TRANSDIGM GROUP INC (TDG) Fundamental Analysis & Valuation

NYSE:TDG • US8936411003

Current stock price

1166.14 USD
-21.61 (-1.82%)
Last:

This TDG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TDG Profitability Analysis

1.1 Basic Checks

  • In the past year TDG was profitable.
  • 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 better Return On Assets (7.61%) than 78.75% of its industry peers.
  • With an excellent Return On Invested Capital value of 15.28%, TDG belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TDG is above the industry average of 9.30%.
  • The 3 year average ROIC (14.06%) for TDG is below the current ROIC(15.28%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.61%
ROE N/A
ROIC 15.28%
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

  • The Profit Margin of TDG (19.85%) is better than 98.75% of its industry peers.
  • TDG's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 47.11%, TDG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • TDG's Operating Margin has improved in the last couple of years.
  • TDG has a Gross Margin of 59.90%. This is amongst the best in the industry. TDG outperforms 92.50% of its industry peers.
  • TDG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 47.11%
PM (TTM) 19.85%
GM 59.9%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. TDG Health Analysis

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.
  • Compared to 5 years ago, TDG has more shares outstanding
  • Compared to 1 year ago, TDG has a worse debt to assets ratio.
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

  • An Altman-Z score of 1.82 indicates that TDG is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • TDG has a Altman-Z score of 1.82. This is amonst the worse of the industry: TDG underperforms 81.25% of its industry peers.
  • TDG has a debt to FCF ratio of 16.00. This is a negative value and a sign of low solvency as TDG would need 16.00 years to pay back of all of its debts.
  • TDG has a Debt to FCF ratio (16.00) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Altman-Z 1.82
ROIC/WACC1.52
WACC10.06%
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 2.75 indicates that TDG has no problem at all paying its short term obligations.
  • TDG has a Current ratio (2.75) which is in line with its industry peers.
  • A Quick Ratio of 1.81 indicates that TDG should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.81, TDG perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.75
Quick Ratio 1.81
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. TDG Growth Analysis

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.
  • The Revenue has grown by 11.67% in the past year. This is quite good.
  • TDG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.59% yearly.
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 12.48% on average per year.
  • Based on estimates for the next years, TDG will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.
EPS Next Y5.49%
EPS Next 2Y11.27%
EPS Next 3Y12.82%
EPS Next 5Y12.48%
Revenue Next Year14.49%
Revenue Next 2Y11.53%
Revenue Next 3Y10.25%
Revenue Next 5Y8.32%

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.
  • 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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5

4. TDG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.88, which means the current valuation is very expensive for TDG.
  • Compared to the rest of the industry, the Price/Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 68.75% of the companies listed in the same industry.
  • TDG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 25.21, which means the current valuation is very expensive for TDG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TDG indicates a somewhat cheap valuation: TDG is cheaper than 77.50% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.62. TDG is around the same levels.
Industry RankSector Rank
PE 30.88
Fwd PE 25.21
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

  • TDG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TDG is cheaper than 70.00% of the companies in the same industry.
  • TDG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TDG is cheaper than 81.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 35.06
EV/EBITDA 20.11
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 TDG does not grow enough to justify the current Price/Earnings ratio.
  • 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 12.82% in the coming years.
PEG (NY)5.63
PEG (5Y)1.48
EPS Next 2Y11.27%
EPS Next 3Y12.82%

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

6

5. TDG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 7.11%, TDG is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.35, TDG pays a better dividend. On top of this TDG pays more dividend than 100.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, TDG pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.11%

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.
  • TDG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)36.77%
Div Incr Years3
Div Non Decr Years3
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 292.70% 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.
DP292.7%
EPS Next 2Y11.27%
EPS Next 3Y12.82%
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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TDG Fundamentals: All Metrics, Ratios and Statistics

TRANSDIGM GROUP INC

NYSE:TDG (4/23/2026, 2:16:06 PM)

1166.14

-21.61 (-1.82%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-03
Earnings (Next)05-12
Inst Owners96.41%
Inst Owner Change0.08%
Ins Owners0.28%
Ins Owner Change1.21%
Market Cap65.85B
Revenue(TTM)9.11B
Net Income(TTM)1.81B
Analysts75.71
Price Target1581.82 (35.65%)
Short Float %1.88%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 7.11%
Yearly Dividend171.04
Dividend Growth(5Y)36.77%
DP292.7%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.62%
Min EPS beat(2)0.56%
Max EPS beat(2)6.68%
EPS beat(4)3
Avg EPS beat(4)0.81%
Min EPS beat(4)-4.8%
Max EPS beat(4)6.68%
EPS beat(8)7
Avg EPS beat(8)2.51%
EPS beat(12)11
Avg EPS beat(12)4.77%
EPS beat(16)15
Avg EPS beat(16)5.09%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.22%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)0.58%
Revenue beat(8)4
Avg Revenue beat(8)-0.64%
Revenue beat(12)7
Avg Revenue beat(12)0.5%
Revenue beat(16)9
Avg Revenue beat(16)0.31%
PT rev (1m)-2.26%
PT rev (3m)-2.69%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.37%
Valuation
Industry RankSector Rank
PE 30.88
Fwd PE 25.21
P/S 7.23
P/FCF 35.06
P/OCF 31.09
P/B N/A
P/tB N/A
EV/EBITDA 20.11
EPS(TTM)37.76
EY3.24%
EPS(NY)46.26
Fwd EY3.97%
FCF(TTM)33.26
FCFY2.85%
OCF(TTM)37.51
OCFY3.22%
SpS161.31
BVpS-164.16
TBVpS-427.27
PEG (NY)5.63
PEG (5Y)1.48
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 7.61%
ROE N/A
ROCE 20.22%
ROIC 15.28%
ROICexc 17.27%
ROICexgc 73.55%
OM 47.11%
PM (TTM) 19.85%
GM 59.9%
FCFM 20.62%
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-Score6
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 16
Debt/EBITDA 6.41
Cap/Depr 63.66%
Cap/Sales 2.63%
Interest Coverage 2.85
Cash Conversion 45.37%
Profit Quality 103.87%
Current Ratio 2.75
Quick Ratio 1.81
Altman-Z 1.82
F-Score6
WACC10.06%
ROIC/WACC1.52
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 Y5.49%
EPS Next 2Y11.27%
EPS Next 3Y12.82%
EPS Next 5Y12.48%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y17.61%
Revenue growth 5Y11.59%
Sales Q2Q%13.91%
Revenue Next Year14.49%
Revenue Next 2Y11.53%
Revenue Next 3Y10.25%
Revenue Next 5Y8.32%
EBIT growth 1Y11.51%
EBIT growth 3Y23.74%
EBIT growth 5Y18.28%
EBIT Next Year23.28%
EBIT Next 3Y13.79%
EBIT Next 5Y10.75%
FCF growth 1Y26.04%
FCF growth 3Y29.87%
FCF growth 5Y10.39%
OCF growth 1Y29.62%
OCF growth 3Y29.06%
OCF growth 5Y10.94%

TRANSDIGM GROUP INC / TDG Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TRANSDIGM GROUP INC?

ChartMill assigns a fundamental rating of 6 / 10 to TDG.


What is the valuation status of TRANSDIGM GROUP INC (TDG) stock?

ChartMill assigns a valuation rating of 5 / 10 to TRANSDIGM GROUP INC (TDG). This can be considered as Fairly Valued.


How profitable is TRANSDIGM GROUP INC (TDG) stock?

TRANSDIGM GROUP INC (TDG) has a profitability rating of 8 / 10.


What are the PE and PB ratios of TRANSDIGM GROUP INC (TDG) stock?

The Price/Earnings (PE) ratio for TRANSDIGM GROUP INC (TDG) is 30.88 and the Price/Book (PB) ratio is -7.1.


Can you provide the dividend sustainability for TDG stock?

The dividend rating of TRANSDIGM GROUP INC (TDG) is 6 / 10 and the dividend payout ratio is 292.7%.