TRANSDIGM GROUP INC (TDG)
US8936411003 - Common Stock
We assign a fundamental rating of 5 out of 10 to TDG. TDG was compared to 65 industry peers in the Aerospace & Defense industry. TDG has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TDG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TDG was profitable.
TDG had a positive operating cash flow in the past year.
TDG had positive earnings in each of the past 5 years.
TDG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.53%, TDG is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.43%, TDG belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
TDG had an Average Return On Invested Capital over the past 3 years of 9.83%. This is in line with the industry average of 8.69%.
The last Return On Invested Capital (12.43%) for TDG is above the 3 year average (9.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | N/A | ||
| ROIC | 12.43% |
ROA(3y)4.59%
ROA(5y)4.27%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.83%
ROIC(5y)9.65%
1.3 Margins
TDG's Profit Margin of 19.36% is amongst the best of the industry. TDG outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of TDG has declined.
TDG has a better Operating Margin (45.13%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of TDG has remained more or less at the same level.
TDG has a better Gross Margin (58.89%) than 93.75% 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 | 45.13% | ||
| PM (TTM) | 19.36% | ||
| GM | 58.89% |
OM growth 3Y7.8%
OM growth 5Y0.31%
PM growth 3Y23.85%
PM growth 5Y-4.14%
GM growth 3Y3.55%
GM growth 5Y0.32%
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.
Compared to 1 year ago, TDG has more shares outstanding
TDG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TDG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
TDG has a Altman-Z score (2.63) which is in line with its industry peers.
TDG has a debt to FCF ratio of 14.68. This is a negative value and a sign of low solvency as TDG would need 14.68 years to pay back of all of its debts.
TDG has a Debt to FCF ratio of 14.68. This is comparable to the rest of the industry: TDG outperforms 54.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.68 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.42
WACC8.78%
2.3 Liquidity
TDG has a Current Ratio of 4.07. This indicates that TDG is financially healthy and has no problem in meeting its short term obligations.
TDG's Current ratio of 4.07 is amongst the best of the industry. TDG outperforms 84.38% of its industry peers.
TDG has a Quick Ratio of 3.13. This indicates that TDG is financially healthy and has no problem in meeting its short term obligations.
TDG has a Quick ratio of 3.13. This is amongst the best in the industry. TDG outperforms 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.07 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.25% over the past year.
Measured over the past years, TDG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.70% on average per year.
The Revenue has grown by 23.88% in the past year. This is a very strong growth!
Measured over the past years, TDG shows a quite strong growth in Revenue. The Revenue has been growing by 11.56% on average per year.
EPS 1Y (TTM)51.25%
EPS 3Y21.35%
EPS 5Y11.7%
EPS growth Q2Q56.33%
Revenue 1Y (TTM)23.88%
Revenue growth 3Y8.87%
Revenue growth 5Y11.56%
Revenue growth Q2Q28.06%
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 8.88% on average per year.
Based on estimates for the next years, TDG will show a quite strong growth in Revenue. The Revenue will grow by 8.06% on average per year.
EPS Next Y24.67%
EPS Next 2Y20.87%
EPS Next 3Y18.54%
EPS Next 5Y8.88%
Revenue Next Year17.69%
Revenue Next 2Y13.7%
Revenue Next 3Y11.43%
Revenue Next 5Y8.06%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
A Price/Earnings ratio of 45.36 indicates a quite expensive valuation of TDG.
TDG's Price/Earnings ratio is in line with the industry average.
TDG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.91.
Based on the Price/Forward Earnings ratio of 34.15, the valuation of TDG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TDG to the average of the S&P500 Index (20.51), we can say TDG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.36 | ||
| Fwd PE | 34.15 |
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 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.12 | ||
| EV/EBITDA | 25.76 |
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 decent 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 18.54% in the coming years.
PEG (NY)1.84
PEG (5Y)3.88
EPS Next 2Y20.87%
EPS Next 3Y18.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, TDG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.29, TDG pays a better dividend. On top of this TDG pays more dividend than 98.44% of the companies listed in the same industry.
TDG's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of TDG decreases each year by -8.19%.
TDG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)-8.19%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TDG pays out 150.85% of its income as dividend. This is not a sustainable payout ratio.
DP150.85%
EPS Next 2Y20.87%
EPS Next 3Y18.54%
TRANSDIGM GROUP INC
NYSE:TDG (5/15/2024, 7:11:39 PM)
After market: 1289.2 0 (0%)1289.2
+13.43 (+1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap71.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.36 | ||
| Fwd PE | 34.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.84
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 45.13% | ||
| PM (TTM) | 19.36% | ||
| GM | 58.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.07 | ||
| Quick Ratio | 3.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)51.25%
EPS 3Y21.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.88%
Revenue growth 3Y8.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y