TransDigm Group
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TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The last earnings update was 41 days ago. More info.
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- TransDigm Group has significant price volatility in the past 3 months.
TDG Share Price and Events
7 Day Returns
1 Year Returns
TDG Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| TransDigm Group (TDG) | 2.7% | 2% | 34.6% | 45.6% | 100.7% | 142.3% |
| US Aerospace & Defense | 0.3% | -2% | 8% | -9.1% | 39.9% | 52.9% |
| US Market | 1.6% | 2.1% | 12.8% | 3.2% | 38.6% | 43.6% |
1 Year Return vs Industry and Market
- TDG outperformed the Aerospace & Defense industry which returned -9.1% over the past year.
- TDG outperformed the Market in United States of America which returned 3.2% over the past year.
TDG Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
TransDigm Group
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for TransDigm Group.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 4 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Aerospace & Defense Unlevered Beta | Simply Wall St/ S&P Global | 0.92 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.918 (1 + (1- 21%) (54.38%)) |
1.209 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.21 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.209 * 5.96%) |
9.94% |
Discounted Cash Flow Calculation for NYSE:TDG using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for TransDigm Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.94%) |
|
|---|---|---|---|
| 2019 | -2,167.00 | Analyst x1 | -1,971.15 |
| 2020 | 1,250.50 | Analyst x2 | 1,034.67 |
| 2021 | 1,169.98 | Est @ -6.44% | 880.55 |
| 2022 | 1,126.82 | Est @ -3.69% | 771.43 |
| 2023 | 1,106.96 | Est @ -1.76% | 689.33 |
| 2024 | 1,102.36 | Est @ -0.42% | 624.43 |
| 2025 | 1,108.19 | Est @ 0.53% | 570.99 |
| 2026 | 1,121.36 | Est @ 1.19% | 525.56 |
| 2027 | 1,139.88 | Est @ 1.65% | 485.95 |
| 2028 | 1,162.39 | Est @ 1.97% | 450.76 |
| Present value of next 10 years cash flows | $4,062.54 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $1,162.39 × (1 + 2.73%) ÷ (9.94% – 2.73%) |
$16,571.01 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $16,571.01 ÷ (1 + 9.94%)10 |
$6,426.08 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $4,062.54 + $6,426.08 |
$10,488.62 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $10,488.62 / 52.90 |
$198.28 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $198.28 |
| Current discount | Discount to share price of
$448.80
= -1 x ($448.80 - $198.28) / $198.28 |
-126.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of TransDigm Group is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for TransDigm Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
TransDigm Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-29) in USD | $14.73 |
| NYSE:TDG Share Price ** | NYSE (2019-03-19) in USD | $448.8 |
| United States of America Aerospace & Defense Industry PE Ratio | Median Figure of 41 Publicly-Listed Aerospace & Defense Companies | 22x |
| United States of America Market PE Ratio | Median Figure of 3,056 Publicly-Listed Companies | 17.77x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of TransDigm Group.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:TDG Share Price ÷ EPS (both in USD) = 448.8 ÷ 14.73 |
30.47x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- TransDigm Group is overvalued based on earnings compared to the US Aerospace & Defense industry average.
- TransDigm Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
TransDigm Group's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 30.47x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
20.9%per year |
| United States of America Aerospace & Defense Industry PEG Ratio | Median Figure of 34 Publicly-Listed Aerospace & Defense Companies | 1.72x |
| United States of America Market PEG Ratio | Median Figure of 2,107 Publicly-Listed Companies | 1.49x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 30.47x ÷ 20.9% |
1.46x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- TransDigm Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
TransDigm Group's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-29) in USD | $-31.54 |
| NYSE:TDG Share Price * | NYSE (2019-03-19) in USD | $448.8 |
| United States of America Aerospace & Defense Industry PB Ratio | Median Figure of 56 Publicly-Listed Aerospace & Defense Companies | 2.64x |
| United States of America Market PB Ratio | Median Figure of 5,154 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:TDG Share Price ÷ Book Value per Share (both in USD) = 448.8 ÷ -31.54 |
-14.23x |
* Primary Listing of TransDigm Group.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- TransDigm Group has negative assets, we can't compare the value of its assets to the US Aerospace & Defense industry average.
Value checks
We assess TransDigm Group's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check) TransDigm Group has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
TDG Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- TransDigm Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- TransDigm Group's earnings growth is expected to exceed the United States of America market average.
- TransDigm Group's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:TDG Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | 20.9% |
| NYSE:TDG Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 18.8% |
| United States of America Aerospace & Defense Industry Earnings Growth Rate | Market Cap Weighted Average | 10.3% |
| United States of America Aerospace & Defense Industry Revenue Growth Rate | Market Cap Weighted Average | 5.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-09-30 | ||||
| 2021-09-30 | 7,040 | 1,621 | 1,327 | 2 |
| 2020-09-30 | 6,662 | 1,266 | 1,075 | 4 |
| 2019-09-30 | 5,300 | 1,257 | 832 | 4 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-29 | 3,956 | 1,059 | 821 |
| 2018-09-30 | 3,811 | 1,022 | 905 |
| 2018-06-30 | 3,686 | 924 | 796 |
| 2018-03-31 | 3,603 | 852 | 748 |
| 2017-12-30 | 3,538 | 856 | 702 |
| 2017-09-30 | 3,504 | 789 | 469 |
| 2017-07-01 | 3,456 | 756 | 503 |
| 2017-04-01 | 3,356 | 787 | 494 |
| 2016-12-31 | 3,284 | 730 | 480 |
| 2016-09-30 | 3,171 | 683 | 583 |
| 2016-07-02 | 3,106 | 630 | 570 |
| 2016-04-02 | 3,000 | 625 | 509 |
| 2016-01-02 | 2,822 | 511 | 478 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
All data from TransDigm Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-09-30 | ||||
| 2021-09-30 | 24.14 | 24.14 | 24.14 | 1.00 |
| 2020-09-30 | 18.90 | 20.03 | 17.76 | 2.00 |
| 2019-09-30 | 14.72 | 15.52 | 13.92 | 2.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-29 | 14.73 |
| 2018-09-30 | 16.28 |
| 2018-06-30 | 14.37 |
| 2018-03-31 | 13.55 |
| 2017-12-30 | 12.70 |
| 2017-09-30 | 8.45 |
| 2017-07-01 | 9.02 |
| 2017-04-01 | 8.82 |
| 2016-12-31 | 8.56 |
| 2016-09-30 | 10.39 |
| 2016-07-02 | 10.12 |
| 2016-04-02 | 9.00 |
| 2016-01-02 | 8.44 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if TransDigm Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess TransDigm Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
TransDigm Group has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
TDG Past Performance
How has TransDigm Group performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- TransDigm Group has delivered over 20% year on year earnings growth in the past 5 years.
- TransDigm Group's 1-year earnings growth is less than its 5-year average (17.4% vs 30.3%)
- TransDigm Group's earnings growth has not exceeded the US Aerospace & Defense industry average in the past year (17.4% vs 34.3%).
Earnings and Revenue History
All data from TransDigm Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-29 | 3,956.47 | 821.26 | 453.35 | |
| 2018-09-30 | 3,811.13 | 905.39 | 442.50 | |
| 2018-06-30 | 3,685.58 | 795.96 | 427.27 | |
| 2018-03-31 | 3,602.57 | 748.40 | 423.06 | |
| 2017-12-30 | 3,538.23 | 702.25 | 414.29 | |
| 2017-09-30 | 3,504.29 | 469.28 | 409.08 | |
| 2017-07-01 | 3,455.62 | 503.09 | 405.22 | |
| 2017-04-01 | 3,355.66 | 493.88 | 387.86 | |
| 2016-12-31 | 3,283.73 | 479.87 | 378.17 | |
| 2016-09-30 | 3,171.41 | 583.41 | 356.86 | |
| 2016-07-02 | 3,105.98 | 570.42 | 342.38 | |
| 2016-04-02 | 2,999.68 | 508.91 | 332.39 | |
| 2016-01-02 | 2,821.91 | 478.12 | 314.95 | |
| 2015-09-30 | 2,707.12 | 443.85 | 302.92 | |
| 2015-06-27 | 2,539.56 | 410.33 | 292.94 | |
| 2015-03-28 | 2,458.75 | 216.49 | 283.44 | |
| 2014-12-27 | 2,430.48 | 190.47 | 282.30 | |
| 2014-09-30 | 2,372.91 | 180.28 | 271.85 | |
| 2014-06-28 | 2,270.40 | 61.02 | 252.87 | |
| 2014-03-29 | 2,148.46 | 194.42 | 262.22 | |
| 2013-12-28 | 2,023.30 | 177.49 | 248.25 | |
| 2013-09-30 | 1,924.40 | 131.55 | 246.33 | |
| 2013-06-29 | 1,847.27 | 230.52 | 245.11 | |
| 2013-03-30 | 1,820.29 | 282.29 | 223.11 | |
| 2012-12-29 | 1,778.15 | 295.90 | 215.56 | |
| 2012-09-30 | 1,700.21 | 321.67 | 199.61 | |
| 2012-06-30 | 1,580.56 | 298.12 | 178.99 | |
| 2012-03-31 | 1,444.10 | 266.04 | 157.94 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if TransDigm Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
- TransDigm Group used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
- TransDigm Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess TransDigm Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
TransDigm Group has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
TDG Health
How is TransDigm Group's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up TransDigm Group's finances.
The net worth of a company is the difference between its assets and liabilities.
- TransDigm Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- TransDigm Group's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- TransDigm Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from TransDigm Group Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-29 | -1,666.89 | 12,910.29 | 2,349.74 |
| 2018-09-30 | -1,808.47 | 12,877.95 | 2,084.65 |
| 2018-06-30 | -2,098.48 | 12,897.47 | 1,858.83 |
| 2018-03-31 | -2,309.34 | 11,736.36 | 1,013.51 |
| 2017-12-30 | -2,599.71 | 11,760.91 | 857.86 |
| 2017-09-30 | -2,951.20 | 11,793.13 | 650.56 |
| 2017-07-01 | -1,895.45 | 11,128.28 | 970.56 |
| 2017-04-01 | -2,038.76 | 11,135.10 | 985.39 |
| 2016-12-31 | -1,874.63 | 10,859.34 | 972.36 |
| 2016-09-30 | -651.49 | 10,278.62 | 1,586.99 |
| 2016-07-02 | -808.25 | 10,299.29 | 1,666.70 |
| 2016-04-02 | -961.82 | 8,420.07 | 612.02 |
| 2016-01-02 | -964.27 | 8,402.77 | 805.29 |
| 2015-09-30 | -1,038.31 | 8,424.10 | 714.03 |
| 2015-06-27 | -1,169.03 | 8,499.32 | 915.35 |
| 2015-03-28 | -1,326.21 | 7,602.48 | 392.52 |
| 2014-12-27 | -1,464.73 | 7,515.33 | 1,011.63 |
| 2014-09-30 | -1,556.10 | 7,497.85 | 819.55 |
| 2014-06-28 | -1,591.51 | 7,518.66 | 729.13 |
| 2014-03-29 | -125.63 | 5,740.28 | 475.69 |
| 2013-12-28 | -234.18 | 5,741.04 | 410.92 |
| 2013-09-30 | -336.38 | 5,745.74 | 564.74 |
| 2013-06-29 | 801.73 | 4,346.70 | 269.17 |
| 2013-03-30 | 685.37 | 4,353.50 | 680.02 |
| 2012-12-29 | 598.85 | 4,328.93 | 554.43 |
| 2012-09-30 | 1,218.83 | 3,628.93 | 440.52 |
| 2012-06-30 | 1,106.65 | 3,633.25 | 302.72 |
| 2012-03-31 | 994.92 | 3,636.88 | 201.48 |
- TransDigm Group has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
- Irrelevant to check if TransDigm Group's debt level has increased considering it has negative shareholder equity.
- Debt is not well covered by operating cash flow (8.2%, less than 20% of total debt).
- Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
Financial health checks
We assess TransDigm Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) TransDigm Group has a total score of 1/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
TDG Dividends
What is TransDigm Group's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
TransDigm Group
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate TransDigm Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate TransDigm Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| United States of America Aerospace & Defense Industry Average Dividend Yield | Market Cap Weighted Average of 23 Stocks | 2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-09-30 | 0.00 | 1.00 |
| 2021-09-30 | 0.00 | 4.00 |
| 2020-09-30 | 0.00 | 5.00 |
| 2019-09-30 | 0.00 | 5.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as TransDigm Group has not reported any payouts.
- Unable to verify if TransDigm Group's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess TransDigm Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can TransDigm Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) TransDigm Group has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
TDG Management
CEO
| COMPENSATION | $23,471,608 |
| AGE | 52 |
| TENURE AS CEO | 0.9 years |
CEO Bio
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 Operating Officer at TransDigm Group Incorporated from January 2017 until March 2018. Dr. Stein served as an Executive Vice President of TransDigm Group Incorporated since November 2014. Dr. Stein served as the Chief Operating Officer of Power & Control at TransDigm Group Incorporated since October 20, 2014 until December 2016 and was responsible for the Fastener Products segment. Dr. Stein served as Executive Vice President at Precision Castparts Corp. from 2009 to November 2011 and served as its President of Pcc Structurals since 2011. He served as President of Fastener Products Division at Precision Castparts Corp. since 2009. He served as President of Cooper Bussmann Inc. since August 22, 2005. Dr. Stein joined Cooper Bussmann from Tyco Electronics, where he has been employed for six years, as general manager of the Raychem Circuit Protection unit. Previously, he served as Global Operations Director and product line general manager of Tyco and Raychem. Dr. Stein served as Chief Operating Officer—Power since October 2014 until December 2016. Dr. Stein served as Executive Vice President and President of the Structurals division of Precision Castparts Corp. from November 2011 to October 2014 and Executive Vice President and President of the Fasteners division of Precision Castparts Corp. from January 2009 to November 2011. He has been Director of TransDigm Group Inc. since May 2018. He holds a BS degree in Chemistry from Hobart College, Geneva, NY, Dr. Stein earned an M.S. degree in Chemistry and Ph.D. in Inorganic Chemistry from Stanford University.
CEO Compensation
- Kevin's compensation has increased by more than 20% in the past year.
- Kevin's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the TransDigm Group management team in years:
- The average tenure for the TransDigm Group management team is less than 2 years, this suggests a new team.
Management Team
Nick Howley
Executive Chairman
$13M
66
Kevin Stein
President
$23M
52
0.9 yrs
Mike Lisman
Chief Financial Officer
$2M
34
0.7 yrs
Jorge Valladares
Chief Operating Officer of Power Segment
$7M
44
5.4 yrs
Jim Skulina
Executive Vice President
$7M
59
1.2 yrs
Sarah Wynne
Chief Accounting Officer
44
0.3 yrs
Liza Sabol
Director of Investor Relations
Halle Terrion
General Counsel
50
Bernie Iversen
Executive Vice President of Mergers & Acquisitions and Business Development
$14M
61
6.8 yrs
Peter Palmer
Executive Vice President
$2M
54
7.1 yrs
Board of Directors Tenure
Average tenure and age of the TransDigm Group board of directors in years:
- The average tenure for the TransDigm Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Kevin Stein
President
$23M
52
0.8 yrs
Sean Hennessy
Independent Director
$172K
60
12.9 yrs
Nick Howley
Executive Chairman
$13M
66
15.7 yrs
Michael Graff
Independent Director
$162K
66
15.7 yrs
Merv Dunn
Independent Director
$162K
64
11.5 yrs
David Barr
Director
$60K
55
1.4 yrs
Douglas Peacock
Independent Director
$160K
79
15.7 yrs
Ray Laubenthal
Director
$60K
57
4.2 yrs
Rob Small
Independent Director
$157K
51
9 yrs
Bill Dries
Independent Director
$157K
66
7.9 yrs
Who owns this company?
Recent Insider Trading
- TransDigm Group insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 12. Mar 19 | Buy | Sarah Wynne | Individual | 11. Mar 19 | 11. Mar 19 | 10 | $431.94 | $4,319 | ||
| 01. Mar 19 | Sell | Mervin Dunn | Individual | 26. Feb 19 | 26. Feb 19 | -8,944 | $432.28 | $-3,866,270 | ||
| 25. Feb 19 | Sell | Mervin Dunn | Individual | 22. Feb 19 | 22. Feb 19 | -5,000 | $435.27 | $-2,176,343 | ||
| 22. Feb 19 | Sell | Mervin Dunn | Individual | 22. Feb 19 | 22. Feb 19 | -4,600 | $435.82 | $-2,004,780 | ||
| 12. Feb 19 | Sell | Michael Graff | Individual | 08. Feb 19 | 08. Feb 19 | -182 | $424.36 | $-77,234 | ||
Management checks
We assess TransDigm Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) TransDigm Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
TDG News
Simply Wall St News
TransDigm Group Incorporated (NYSE:TDG) Earns A Nice Return On Capital Employed
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleIs TransDigm Group Incorporated's (NYSE:TDG) Growth Strong Enough To Justify Its February Share Price?
TransDigm Group Incorporated (NYSE:TDG) is considered a high growth stock. … Check out our latest analysis for TransDigm Group? … Analysts are predicting good growth prospects for TransDigm Group over the next couple of years
Simply Wall St - – Full articleIs TransDigm Group Incorporated (NYSE:TDG) Potentially Undervalued?
Let's talk about the popular TransDigm Group Incorporated (NYSE:TDG). … received a lot of attention from a substantial price increase on the NYSE over the last few months … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock.
Simply Wall St - – Full articleIs TransDigm Group Incorporated (NYSE:TDG) Worth US$350 Based On Intrinsic Value?
by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleHave Insiders Been Buying TransDigm Group Incorporated (NYSE:TDG) Shares?
So before you buy or sell TransDigm Group Incorporated (NYSE:TDG), you may well want to know whether insiders have been buying or selling. … The insider buying may not tell us much about how insiders feel about the current share price. … In the last twelve months there was more buying than selling by TransDigm Group insiders
Simply Wall St - – Full articleTransDigm Group Incorporated (NYSE:TDG): What Are Investors Earning On Their Capital?
and want to begin learning the link between TransDigm Group Incorporated (NYSE:TDG)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently TransDigm Group is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).
Simply Wall St - – Full articleWhat Are Analysts Saying About TransDigm Group Incorporated's (NYSE:TDG) Earnings Trajectory?
TransDigm Group Incorporated's (NYSE:TDG) latest earnings update in September 2018a … suggested
Simply Wall St - – Full articleWhat Does TransDigm Group Incorporated's (NYSE:TDG) PE Ratio Tell You?
This analysis is intended to introduce important early concepts to people who are starting to invest. … Although some investors may see this as unappealing, it is important to understand the assumptions behind the P/E ratio before making judgments. … I will explain what the P/E ratio is as well as what you should look out for when using it
Simply Wall St - – Full articleIs There Now An Opportunity In TransDigm Group Incorporated (NYSE:TDG)?
This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether TransDigm Group's current trading price of $357.53 reflective of the actual value of the? … Let’s take a look at TransDigm Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleTransDigm Group Incorporated (NYSE:TDG): What Are Investors Earning On Their Capital?
and want a simplistic look at the return on TransDigm Group Incorporated (NYSE:TDG) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently TransDigm Group is able to use capital to create earnings will help us understand your potential return.
Simply Wall St - – Full articleTDG Company Info
Description
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-aviation. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, databus and power controls, hoists, winches and lifting devices, and cargo loading and handling systems. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, and cargo delivery systems. It serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Non-aviation segment offers seat belts and safety restraints for ground transportation applications, mechanical/electro-mechanical actuators and controls for space applications, and refueling systems for heavy equipment. It serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is headquartered in Cleveland, Ohio.
Details
| Name: | TransDigm Group Incorporated |
| TDG | |
| Exchange: | NYSE |
| Founded: | 1993 |
| $23,740,243,164 | |
| 52,897,155 | |
| Website: | http://www.transdigm.com |
| Address: |
TransDigm Group Incorporated The Tower at Erieview, Suite 3000, Cleveland, Ohio, 44114, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | TDG | Common Stock | New York Stock Exchange | US | USD | 15. Mar 2006 | |
| DB | T7D | Common Stock | Deutsche Boerse AG | DE | EUR | 15. Mar 2006 | |
| LSE | 0REK | Common Stock | London Stock Exchange | GB | USD | 15. Mar 2006 |
Number of employees
Current staff
Industry
| Aerospace and Defense | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/19 23:59 |
| End of day share price update: | 2019/03/19 00:00 |
| Last estimates confirmation: | 2019/03/19 |
| Last earnings filing: | 2019/02/06 |
| Last earnings reported: | 2018/12/29 |
| Last annual earnings reported: | 2018/09/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
