TRANSDIGM GROUP INC (TDG) Fundamental Analysis & Valuation

NYSE:TDG • US8936411003

Current stock price

1167 USD
-6.27 (-0.53%)
At close:
1167 USD
0 (0%)
After Hours:

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

  • In the past year TDG was profitable.
  • TDG had a positive operating cash flow in the past year.
  • In the past 5 years TDG has always 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

  • The Return On Assets of TDG (7.61%) is better than 77.22% of its industry peers.
  • With an excellent Return On Invested Capital value of 15.28%, TDG belongs to the best of the industry, outperforming 93.67% of the companies in the same industry.
  • TDG had an Average Return On Invested Capital over the past 3 years of 14.06%. This is above the industry average of 9.20%.
  • 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 98.73% of its industry peers.
  • TDG's Profit Margin has improved in the last couple of years.
  • TDG's Operating Margin of 47.11% is amongst the best of the industry. TDG outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of TDG has grown nicely.
  • TDG has a Gross Margin of 59.90%. This is amongst the best in the industry. TDG outperforms 91.14% of its industry peers.
  • In the last couple of years the Gross Margin of TDG has grown nicely.
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TDG is creating some value.
  • TDG has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TDG has more shares outstanding
  • 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

  • Based on the Altman-Z score of 1.80, we must say that TDG is in the distress zone and has some risk of bankruptcy.
  • TDG has a Altman-Z score of 1.80. This is in the lower half of the industry: TDG underperforms 75.95% 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.
  • The Debt to FCF ratio of TDG (16.00) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Altman-Z 1.8
ROIC/WACC1.63
WACC9.38%
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 50.63% of its industry peers.
  • A Quick Ratio of 1.81 indicates that TDG should not have too much problems paying its short term obligations.
  • The Quick ratio of TDG (1.81) 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.
  • Measured over the past years, TDG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.91% on average per year.
  • The Revenue has grown by 11.67% in the past year. This is quite good.
  • 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 12.48% yearly.
  • Based on estimates for the next years, TDG will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.
EPS Next Y5.42%
EPS Next 2Y11.13%
EPS Next 3Y12.63%
EPS Next 5Y12.48%
Revenue Next Year14.07%
Revenue Next 2Y11.22%
Revenue Next 3Y10.06%
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 30.91, the valuation of TDG can be described as expensive.
  • Based on the Price/Earnings ratio, TDG is valued a bit cheaper than 68.35% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (25.60), we can say TDG is valued slightly more expensively.
  • With a Price/Forward Earnings ratio of 25.29, 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 77.22% 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 (22.84), we can say TDG is valued inline with the index average.
Industry RankSector Rank
PE 30.91
Fwd PE 25.29
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 67.09% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, TDG is valued cheaply inside the industry as 82.28% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 35.09
EV/EBITDA 19.86
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 12.63% in the coming years.
PEG (NY)5.7
PEG (5Y)1.48
EPS Next 2Y11.13%
EPS Next 3Y12.63%

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

6

5. TDG Dividend Analysis

5.1 Amount

  • TDG has a Yearly Dividend Yield of 7.71%, which is a nice return.
  • 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 1.90.
Industry RankSector Rank
Dividend Yield 7.71%

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

  • TDG pays out 292.70% of its income as dividend. This is not a sustainable payout ratio.
  • TDG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP292.7%
EPS Next 2Y11.13%
EPS Next 3Y12.63%
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 (4/2/2026, 10:55:35 PM)

After market: 1167 0 (0%)

1167

-6.27 (-0.53%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners96.31%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change1.21%
Market Cap65.90B
Revenue(TTM)9.11B
Net Income(TTM)1.81B
Analysts75.71
Price Target1618.38 (38.68%)
Short Float %1.7%
Short Ratio2.34
Dividend
Industry RankSector Rank
Dividend Yield 7.71%
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)0%
PT rev (3m)1.72%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.06%
Valuation
Industry RankSector Rank
PE 30.91
Fwd PE 25.29
P/S 7.23
P/FCF 35.09
P/OCF 31.11
P/B N/A
P/tB N/A
EV/EBITDA 19.86
EPS(TTM)37.76
EY3.24%
EPS(NY)46.14
Fwd EY3.95%
FCF(TTM)33.26
FCFY2.85%
OCF(TTM)37.51
OCFY3.21%
SpS161.31
BVpS-164.16
TBVpS-427.27
PEG (NY)5.7
PEG (5Y)1.48
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 1.8
F-Score6
WACC9.38%
ROIC/WACC1.63
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 Y5.42%
EPS Next 2Y11.13%
EPS Next 3Y12.63%
EPS Next 5Y12.48%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%
Revenue Next Year14.07%
Revenue Next 2Y11.22%
Revenue Next 3Y10.06%
Revenue Next 5Y8.32%
EBIT growth 1Y11.51%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year23.26%
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 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 5 / 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 30.91 and the Price/Book (PB) ratio is -7.11.


Can you provide the dividend sustainability for TDG stock?

The dividend rating of TRANSDIGM GROUP INC (TDG) is 5 / 10 and the dividend payout ratio is 292.7%.