TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDG - US8936411003 - Common Stock
1381.98 USD
-4.14 (-0.3%)
1381.98 USD
0 (0%)
Overall TDG gets a fundamental rating of 6 out of 10. We evaluated TDG 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 is not valued too expensively and it also shows a decent 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.
- Each year in the past 5 years TDG has been profitable.
- TDG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TDG has a better Return On Assets (8.15%) than 87.32% of its industry peers.
- TDG has a better Return On Invested Capital (15.43%) than 94.37% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TDG is significantly above the industry average of 8.54%.
- The last Return On Invested Capital (15.43%) for TDG is above the 3 year average (14.06%), which is a sign of increasing profitability.
| 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
- The Profit Margin of TDG (21.13%) is better than 100.00% of its industry peers.
- TDG's Profit Margin has improved in the last couple of years.
- The Operating Margin of TDG (47.96%) is better than 100.00% of its industry peers.
- TDG's Operating Margin has improved in the last couple of years.
- TDG's Gross Margin of 60.61% is amongst the best of the industry. TDG outperforms 90.14% of its industry peers.
- 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
- 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.
- The debt/assets ratio for TDG is higher compared to a year ago.
2.2 Solvency
- TDG has an Altman-Z score of 2.03. 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.
- With a Altman-Z score value of 2.03, TDG is not doing good in the industry: 73.24% of the companies in the same industry are doing better.
- 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.
- Looking at the Debt to FCF ratio, with a value of 16.53, TDG is in line with its industry, outperforming 49.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.68
WACC9.19%
2.3 Liquidity
- A Current Ratio of 3.21 indicates that TDG has no problem at all paying its short term obligations.
- TDG has a Current ratio of 3.21. This is in the better half of the industry: TDG outperforms 66.20% of its industry peers.
- A Quick Ratio of 2.25 indicates that TDG has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 2.25, TDG is doing good in the industry, outperforming 64.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
- TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.95%, which is quite good.
- Measured over the past years, TDG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.91% on average per year.
- TDG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.21%.
- The Revenue has been growing by 11.59% on average over the past years. This is quite good.
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
- Based on estimates for the next years, TDG will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.74% on average per year.
- The Revenue is expected to grow by 7.87% on average over the next years.
EPS Next Y4.56%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
EPS Next 5Y13.74%
Revenue Next Year12.88%
Revenue Next 2Y10.43%
Revenue Next 3Y9.35%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 36.99, 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 74.65% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.30. TDG is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 35.38, TDG can be considered very expensive at the moment.
- 64.79% of the companies in the same industry are more expensive than TDG, based on the Price/Forward Earnings ratio.
- TDG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.99 | ||
| Fwd PE | 35.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than 66.20% 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 76.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.86 | ||
| EV/EBITDA | 22.67 |
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.
- TDG's earnings are expected to grow with 12.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.11
PEG (5Y)1.77
EPS Next 2Y11.63%
EPS Next 3Y12.94%
5. Dividend
5.1 Amount
- TDG has a Yearly Dividend Yield of 6.47%, which is a nice return.
- TDG's Dividend Yield is rather good when compared to the industry average which is at 0.37. TDG pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, TDG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
5.2 History
- The dividend of TDG is nicely growing with an annual growth rate of 36.77%!
- 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)36.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- TDG pays out 516.02% of its income as dividend. 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 2Y11.63%
EPS Next 3Y12.94%
1381.98
-4.14 (-0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-12 2025-11-12/bmo
Earnings (Next)02-02 2026-02-02/bmo
Inst Owners97.69%
Inst Owner Change0.07%
Ins Owners0.28%
Ins Owner Change-2.99%
Market Cap77.83B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts79.23
Price Target1590.96 (15.12%)
Short Float %2.17%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP516.02%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.34%
PT rev (3m)-2.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.45%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.99 | ||
| Fwd PE | 35.38 | ||
| P/S | 8.81 | ||
| P/FCF | 42.86 | ||
| P/OCF | 38.19 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.67 |
EPS(TTM)37.36
EY2.7%
EPS(NY)39.06
Fwd EY2.83%
FCF(TTM)32.24
FCFY2.33%
OCF(TTM)36.19
OCFY2.62%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)8.11
PEG (5Y)1.77
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 | 2.03 |
F-Score8
WACC9.19%
ROIC/WACC1.68
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 Y4.56%
EPS Next 2Y11.63%
EPS Next 3Y12.94%
EPS Next 5Y13.74%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
Revenue Next Year12.88%
Revenue Next 2Y10.43%
Revenue Next 3Y9.35%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year21.95%
EBIT Next 3Y13.19%
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
Can you provide the ChartMill fundamental rating for TRANSDIGM GROUP INC?
ChartMill assigns a fundamental rating of 6 / 10 to TDG.
Can you provide the valuation status for TRANSDIGM GROUP INC?
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.
Can you provide the PE and PB ratios for TDG stock?
The Price/Earnings (PE) ratio for TRANSDIGM GROUP INC (TDG) is 36.99 and the Price/Book (PB) ratio is -8.04.
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 4.56% in the next year.