TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDG - US8936411003 - Common Stock
1354.86 USD
-5.31 (-0.39%)
1361 USD
+6.14 (+0.45%)
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 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
Looking at the Return On Assets, with a value of 8.15%, TDG belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
TDG's Return On Invested Capital of 15.43% is amongst the best of the industry. TDG outperforms 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 8.53%.
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
TDG's Profit Margin of 21.13% 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 has a Operating Margin of 47.96%. 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.
TDG has a Gross Margin of 60.61%. This is amongst the best in the industry. TDG outperforms 91.55% 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
TDG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TDG has more shares outstanding
TDG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TDG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.01 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
TDG has a worse Altman-Z score (2.01) than 71.83% of its industry peers.
TDG has a debt to FCF ratio of 16.53. This is a negative value and a sign of low solvency as TDG would need 16.53 years to pay back of all of its debts.
With a Debt to FCF ratio value of 16.53, TDG perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.53 | ||
| Altman-Z | 2.01 |
ROIC/WACC1.65
WACC9.37%
2.3 Liquidity
TDG has a Current Ratio of 3.21. This indicates that TDG is financially healthy and has no problem in meeting 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 64.79% 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.
The Quick ratio of TDG (2.25) is better than 70.42% of its industry peers.
| 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.
TDG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.91% yearly.
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 Y8.2%
EPS Next 2Y11.88%
EPS Next 3Y12.57%
EPS Next 5Y13.74%
Revenue Next Year11.41%
Revenue Next 2Y9.5%
Revenue Next 3Y9.22%
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.
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
TDG is valuated quite expensively with a Price/Earnings ratio of 36.26.
TDG's Price/Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 69.01% of the companies in the same industry.
TDG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.11.
With a Price/Forward Earnings ratio of 33.52, TDG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TDG is valued a bit cheaper than 63.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, TDG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.26 | ||
| Fwd PE | 33.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDG is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
TDG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TDG is cheaper than 67.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.02 | ||
| EV/EBITDA | 22.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TDG does not grow enough to justify the current Price/Earnings ratio.
TDG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TDG's earnings are expected to grow with 12.57% in the coming years.
PEG (NY)4.43
PEG (5Y)1.73
EPS Next 2Y11.88%
EPS Next 3Y12.57%
5. Dividend
5.1 Amount
TDG has a Yearly Dividend Yield of 6.62%, which is a nice return.
TDG's Dividend Yield is rather good when compared to the industry average which is at 1.14. 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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
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 2Y11.88%
EPS Next 3Y12.57%
1354.86
-5.31 (-0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change0.29%
Ins Owners0.28%
Ins Owner Change-3.28%
Market Cap76.31B
Revenue(TTM)8.83B
Net Income(TTM)1.87B
Analysts82.31
Price Target1571.4 (15.98%)
Short Float %2.06%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP516.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-3.88%
PT rev (3m)-5.07%
EPS NQ rev (1m)-6.37%
EPS NQ rev (3m)-11.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.27%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.26 | ||
| Fwd PE | 33.52 | ||
| P/S | 8.64 | ||
| P/FCF | 42.02 | ||
| P/OCF | 37.44 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.4 |
EPS(TTM)37.36
EY2.76%
EPS(NY)40.42
Fwd EY2.98%
FCF(TTM)32.24
FCFY2.38%
OCF(TTM)36.19
OCFY2.67%
SpS156.78
BVpS-171.98
TBVpS-421.73
PEG (NY)4.43
PEG (5Y)1.73
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 | 2.01 |
F-Score8
WACC9.37%
ROIC/WACC1.65
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 Y8.2%
EPS Next 2Y11.88%
EPS Next 3Y12.57%
EPS Next 5Y13.74%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%11.53%
Revenue Next Year11.41%
Revenue Next 2Y9.5%
Revenue Next 3Y9.22%
Revenue Next 5Y7.87%
EBIT growth 1Y16.15%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year22.18%
EBIT Next 3Y13.32%
EBIT Next 5Y10.96%
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
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 9 / 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 8.2% in the next year.
Is the dividend of TRANSDIGM GROUP INC sustainable?
The dividend rating of TRANSDIGM GROUP INC (TDG) is 5 / 10 and the dividend payout ratio is 516.02%.