TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1271.45 USD
-21.85 (-1.69%)
1271.45 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. While TDG belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years TDG has been profitable.
Each year in the past 5 years TDG had a positive operating cash flow.
1.2 Ratios
TDG has a better Return On Assets (7.71%) than 85.29% of its industry peers.
The Return On Invested Capital of TDG (14.57%) is better than 94.12% 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 8.21%.
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
TDG's Profit Margin of 20.41% is amongst the best of the industry. TDG outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TDG has grown nicely.
TDG has a Operating Margin of 46.88%. This is amongst the best in the industry. TDG outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of TDG has grown nicely.
The Gross Margin of TDG (60.12%) is better than 89.71% 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
TDG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TDG has been increased compared to 1 year ago.
The number of shares outstanding for TDG has been increased compared to 5 years ago.
Compared to 1 year ago, TDG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.42 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 2.42, TDG is doing worse than 63.24% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.57
WACC9.28%
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 Current ratio of 3.13. This is in the better half of the industry: TDG outperforms 66.18% of its industry peers.
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 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
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.
TDG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.79%.
TDG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.74% yearly.
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
TDG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.67% yearly.
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.
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 34.96 indicates a quite expensive valuation of TDG.
Based on the Price/Earnings ratio, TDG is valued a bit cheaper than the industry average as 67.65% 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 29.48, TDG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TDG to the average of the S&P500 Index (22.73), we can say TDG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 29.48 |
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 63.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.59 | ||
| EV/EBITDA | 21.53 |
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 13.33% in the coming years.
PEG (NY)3.45
PEG (5Y)2.74
EPS Next 2Y12.66%
EPS Next 3Y13.33%
5. Dividend
5.1 Amount
TDG has a Yearly Dividend Yield of 12.98%, which is a nice return.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.52. TDG pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, TDG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.98% |
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.
The dividend of TDG decreased in the last 3 years.
Dividend Growth(5Y)2.56%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TDG pays out 251.06% of its income as dividend. 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 2Y12.66%
EPS Next 3Y13.33%
1271.45
-21.85 (-1.69%)
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 Cap71.65B
Analysts82.31
Price Target1643.23 (29.24%)
Short Float %2.02%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.98% |
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)-1.8%
PT rev (3m)5.89%
EPS NQ rev (1m)-3.48%
EPS NQ rev (3m)-4.11%
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)-0.85%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 29.48 | ||
| P/S | 8.35 | ||
| P/FCF | 37.59 | ||
| P/OCF | 34.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.53 |
EPS(TTM)36.37
EY2.86%
EPS(NY)43.13
Fwd EY3.39%
FCF(TTM)33.82
FCFY2.66%
OCF(TTM)37.32
OCFY2.94%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.45
PEG (5Y)2.74
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 | 2.42 |
F-Score7
WACC9.28%
ROIC/WACC1.57
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%