TRANSDIGM GROUP INC (TDG) Stock Fundamental Analysis
USA - NYSE:TDG - US8936411003 - Common Stock
1282.46 USD
-3.66 (-0.28%)
1282.46 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. While TDG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TDG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TDG had positive earnings in the past year.
TDG had a positive operating cash flow in the past year.
In the past 5 years TDG has always been profitable.
In the past 5 years TDG always reported a positive cash flow from operatings.
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.
The Return On Invested Capital of TDG (14.57%) is better than 94.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TDG 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 has a better Profit Margin (20.41%) than 100.00% of its industry peers.
TDG's Profit Margin has improved in the last couple of years.
TDG has a better Operating Margin (46.88%) than 100.00% of its industry peers.
TDG's Operating Margin has improved in the last couple of years.
The Gross Margin of TDG (60.12%) is better than 89.86% 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
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.
TDG has more shares outstanding than it did 5 years ago.
TDG has a better debt/assets ratio than last year.
2.2 Solvency
TDG has an Altman-Z score of 2.42. 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 has a worse Altman-Z score (2.42) than 63.77% of its industry peers.
TDG has a debt to FCF ratio of 13.12. This is a negative value and a sign of low solvency as TDG would need 13.12 years to pay back of 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/WACC1.55
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.
TDG has a better Current ratio (3.13) than 66.67% of its industry peers.
A Quick Ratio of 2.19 indicates that TDG has no problem at all paying its short term obligations.
TDG has a Quick ratio of 2.19. This is in the better half of the industry: TDG outperforms 71.01% 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.
Measured over the past years, TDG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.77% on average per year.
The Revenue has grown by 12.79% in the past year. This is quite good.
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
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 Year11.02%
Revenue Next 2Y10.5%
Revenue Next 3Y9.51%
Revenue Next 5Y9.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.26 indicates a quite expensive valuation of TDG.
TDG's Price/Earnings ratio is a bit cheaper when compared to the industry. TDG is cheaper than 68.12% 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 27.41.
Based on the Price/Forward Earnings ratio of 29.74, the valuation of TDG can be described as expensive.
65.22% of the companies in the same industry are more expensive than TDG, based on the Price/Forward Earnings ratio.
TDG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.26 | ||
| Fwd PE | 29.74 |
4.2 Price Multiples
TDG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TDG is cheaper than 63.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TDG is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.92 | ||
| EV/EBITDA | 21.44 |
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.
TDG's earnings are expected to grow with 13.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.48
PEG (5Y)2.76
EPS Next 2Y12.66%
EPS Next 3Y13.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.98%, TDG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.47, 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 2.38, 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
251.06% of the earnings are spent on dividend by TDG. 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%
1282.46
-3.66 (-0.28%)
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 Cap72.27B
Analysts82.31
Price Target1643.23 (28.13%)
Short Float %1.94%
Short Ratio3.02
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)-2.65%
PT rev (3m)4.97%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-1.19%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.26 | ||
| Fwd PE | 29.74 | ||
| P/S | 8.42 | ||
| P/FCF | 37.92 | ||
| P/OCF | 34.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.44 |
EPS(TTM)36.37
EY2.84%
EPS(NY)43.13
Fwd EY3.36%
FCF(TTM)33.82
FCFY2.64%
OCF(TTM)37.32
OCFY2.91%
SpS152.24
BVpS-88.8
TBVpS-337.43
PEG (NY)3.48
PEG (5Y)2.76
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
WACC9.41%
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 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 Year11.02%
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 Year30.7%
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%