TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1300 USD
-8.51 (-0.65%)
1300 USD
0 (0%)
TDG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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.
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 7.71% is amongst the best of the industry. TDG outperforms 84.51% of its industry peers.
With an excellent Return On Invested Capital value of 14.57%, TDG belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
TDG had an Average Return On Invested Capital over the past 3 years of 12.09%. This is above the industry average of 8.48%.
The last Return On Invested Capital (14.57%) for TDG is above the 3 year average (12.09%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 20.41%, TDG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 90.14% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TDG is still 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.
The debt/assets ratio for TDG has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 2.44, TDG is doing worse than 66.20% of the companies in the same industry.
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 | 2.44 |
ROIC/WACC1.58
WACC9.23%
2.3 Liquidity
A Current Ratio of 3.13 indicates that TDG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.13, TDG is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
TDG has a Quick Ratio of 2.19. This indicates that TDG is financially healthy and has no problem in meeting its short term obligations.
TDG's Quick ratio of 2.19 is fine compared to the rest of the industry. TDG outperforms 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.02% over the past year.
The Earnings Per Share has been growing by 12.77% on average over the past years. This is quite good.
Looking at the last year, TDG shows a quite strong growth in Revenue. The Revenue has grown by 12.79% in the last year.
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
Based on estimates for the next years, TDG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.78% 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 8.70% 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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
TDG is valuated quite expensively with a Price/Earnings ratio of 35.74.
Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TDG to the average of the S&P500 Index (26.51), we can say TDG is valued slightly more expensively.
The Price/Forward Earnings ratio is 32.16, which means the current valuation is very expensive for TDG.
TDG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 61.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TDG to the average of the S&P500 Index (22.53), we can say TDG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.74 | ||
| Fwd PE | 32.16 |
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.
TDG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TDG is cheaper than 74.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.43 | ||
| 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.
The excellent profitability rating of TDG may justify a higher PE ratio.
PEG (NY)3.92
PEG (5Y)2.8
EPS Next 2Y9.07%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
TDG has a Yearly Dividend Yield of 6.88%, which is a nice return.
Compared to an average industry Dividend Yield of 1.10, TDG pays a better dividend. On top of this TDG pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TDG pays a better dividend.
| 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.
TDG has decreased its dividend in the last 3 years.
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.
TDG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP251.06%
EPS Next 2Y9.07%
EPS Next 3Y11.23%
1300
-8.51 (-0.65%)
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 Cap73.25B
Revenue(TTM)8.58B
Net Income(TTM)1.75B
Analysts82.31
Price Target1586.59 (22.05%)
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 | 35.74 | ||
| Fwd PE | 32.16 | ||
| P/S | 8.54 | ||
| P/FCF | 38.43 | ||
| P/OCF | 34.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.73 |
EPS(TTM)36.37
EY2.8%
EPS(NY)40.42
Fwd EY3.11%
FCF(TTM)33.82
FCFY2.6%
OCF(TTM)37.32
OCFY2.87%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.92
PEG (5Y)2.8
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
WACC9.23%
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%.