company background image
TDG

TransDigm GroupNYSE:TDG Stock Report

Last Price

US$616.62

Market Cap

US$34.1b

7D

-4.5%

1Y

7.0%

Updated

22 Jan, 2022

Data

Company Financials +
TDG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance4/6
Financial Health0/6
Dividends0/6

TDG Stock Overview

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally.

TransDigm Group Competitors

Raytheon Technologies

NYSE:RTX

US$130.7b

Boeing

NYSE:BA

US$120.7b

Lockheed Martin

NYSE:LMT

US$102.4b

Northrop Grumman

NYSE:NOC

US$63.2b

Price History & Performance

Summary of all time highs, changes and price drops for TransDigm Group
Historical stock prices
Current Share PriceUS$616.62
52 Week HighUS$688.03
52 Week LowUS$517.37
Beta1.59
1 Month Change-1.81%
3 Month Change-4.88%
1 Year Change6.98%
3 Year Change75.25%
5 Year Change181.56%
Change since IPO2,458.59%

Recent News & Updates

Dec 11
What Does TransDigm Group Incorporated's (NYSE:TDG) Share Price Indicate?

What Does TransDigm Group Incorporated's (NYSE:TDG) Share Price Indicate?

TransDigm Group Incorporated ( NYSE:TDG ) saw significant share price movement during recent months on the NYSE, rising...

Nov 22

Transdigm: Well-Positioned To Benefit From The Recovery In Air Travel

Transdigm is a leading aircraft parts supplier with recurring revenues and wide moats. The company grew steadily for well over 15 years from the secular increase in flight miles, organic growth, debt-funded acquisitions, and operating leverage until the COVID-19 outbreak hit commercial travel. Transdigm will benefit from the recovery in passenger miles, more out-of-warranty planes resulting from the cutback in Boeing’s production, and its continued acquisition of smaller competitors. The valuation is full, but patient long-term investors will do well buying on dips.

Shareholder Returns

TDGUS Aerospace & DefenseUS Market
7D-4.5%-3.6%-6.1%
1Y7.0%12.6%4.2%

Return vs Industry: TDG underperformed the US Aerospace & Defense industry which returned 12.6% over the past year.

Return vs Market: TDG exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is TDG's price volatile compared to industry and market?
TDG volatility
TDG Average Weekly Movement5.1%
Aerospace & Defense Industry Average Movement6.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: TDG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TDG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199313,300Kevin Steinhttps://www.transdigm.com

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its 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, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots.

TransDigm Group Fundamentals Summary

How do TransDigm Group's earnings and revenue compare to its market cap?
TDG fundamental statistics
Market CapUS$34.07b
Earnings (TTM)US$607.00m
Revenue (TTM)US$4.80b

56.1x

P/E Ratio

7.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TDG income statement (TTM)
RevenueUS$4.80b
Cost of RevenueUS$2.25b
Gross ProfitUS$2.55b
ExpensesUS$1.94b
EarningsUS$607.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.99
Gross Margin53.13%
Net Profit Margin12.65%
Debt/Equity Ratio-693.4%

How did TDG perform over the long term?

See historical performance and comparison

Valuation

Is TransDigm Group undervalued compared to its fair value and its price relative to the market?

14.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TDG ($616.62) is trading below our estimate of fair value ($720.61)

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 (56.1x) compared to the US Aerospace & Defense industry average (19.2x).

PE vs Market: TDG is poor value based on its PE Ratio (56.1x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: TDG is poor value based on its PEG Ratio (2.5x)


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.


Future Growth

How is TransDigm Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TDG's forecast earnings growth (22.2% per year) is above the savings rate (2%).

Earnings vs Market: TDG's earnings (22.2% per year) are forecast to grow faster than the US market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TDG's revenue (10.1% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: TDG's revenue (10.1% 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


Past Performance

How has TransDigm Group performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TDG has high quality earnings.

Growing Profit Margin: TDG's current net profit margins (12.7%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: TDG's earnings have declined by 3.9% per year over the past 5 years.

Accelerating Growth: TDG's earnings growth over the past year (30%) exceeds its 5-year average (-3.9% per year).

Earnings vs Industry: TDG earnings growth over the past year (30%) exceeded the Aerospace & Defense industry 12.2%.


Return on Equity

High ROE: TDG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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 (4.5%).

Interest Coverage: TDG's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Dividend

What is TransDigm Group current dividend yield, its reliability and sustainability?

0.017%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TDG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TDG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

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: TDG is not paying a notable dividend for the US market.


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

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Kevin Stein (55 yo)

5yrs

Tenure

US$22,060,463

Compensation

Dr. Kevin M. Stein, Ph D., serves as Independent Director of Perimeter Solutions, SA since November 09, 2021. He has been President and Chief Executive Officer of TransDigm Group Incorporated since January...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD22.06M) is above average for companies of similar size in the US market ($USD11.47M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: TDG's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: TDG's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TDG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TransDigm Group Incorporated's 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
  • Implied Market Cap: US$34.068b
  • Shares outstanding: 55.25m
  • Website: https://www.transdigm.com

Number of Employees


Location

  • TransDigm Group Incorporated
  • The Tower at Erieview
  • Suite 3000
  • Cleveland
  • Ohio
  • 44114
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:33
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.