TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1288.83 USD
+5.02 (+0.39%)
1288.83 USD
0 (0%)
Taking everything into account, TDG scores 6 out of 10 in our fundamental rating. TDG was compared to 69 industry peers in the Aerospace & Defense industry. TDG scores excellent on profitability, 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
In the past year TDG was profitable.
In the past year TDG had a positive cash flow from operations.
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's Return On Assets of 7.71% is amongst the best of the industry. TDG outperforms 85.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.57%, TDG belongs to the top of the industry, outperforming 94.20% 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 8.29%.
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
TDG's Profit Margin of 20.41% is amongst the best of the industry. TDG outperforms 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.
TDG has a Gross Margin of 60.12%. This is amongst the best in the industry. TDG outperforms 89.86% of its industry peers.
TDG's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TDG is creating some value.
The number of shares outstanding for TDG has been increased compared to 1 year ago.
Compared to 5 years ago, TDG has more shares outstanding
TDG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.41 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TDG (2.41) is worse than 62.32% 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.
The Debt to FCF ratio of TDG (13.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.55
WACC9.41%
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.
With a decent Current ratio value of 3.13, TDG is doing good in the industry, outperforming 66.67% 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 has a better Quick ratio (2.19) than 71.01% 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.
Looking at the last year, TDG shows a quite strong growth in Revenue. The Revenue has grown by 12.79% in the last year.
The Revenue has been growing by 8.74% on average over the past years. This is quite good.
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 8.67% on average per year.
TDG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.32% yearly.
EPS Next Y9.88%
EPS Next 2Y11.18%
EPS Next 3Y12.36%
EPS Next 5Y8.67%
Revenue Next Year11.02%
Revenue Next 2Y10.5%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.44 indicates a quite expensive valuation of TDG.
Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
TDG is valuated rather expensively when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.69 indicates a quite expensive valuation of TDG.
TDG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 65.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TDG to the average of the S&P500 Index (23.32), we can say TDG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 30.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.1 | ||
| EV/EBITDA | 21.41 |
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.
A more expensive valuation may be justified as TDG's earnings are expected to grow with 12.36% in the coming years.
PEG (NY)3.59
PEG (5Y)2.77
EPS Next 2Y11.18%
EPS Next 3Y12.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.98%, TDG is a good candidate for dividend investing.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.44. TDG pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TDG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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.
The dividend of TDG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP251.06%
EPS Next 2Y11.18%
EPS Next 3Y12.36%
1288.83
+5.02 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change-0.7%
Ins Owners0.28%
Ins Owner Change-3.76%
Market Cap72.63B
Analysts82.31
Price Target1634.89 (26.85%)
Short Float %1.9%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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)-0.73%
PT rev (3m)4.3%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 30.69 | ||
| P/S | 8.47 | ||
| P/FCF | 38.1 | ||
| P/OCF | 34.53 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.41 |
EPS(TTM)36.37
EY2.82%
EPS(NY)42
Fwd EY3.26%
FCF(TTM)33.82
FCFY2.62%
OCF(TTM)37.32
OCFY2.9%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.59
PEG (5Y)2.77
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 | 2.41 |
F-Score7
WACC9.41%
ROIC/WACC1.55
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 Y9.88%
EPS Next 2Y11.18%
EPS Next 3Y12.36%
EPS Next 5Y8.67%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y18.28%
Revenue growth 5Y8.74%
Sales Q2Q%9.34%
Revenue Next Year11.02%
Revenue Next 2Y10.5%
Revenue Next 3Y9.51%
Revenue Next 5Y9.32%
EBIT growth 1Y13.94%
EBIT growth 3Y27.44%
EBIT growth 5Y11.72%
EBIT Next Year30.42%
EBIT Next 3Y15.68%
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%