TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TDG • US8936411003

1263.26 USD
-1.53 (-0.12%)
At close: Feb 5, 2026
1269.13 USD
+5.87 (+0.46%)
After Hours: 2/5/2026, 8:04:00 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TDG. TDG was compared to 72 industry peers in the Aerospace & Defense industry. While TDG has a great profitability rating, there are some minor concerns on its financial health. TDG has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

9

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.
TDG Yearly Net Income VS EBIT VS OCF VS FCFTDG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • TDG has a Return On Assets of 8.15%. This is amongst the best in the industry. TDG outperforms 88.89% of its industry peers.
  • With an excellent Return On Invested Capital value of 15.43%, TDG belongs to the best of the industry, outperforming 93.06% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for TDG is significantly above the industry average of 8.66%.
  • The 3 year average ROIC (14.06%) for TDG is below the current ROIC(15.43%), indicating increased profibility in the last year.
Industry RankSector 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%
TDG Yearly ROA, ROE, ROICTDG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40 -60 -80

1.3 Margins

  • With an excellent Profit Margin value of 21.13%, 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.
  • TDG's Operating Margin of 47.96% is amongst the best of the industry. TDG outperforms 100.00% of its industry peers.
  • TDG's Operating Margin has improved in the last couple of years.
  • The Gross Margin of TDG (60.61%) is better than 90.28% of its industry peers.
  • TDG's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
TDG Yearly Profit, Operating, Gross MarginsTDG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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4

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.
  • 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.
  • TDG has a worse debt/assets ratio than last year.
TDG Yearly Shares OutstandingTDG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
TDG Yearly Total Debt VS Total AssetsTDG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • TDG has an Altman-Z score of 1.91. 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.
  • TDG's Altman-Z score of 1.91 is on the low side compared to the rest of the industry. TDG is outperformed by 68.06% of its industry peers.
  • 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.
  • TDG has a Debt to FCF ratio of 16.53. This is comparable to the rest of the industry: TDG outperforms 51.39% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16.53
Altman-Z 1.91
ROIC/WACC1.54
WACC10.01%
TDG Yearly LT Debt VS Equity VS FCFTDG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B

2.3 Liquidity

  • A Current Ratio of 3.21 indicates that TDG has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 3.21, TDG is in the better half of the industry, outperforming 65.28% of the companies in the same industry.
  • 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 63.89% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.21
Quick Ratio 2.25
TDG Yearly Current Assets VS Current LiabilitesTDG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • TDG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.98%, which is quite good.
  • TDG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.91% yearly.
  • Looking at the last year, TDG shows a quite strong growth in Revenue. The Revenue has grown by 11.67% in the last year.
  • The Revenue has been growing by 11.59% on average over the past years. This is quite good.
EPS 1Y (TTM)8.98%
EPS 3Y29.48%
EPS 5Y20.91%
EPS Q2Q%5.11%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%

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.
  • TDG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y5.52%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
EPS Next 5Y13.74%
Revenue Next Year13.1%
Revenue Next 2Y10.5%
Revenue Next 3Y9.45%
Revenue Next 5Y7.87%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.
TDG Yearly Revenue VS EstimatesTDG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
TDG Yearly EPS VS EstimatesTDG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 33.45, the valuation of TDG can be described as expensive.
  • Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, TDG is valued a bit more expensive.
  • A Price/Forward Earnings ratio of 27.22 indicates a quite expensive valuation of TDG.
  • TDG's Price/Forward Earnings ratio is rather cheap when compared to the industry. TDG is cheaper than 81.94% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.20, TDG is valued at the same level.
Industry RankSector Rank
PE 33.45
Fwd PE 27.22
TDG Price Earnings VS Forward Price EarningsTDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 72.22% 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 76.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 39.18
EV/EBITDA 21.21
TDG Per share dataTDG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 -100 -200 -300 -400

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 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.06
PEG (5Y)1.6
EPS Next 2Y11.46%
EPS Next 3Y12.79%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 7.12%, TDG is a good candidate for dividend investing.
  • TDG's Dividend Yield is rather good when compared to the industry average which is at 0.35. 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 1.82.
Industry RankSector Rank
Dividend Yield 7.12%

5.2 History

  • On average, the dividend of TDG grows each year by 36.77%, which is quite nice.
  • 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)36.77%
Div Incr Years2
Div Non Decr Years2
TDG Yearly Dividends per shareTDG Yearly Dividends per shareYearly Dividends per share 2019 2022 2023 2024 2025 20 40 60 80

5.3 Sustainability

  • TDG pays out 516.02% of its income as dividend. This is not a sustainable payout ratio.
  • TDG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP516.02%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
TDG Yearly Income VS Free CF VS DividendTDG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
TDG Dividend Payout.TDG Dividend Payout, showing the Payout Ratio.TDG Dividend Payout.PayoutRetained Earnings

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TRANSDIGM GROUP INC

NYSE:TDG (2/5/2026, 8:04:00 PM)

After market: 1269.13 +5.87 (+0.46%)

1263.26

-1.53 (-0.12%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners97.69%
Inst Owner Change-1.74%
Ins Owners0.28%
Ins Owner Change-2.99%
Market Cap71.15B
Revenue(TTM)9.11B
Net Income(TTM)1.87B
Analysts79.23
Price Target1638.47 (29.7%)
Short Float %2.18%
Short Ratio3.76
Dividend
Industry RankSector Rank
Dividend Yield 7.12%
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)2.18%
PT rev (3m)2.46%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)1.59%
Valuation
Industry RankSector Rank
PE 33.45
Fwd PE 27.22
P/S 8.06
P/FCF 39.18
P/OCF 34.91
P/B N/A
P/tB N/A
EV/EBITDA 21.21
EPS(TTM)37.76
EY2.99%
EPS(NY)46.41
Fwd EY3.67%
FCF(TTM)32.24
FCFY2.55%
OCF(TTM)36.19
OCFY2.86%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)6.06
PEG (5Y)1.6
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 1.91
F-Score8
WACC10.01%
ROIC/WACC1.54
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)8.98%
EPS 3Y29.48%
EPS 5Y20.91%
EPS Q2Q%5.11%
EPS Next Y5.52%
EPS Next 2Y11.46%
EPS Next 3Y12.79%
EPS Next 5Y13.74%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%
Revenue Next Year13.1%
Revenue Next 2Y10.5%
Revenue Next 3Y9.45%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year22.56%
EBIT Next 3Y13.54%
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 33.45 and the Price/Book (PB) ratio is -7.35.


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 5.52% in the next year.