TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDG - US8936411003 - Common Stock
1276.83 USD
+14.05 (+1.11%)
1276.83 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TDG. TDG was compared to 71 industry peers in the Aerospace & Defense industry. While TDG has a great profitability rating, there are some minor concerns on its financial health. TDG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TDG had positive earnings in the past year.
TDG had a positive operating cash flow in the past year.
In the past 5 years TDG has always been profitable.
In the past 5 years TDG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.15%, TDG belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
The Return On Invested Capital of TDG (15.43%) is better than 94.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TDG is significantly above the industry average of 8.60%.
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 Profit Margin of 21.13%. This is amongst the best in the industry. TDG outperforms 100.00% of its industry peers.
TDG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 47.96%, TDG belongs to the best 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.
Looking at the Gross Margin, with a value of 60.61%, TDG belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
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
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.
TDG has a worse debt/assets ratio than last year.
2.2 Solvency
TDG has an Altman-Z score of 1.92. 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 1.92, TDG is doing worse than 74.65% of the companies in the same industry.
The Debt to FCF ratio of TDG is 16.53, which is on the high side as it means it would take TDG, 16.53 years of fcf income to pay off all of its debts.
TDG's Debt to FCF ratio of 16.53 is in line compared to the rest of the industry. TDG outperforms 49.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.59
WACC9.7%
2.3 Liquidity
A Current Ratio of 3.21 indicates that TDG has no problem at all paying its short term obligations.
TDG's Current ratio of 3.21 is fine compared to the rest of the industry. TDG outperforms 61.97% of its industry peers.
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.
TDG's Quick ratio of 2.25 is fine compared to the rest of the industry. TDG outperforms 64.79% 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.
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 11.21% 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)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
The Earnings Per Share is expected to grow by 13.74% on average over the next years. This is quite good.
TDG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y4.64%
EPS Next 2Y11.52%
EPS Next 3Y12.92%
EPS Next 5Y13.74%
Revenue Next Year12.85%
Revenue Next 2Y10.4%
Revenue Next 3Y9.34%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.18, which means the current valuation is very expensive for TDG.
Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
TDG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.38.
The Price/Forward Earnings ratio is 32.66, which means the current valuation is very expensive for TDG.
Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than 63.38% of the companies in the same industry.
TDG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.18 | ||
| Fwd PE | 32.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than the industry average as 64.79% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 70.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.6 | ||
| EV/EBITDA | 21.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 12.92% in the coming years.
PEG (NY)7.36
PEG (5Y)1.63
EPS Next 2Y11.52%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.05%, TDG is a good candidate for dividend investing.
TDG's Dividend Yield is rather good when compared to the industry average which is at 0.41. 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)36.77%
Div Incr Years2
Div Non Decr Years2
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 2Y11.52%
EPS Next 3Y12.92%
1276.83
+14.05 (+1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.58%
Inst Owner Change0.3%
Ins Owners0.28%
Ins Owner Change-2.99%
Market Cap71.91B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts80
Price Target1585.5 (24.17%)
Short Float %2.33%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
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)0.9%
PT rev (3m)-3.51%
EPS NQ rev (1m)-1.5%
EPS NQ rev (3m)-11.01%
EPS NY rev (1m)-3.28%
EPS NY rev (3m)-9.35%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.18 | ||
| Fwd PE | 32.66 | ||
| P/S | 8.14 | ||
| P/FCF | 39.6 | ||
| P/OCF | 35.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.38 |
EPS(TTM)37.36
EY2.93%
EPS(NY)39.09
Fwd EY3.06%
FCF(TTM)32.24
FCFY2.53%
OCF(TTM)36.19
OCFY2.83%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)7.36
PEG (5Y)1.63
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 | 1.92 |
F-Score8
WACC9.7%
ROIC/WACC1.59
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 Y4.64%
EPS Next 2Y11.52%
EPS Next 3Y12.92%
EPS Next 5Y13.74%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
Revenue Next Year12.85%
Revenue Next 2Y10.4%
Revenue Next 3Y9.34%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year21.93%
EBIT Next 3Y13.17%
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
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 4.64% 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%.