TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
NYSE:TDG - US8936411003 - Common Stock
1408.46 USD
+15.32 (+1.1%)
1408.46 USD
0 (0%)
Overall TDG gets a fundamental rating of 6 out of 10. We evaluated TDG against 68 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 decent growth rate and is not valued too expensively.
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.
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 has a better Return On Assets (7.71%) than 86.76% of its industry peers.
The Return On Invested Capital of TDG (14.57%) is better than 95.59% of its industry peers.
TDG had an Average Return On Invested Capital over the past 3 years of 12.09%. This is above the industry average of 8.59%.
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
The Profit Margin of TDG (20.41%) is better than 100.00% of its industry peers.
TDG's Profit Margin has improved in the last couple of years.
TDG's Operating Margin of 46.88% 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.
Looking at the Gross Margin, with a value of 60.12%, TDG belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TDG is still creating some value.
TDG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TDG has been increased compared to 5 years ago.
The debt/assets ratio for TDG has been reduced compared to a year ago.
2.2 Solvency
TDG has an Altman-Z score of 2.56. 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.
The Altman-Z score of TDG (2.56) is worse than 60.29% of its industry peers.
The Debt to FCF ratio of TDG is 13.12, which is on the high side as it means it would take TDG, 13.12 years of fcf income to pay off all of its debts.
TDG has a Debt to FCF ratio (13.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.52
WACC9.57%
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 better Current ratio (3.13) than 67.65% of its industry peers.
A Quick Ratio of 2.19 indicates that TDG has no problem at all paying its short term obligations.
TDG has a Quick ratio of 2.19. This is in the better half of the industry: TDG outperforms 70.59% of its industry peers.
| 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
The Earnings Per Share is expected to grow by 8.67% on average over the next years. This is quite good.
Based on estimates for the next years, TDG will show a quite strong growth in Revenue. The Revenue will grow by 9.32% on average per year.
EPS Next Y10.12%
EPS Next 2Y12.66%
EPS Next 3Y13.33%
EPS Next 5Y8.67%
Revenue Next Year11.04%
Revenue Next 2Y10.51%
Revenue Next 3Y9.51%
Revenue Next 5Y9.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 38.73, 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 64.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. TDG is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 32.66, TDG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than 60.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. TDG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.73 | ||
| Fwd PE | 32.66 |
4.2 Price Multiples
TDG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TDG is cheaper than 64.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 72.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.64 | ||
| EV/EBITDA | 23.01 |
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.
A more expensive valuation may be justified as TDG's earnings are expected to grow with 13.33% in the coming years.
PEG (NY)3.83
PEG (5Y)3.03
EPS Next 2Y12.66%
EPS Next 3Y13.33%
5. Dividend
5.1 Amount
TDG has a Yearly Dividend Yield of 5.32%, which is a nice return.
Compared to an average industry Dividend Yield of 1.18, 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 | 5.32% |
5.2 History
The dividend of TDG has a limited annual growth rate of 2.56%.
TDG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)2.56%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
251.06% of the earnings are spent on dividend by TDG. 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 2Y12.66%
EPS Next 3Y13.33%
1408.46
+15.32 (+1.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.64%
Inst Owner Change-0.69%
Ins Owners0.3%
Ins Owner Change-0.78%
Market Cap79.37B
Analysts82.96
Price Target1655.3 (17.53%)
Short Float %2.03%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
Yearly Dividend36.65
Dividend Growth(5Y)2.56%
DP251.06%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-1.53%
PT rev (3m)11.88%
EPS NQ rev (1m)-3.15%
EPS NQ rev (3m)-3.78%
EPS NY rev (1m)-1.19%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.73 | ||
| Fwd PE | 32.66 | ||
| P/S | 9.25 | ||
| P/FCF | 41.64 | ||
| P/OCF | 37.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.01 |
EPS(TTM)36.37
EY2.58%
EPS(NY)43.13
Fwd EY3.06%
FCF(TTM)33.82
FCFY2.4%
OCF(TTM)37.32
OCFY2.65%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.83
PEG (5Y)3.03
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 2.56 |
F-Score7
WACC9.57%
ROIC/WACC1.52
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 Y10.12%
EPS Next 2Y12.66%
EPS Next 3Y13.33%
EPS Next 5Y8.67%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
Revenue Next Year11.04%
Revenue Next 2Y10.51%
Revenue Next 3Y9.51%
Revenue Next 5Y9.32%
EBIT growth 1Y13.94%
EBIT growth 3Y27.44%
EBIT growth 5Y11.72%
EBIT Next Year30.7%
EBIT Next 3Y15.8%
EBIT Next 5Y12.73%
FCF growth 1Y81.35%
FCF growth 3Y32.51%
FCF growth 5Y15.52%
OCF growth 1Y77.32%
OCF growth 3Y30.84%
OCF growth 5Y15.03%