TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1308.51 USD
+2.37 (+0.18%)
1308.51 USD
0 (0%)
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 has a correct valuation and a medium growth rate.
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.
In the past 5 years TDG has always been profitable.
Each year in the past 5 years TDG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.71%, TDG belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.57%, TDG belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TDG is above the industry average of 8.45%.
The 3 year average ROIC (12.09%) for TDG is below the current ROIC(14.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | N/A | ||
| ROIC | 14.57% |
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 Profit Margin of 20.41%. 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 46.88%, 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.
TDG has a better Gross Margin (60.12%) than 90.00% of its industry peers.
In the last couple of years the Gross Margin of TDG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.88% | ||
| PM (TTM) | 20.41% | ||
| GM | 60.12% |
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.
Compared to 1 year ago, TDG has more shares outstanding
The number of shares outstanding for TDG has been increased compared to 5 years ago.
Compared to 1 year ago, TDG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.44 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TDG (2.44) is worse than 65.71% of its industry peers.
TDG has a debt to FCF ratio of 13.12. This is a negative value and a sign of low solvency as TDG would need 13.12 years to pay back of all of its debts.
With a Debt to FCF ratio value of 13.12, TDG perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.58
WACC9.24%
2.3 Liquidity
TDG has a Current Ratio of 3.13. This indicates that TDG is financially healthy and has no problem in meeting its short term obligations.
TDG has a Current ratio of 3.13. This is in the better half of the industry: TDG outperforms 65.71% of its industry peers.
A Quick Ratio of 2.19 indicates that TDG has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.19, TDG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.02%, which is quite good.
TDG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.77% yearly.
TDG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.79%.
Measured over the past years, TDG shows a quite strong growth in Revenue. The Revenue has been growing by 8.74% on average per year.
EPS 1Y (TTM)13.02%
EPS 3Y40.97%
EPS 5Y12.77%
EPS Q2Q%6.67%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
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 10.78% yearly.
Based on estimates for the next years, TDG will show a quite strong growth in Revenue. The Revenue will grow by 8.70% on average per year.
EPS Next Y9.12%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
EPS Next 5Y10.78%
Revenue Next Year10.97%
Revenue Next 2Y11.19%
Revenue Next 3Y9.99%
Revenue Next 5Y8.7%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 35.98, TDG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
TDG is valuated rather expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.37, the valuation of TDG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 62.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. TDG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.98 | ||
| Fwd PE | 32.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than 68.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than 75.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.69 | ||
| EV/EBITDA | 21.73 |
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.
PEG (NY)3.95
PEG (5Y)2.82
EPS Next 2Y9.07%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.88%, TDG is a good candidate for dividend investing.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.10. 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
5.2 History
The dividend of TDG has a limited annual growth rate of 2.56%.
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)2.56%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TDG pays out 251.06% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TDG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP251.06%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
1308.51
+2.37 (+0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change-0.32%
Ins Owners0.28%
Ins Owner Change-3.76%
Market Cap73.73B
Revenue(TTM)8.58B
Net Income(TTM)1.75B
Analysts82.31
Price Target1586.59 (21.25%)
Short Float %1.95%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
Yearly Dividend36.65
Dividend Growth(5Y)2.56%
DP251.06%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.01%
Min EPS beat(2)-4.8%
Max EPS beat(2)0.78%
EPS beat(4)3
Avg EPS beat(4)0.52%
Min EPS beat(4)-4.8%
Max EPS beat(4)4.79%
EPS beat(8)7
Avg EPS beat(8)3.61%
EPS beat(12)11
Avg EPS beat(12)5.11%
EPS beat(16)14
Avg EPS beat(16)5.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-3.49%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)-0.41%
Revenue beat(8)3
Avg Revenue beat(8)-0.08%
Revenue beat(12)6
Avg Revenue beat(12)0.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.24%
PT rev (1m)-3.45%
PT rev (3m)-5.62%
EPS NQ rev (1m)-2.19%
EPS NQ rev (3m)-6.78%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-2.09%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.98 | ||
| Fwd PE | 32.37 | ||
| P/S | 8.59 | ||
| P/FCF | 38.69 | ||
| P/OCF | 35.06 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.73 |
EPS(TTM)36.37
EY2.78%
EPS(NY)40.42
Fwd EY3.09%
FCF(TTM)33.82
FCFY2.58%
OCF(TTM)37.32
OCFY2.85%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.95
PEG (5Y)2.82
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | N/A | ||
| ROCE | 19.63% | ||
| ROIC | 14.57% | ||
| ROICexc | 16.78% | ||
| ROICexgc | 71% | ||
| OM | 46.88% | ||
| PM (TTM) | 20.41% | ||
| GM | 60.12% | ||
| FCFM | 22.22% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Debt/EBITDA | 5.68 | ||
| Cap/Depr | 54.12% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 47.95% | ||
| Profit Quality | 108.85% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 2.44 |
F-Score7
WACC9.24%
ROIC/WACC1.58
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)13.02%
EPS 3Y40.97%
EPS 5Y12.77%
EPS Q2Q%6.67%
EPS Next Y9.12%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
EPS Next 5Y10.78%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
Revenue Next Year10.97%
Revenue Next 2Y11.19%
Revenue Next 3Y9.99%
Revenue Next 5Y8.7%
EBIT growth 1Y13.94%
EBIT growth 3Y27.44%
EBIT growth 5Y11.72%
EBIT Next Year30.42%
EBIT Next 3Y15.68%
EBIT Next 5Y12.49%
FCF growth 1Y81.35%
FCF growth 3Y32.51%
FCF growth 5Y15.52%
OCF growth 1Y77.32%
OCF growth 3Y30.84%
OCF growth 5Y15.03%
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 8 / 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 9.12% in the next year.
Is the dividend of TRANSDIGM GROUP INC sustainable?
The dividend rating of TRANSDIGM GROUP INC (TDG) is 6 / 10 and the dividend payout ratio is 251.06%.