TransDigm Group
Market Cap
US$27.5b
Last Updated
2019/10/24 00:03 UTC
Data Sources
Company Financials +
Executive Summary
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally.
Snowflake
Fundamentals
Reasonable growth potential with questionable track record.
Similar Companies
Share Price & News
How has TransDigm Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-2.2%
TDG
-0.4%
US Aerospace & Defense
0.07%
US Market
1 Year Return
57.0%
TDG
8.9%
US Aerospace & Defense
8.9%
US Market
Return vs Industry: TDG exceeded the US Aerospace & Defense industry which returned 8.9% over the past year.
Return vs Market: TDG exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| TDG | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -0.4% | 0.07% |
| 30 Day | -2.2% | -1.9% | -0.3% |
| 90 Day | 3.8% | 0.8% | -1.6% |
| 1 Year | 66.3%57.0% | 11.0%8.9% | 11.3%8.9% |
| 3 Year | 119.7%91.0% | 57.1%48.3% | 46.3%36.8% |
| 5 Year | 249.1%177.6% | 90.2%71.9% | 62.1%44.3% |
Price Volatility Vs. Market
How volatile is TransDigm Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
11 hours ago | Simply Wall St
Read This Before Buying TransDigm Group Incorporated (NYSE:TDG) Shares3 weeks ago | Simply Wall St
At US$521, Is It Time To Put TransDigm Group Incorporated (NYSE:TDG) On Your Watch List?1 month ago | Simply Wall St
TransDigm Group (NYSE:TDG) Takes On Some Risk With Its Use Of DebtValuation
Is TransDigm Group undervalued compared to its fair value and its price relative to the market?
3.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TDG ($514.87) is trading below our estimate of fair value ($531.43)
Significantly Below Fair Value: TDG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TDG is poor value based on its PE Ratio (38.6x) compared to the Aerospace & Defense industry average (22.1x).
PE vs Market: TDG is poor value based on its PE Ratio (38.6x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: TDG is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: TDG has negative assets, so we can't compare its PB Ratio to the US Aerospace & Defense industry average.
Next Steps
Future Growth
How is TransDigm Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
24.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TDG's forecast earnings growth (24.9% per year) is above the savings rate (2.7%).
Earnings vs Market: TDG's earnings (24.9% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TDG's revenue (8.7% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: TDG's revenue (8.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if TDG's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has TransDigm Group performed over the past 5 years?
26.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: TDG's earnings have grown significantly by 26.4% per year over the past 5 years.
Accelerating Growth: TDG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TDG had negative earnings growth (-5.9%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (10.5%).
Return on Equity
High ROE: TDG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
ROA vs Industry: TDG has a higher Return on Assets than the Aerospace & Defense industry average last year.
Return on Capital Employed
ROCE Improving: TDG's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is TransDigm Group's financial position?
Financial Position Analysis
Short Term Liabilities: TDG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: TDG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: TDG has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: TDG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: TDG's debt is not well covered by operating cash flow (6.5%).
Interest Coverage: TDG's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Balance Sheet
Inventory Level: TDG has a low level of unsold assets or inventory.
Debt Coverage by Assets: TDG has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is TransDigm Group's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate TDG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate TDG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stable Dividend: Insufficient data to determine if TDG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TDG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TDG's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of TransDigm Group's salary, the management and board of directors tenure and is there insider trading?
1.5yrs
Average management tenure
CEO
Kevin Stein (53yo)
1.5yrs
Tenure
US$23,471,608
Compensation
Dr. Kevin M. Stein, Ph.D., has been President and Chief Executive Officer of TransDigm Group Incorporated since 2016 and April 25, 2018 respectively. Prior to that, Dr. Stein served as President and Chief  ...
CEO Compensation Analysis
Compensation vs. Market: Kevin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Kevin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
1.5yrs
Average Tenure
53yo
Average Age
Experienced Management: TDG's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Age and Tenure
9.0yrs
Average Tenure
63yo
Average Age
Experienced Board: TDG's board of directors are considered experienced (9 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Accounting Officer Chief Accounting Officer |
| Shares | 10 |
| Max Price | US$431.94 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 8,944 |
| Max Price | US$432.28 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$435.27 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,600 |
| Max Price | US$435.82 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 182 |
| Max Price | US$424.36 |
Ownership Breakdown
Management Team
Nick Howley (67yo)
Executive Chairman
- Tenure: 16.3yrs
- Compensation: US$13.13m
Kevin Stein (53yo)
President
- Tenure: 1.5yrs
- Compensation: US$23.47m
Bernie Iversen (62yo)
Executive Vice President of Mergers & Acquisitions and Business Development
- Tenure: 7.4yrs
- Compensation: US$14.06m
Mike Lisman (35yo)
Chief Financial Officer
- Tenure: 1.3yrs
- Compensation: US$2.33m
Jorge Valladares (45yo)
Chief Operating Officer
- Tenure: 0.5yrs
- Compensation: US$6.76m
Peter Palmer (55yo)
Executive Vice President
- Tenure: 7.7yrs
- Compensation: US$2.12m
Jim Skulina (60yo)
Executive Vice President
- Tenure: 1.8yrs
- Compensation: US$7.49m
Halle Terrion (51yo)
General Counsel
- Tenure: 0yrs
Liza Sabol
Director of Investor Relations
- Tenure: 0yrs
Sarah Wynne (45yo)
Chief Accounting Officer
- Tenure: 0.9yrs
Board Members
David Barr (56yo)
Independent Director
- Tenure: 2yrs
- Compensation: US$60.00k
Rob Small (52yo)
Independent Director
- Tenure: 9.6yrs
- Compensation: US$157.05k
Bill Dries (67yo)
Independent Director
- Tenure: 8.5yrs
- Compensation: US$157.05k
Sean Hennessy (61yo)
Independent Director
- Tenure: 13.5yrs
- Compensation: US$172.05k
Nick Howley (67yo)
Executive Chairman
- Tenure: 16.3yrs
- Compensation: US$13.13m
Merv Dunn (65yo)
Independent Director
- Tenure: 12.1yrs
- Compensation: US$162.05k
Ray Laubenthal (58yo)
Independent Director
- Tenure: 4.8yrs
- Compensation: US$60.00k
John Staer (68yo)
Independent Director
- Tenure: 7.8yrs
- Compensation: US$157.05k
Kevin Stein (53yo)
President
- Tenure: 1.5yrs
- Compensation: US$23.47m
Michael Graff (67yo)
Independent Director
- Tenure: 16.3yrs
- Compensation: US$162.05k
Company Information
TransDigm Group Incorporated's company bio, employee growth, exchange listings and data sources
Key Information
- Name: TransDigm Group Incorporated
- Ticker: TDG
- Exchange: NYSE
- Founded: 1993
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$27.481b
- Shares outstanding: 53.37m
- Website: https://www.transdigm.com
Number of Employees
Location
- TransDigm Group Incorporated
- The Tower at Erieview
- Suite 3000
- Cleveland
- Ohio
- 44114
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TDG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 2006 |
| T7D | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 2006 |
| 0REK | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 2006 |
| TDG * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Mar 2006 |
Biography
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The company operates in three segments: Power & Control, Airframe, and Non-aviatio ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/24 00:03 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/29 |
| Annual Earnings | 2018/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.