TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDG - US8936411003 - Common Stock
1359.39 USD
+22.06 (+1.65%)
Taking everything into account, TDG scores 6 out of 10 in our fundamental rating. TDG was compared to 71 industry peers in the Aerospace & Defense industry. TDG has an excellent profitability rating, but there are some minor concerns on its financial health. TDG is not valued too expensively and it also shows a decent growth rate.
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.
TDG had positive earnings in each of the past 5 years.
In the past 5 years TDG always reported a positive cash flow from operatings.
1.2 Ratios
TDG's Return On Assets of 8.15% is amongst the best of the industry. TDG outperforms 87.32% of its industry peers.
With an excellent Return On Invested Capital value of 15.43%, TDG belongs to the best of the industry, outperforming 94.37% 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 8.57%.
The 3 year average ROIC (14.06%) for TDG is below the current ROIC(15.43%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
TDG has a better Profit Margin (21.13%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of TDG has grown nicely.
TDG has a Operating Margin of 47.96%. This is amongst the best in the industry. TDG outperforms 100.00% of its industry peers.
TDG's Operating Margin has improved in the last couple of years.
The Gross Margin of TDG (60.61%) is better than 91.55% of its industry peers.
TDG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
The debt/assets ratio for TDG is higher compared to a year ago.
2.2 Solvency
TDG has an Altman-Z score of 1.99. 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.
Looking at the Altman-Z score, with a value of 1.99, TDG is doing worse than 71.83% 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.
TDG has a Debt to FCF ratio (16.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.64
WACC9.42%
2.3 Liquidity
A Current Ratio of 3.21 indicates that TDG has no problem at all paying its short term obligations.
TDG has a better Current ratio (3.21) than 64.79% of its industry peers.
A Quick Ratio of 2.25 indicates that TDG has no problem at all paying its short term obligations.
TDG has a better Quick ratio (2.25) than 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.95% 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.
TDG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.21%.
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)9.95%
EPS 3Y29.48%
EPS 5Y20.91%
EPS Q2Q%10.07%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
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 13.74% on average per year.
Based on estimates for the next years, TDG will show a small growth in Revenue. The Revenue will grow by 7.87% on average per year.
EPS Next Y8.2%
EPS Next 2Y11.88%
EPS Next 3Y12.57%
EPS Next 5Y13.74%
Revenue Next Year11.41%
Revenue Next 2Y9.5%
Revenue Next 3Y9.22%
Revenue Next 5Y7.87%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.39, 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 69.01% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.37, TDG is valued a bit more expensive.
The Price/Forward Earnings ratio is 33.63, which means the current valuation is very expensive for TDG.
Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than the industry average as 64.79% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.20. TDG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.39 | ||
| Fwd PE | 33.63 |
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 67.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.16 | ||
| EV/EBITDA | 22.12 |
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 12.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.44
PEG (5Y)1.74
EPS Next 2Y11.88%
EPS Next 3Y12.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.62%, TDG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.14, TDG pays a better dividend. On top of this TDG pays more dividend than 100.00% of the companies listed in the same industry.
TDG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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.
The dividend of TDG decreased in the last 3 years.
Dividend Growth(5Y)36.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TDG pays out 516.02% of its income as dividend. 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 2Y11.88%
EPS Next 3Y12.57%
NYSE:TDG (12/4/2025, 12:33:00 PM)
1359.39
+22.06 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change0.29%
Ins Owners0.28%
Ins Owner Change-3.28%
Market Cap76.56B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts82.31
Price Target1571.4 (15.6%)
Short Float %2.14%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP516.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-3.88%
PT rev (3m)-5.07%
EPS NQ rev (1m)-6.37%
EPS NQ rev (3m)-11.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.27%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.39 | ||
| Fwd PE | 33.63 | ||
| P/S | 8.67 | ||
| P/FCF | 42.16 | ||
| P/OCF | 37.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.12 |
EPS(TTM)37.36
EY2.75%
EPS(NY)40.42
Fwd EY2.97%
FCF(TTM)32.24
FCFY2.37%
OCF(TTM)36.19
OCFY2.66%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)4.44
PEG (5Y)1.74
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.99 |
F-Score8
WACC9.42%
ROIC/WACC1.64
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)9.95%
EPS 3Y29.48%
EPS 5Y20.91%
EPS Q2Q%10.07%
EPS Next Y8.2%
EPS Next 2Y11.88%
EPS Next 3Y12.57%
EPS Next 5Y13.74%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
Revenue Next Year11.41%
Revenue Next 2Y9.5%
Revenue Next 3Y9.22%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year22.18%
EBIT Next 3Y13.32%
EBIT Next 5Y10.96%
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
What is the fundamental rating for TDG stock?
ChartMill assigns a fundamental rating of 6 / 10 to TDG.
What is the valuation status for TDG stock?
ChartMill assigns a valuation rating of 4 / 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.
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 8.2% in the next year.
Is the dividend of TRANSDIGM GROUP INC sustainable?
The dividend rating of TRANSDIGM GROUP INC (TDG) is 5 / 10 and the dividend payout ratio is 516.02%.