earnings in the past year.
In the past year TDG had a positive cash flow from operations.
Each year in the past 5 years TDG has been profitable.
TDG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TDG (5.79%) is better than 72.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.15%, TDG belongs to the top of the industry, outperforming 95.38% 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 7.69%.
The last Return On Invested Capital (14.15%) for TDG is above the 3 year average (12.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | N/A | ||
| ROIC | 14.15% |
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 (18.65%) than 96.92% 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 45.92%, 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.
The Gross Margin of TDG (59.74%) is better than 93.85% of its industry peers.
TDG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.92% | ||
| PM (TTM) | 18.65% | ||
| GM | 59.74% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TDG 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.
TDG has a better debt/assets ratio than last year.
2.2 Solvency
TDG has an Altman-Z score of 1.88. 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.
TDG's Altman-Z score of 1.88 is on the low side compared to the rest of the industry. TDG is outperformed by 63.08% of its industry peers.
The Debt to FCF ratio of TDG is 13.23, which is on the high side as it means it would take TDG, 13.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TDG (13.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.23 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.53
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.58 indicates that TDG should not have too much problems paying its short term obligations.
TDG has a Current ratio of 1.58. This is in the lower half of the industry: TDG underperforms 63.08% of its industry peers.
TDG has a Quick Ratio of 1.29. 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 of 1.29. This is comparable to the rest of the industry: TDG outperforms 50.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.50%, which is quite impressive.
TDG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.77% yearly.
Looking at the last year, TDG shows a very strong growth in Revenue. The Revenue has grown by 20.58%.
The Revenue has been growing by 8.74% on average over the past years. This is quite good.
EPS 1Y (TTM)31.5%
EPS 3Y40.97%
EPS 5Y12.77%
EPS Q2Q%22.42%
Revenue 1Y (TTM)20.58%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%17.98%
3.2 Future
Based on estimates for the next years, TDG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.96% on average per year.
TDG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.56% yearly.
EPS Next Y12.23%
EPS Next 2Y13.44%
EPS Next 3Y13.42%
EPS Next 5Y8.96%
Revenue Next Year12.35%
Revenue Next 2Y10.34%
Revenue Next 3Y9.31%
Revenue Next 5Y9.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.56, which means the current valuation is very expensive for TDG.
Compared to the rest of the industry, the Price/Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 61.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. TDG is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 33.46, which means the current valuation is very expensive for TDG.
The rest of the industry has a similar Price/Forward Earnings ratio as TDG.
TDG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.56 | ||
| Fwd PE | 33.46 |
4.2 Price Multiples
TDG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.17 | ||
| EV/EBITDA | 22.48 |
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.
A more expensive valuation may be justified as TDG's earnings are expected to grow with 13.42% in the coming years.
PEG (NY)3.07
PEG (5Y)2.94
EPS Next 2Y13.44%
EPS Next 3Y13.42%
5. Dividend
5.1 Amount
TDG has a Yearly Dividend Yield of 5.88%, which is a nice return.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.39. TDG pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, TDG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
The dividend of TDG has a limited annual growth rate of 2.56%.
TDG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)2.56%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
137.61% 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.
DP137.61%
EPS Next 2Y13.44%
EPS Next 3Y13.42%
TRANSDIGM GROUP INC
NYSE:TDG (12/20/2024, 8:04:00 PM)
After market: 1276.15 0 (0%)1276.15
+16.03 (+1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners95.17%
Inst Owner Change-1.6%
Ins Owners0.31%
Ins Owner Change-0.06%
Market Cap71.76B
Analysts80
Price Target1531.59 (20.02%)
Short Float %1.56%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Dividend Growth(5Y)2.56%
DP137.61%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.47%
Min EPS beat(2)4.16%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)6.53%
Min EPS beat(4)4.16%
Max EPS beat(4)10.59%
EPS beat(8)8
Avg EPS beat(8)7.41%
EPS beat(12)11
Avg EPS beat(12)5.96%
EPS beat(16)14
Avg EPS beat(16)5.97%
Revenue beat(2)1
Avg Revenue beat(2)0.31%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)1.04%
Revenue beat(4)3
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)5.36%
Revenue beat(8)6
Avg Revenue beat(8)1.69%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.08%
PT rev (1m)1%
PT rev (3m)3.02%
EPS NQ rev (1m)-5.41%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)-2.36%
EPS NY rev (3m)-6.42%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.56 | ||
| Fwd PE | 33.46 | ||
| P/S | 9.04 | ||
| P/FCF | 38.17 | ||
| P/OCF | 35.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.48 |
EPS(TTM)33.98
EY2.66%
EPS(NY)38.14
Fwd EY2.99%
FCF(TTM)33.43
FCFY2.62%
OCF(TTM)36.37
OCFY2.85%
SpS141.21
BVpS-111.86
TBVpS-358.44
PEG (NY)3.07
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | N/A | ||
| ROCE | 18.94% | ||
| ROIC | 14.15% | ||
| ROICexc | 20.72% | ||
| ROICexgc | N/A | ||
| OM | 45.92% | ||
| PM (TTM) | 18.65% | ||
| GM | 59.74% | ||
| FCFM | 23.68% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.23 | ||
| Debt/EBITDA | 6.26 | ||
| Cap/Depr | 52.88% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 3.15 | ||
| Cash Conversion | 51.67% | ||
| Profit Quality | 126.94% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 1.88 |
F-Score5
WACC9.25%
ROIC/WACC1.53
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)31.5%
EPS 3Y40.97%
EPS 5Y12.77%
EPS Q2Q%22.42%
EPS Next Y12.23%
EPS Next 2Y13.44%
EPS Next 3Y13.42%
EPS Next 5Y8.96%
Revenue 1Y (TTM)20.58%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%17.98%
Revenue Next Year12.35%
Revenue Next 2Y10.34%
Revenue Next 3Y9.31%
Revenue Next 5Y9.56%
EBIT growth 1Y23.34%
EBIT growth 3Y27.44%
EBIT growth 5Y11.72%
EBIT Next Year30.37%
EBIT Next 3Y15.59%
EBIT Next 5Y13.06%
FCF growth 1Y52.1%
FCF growth 3Y32.51%
FCF growth 5Y15.52%
OCF growth 1Y48.73%
OCF growth 3Y30.84%
OCF growth 5Y15.03%