TransDigm Group
Market Cap
US$34.4b
Last Updated
2020/02/20 01:03 UTC
Data Sources
Company Financials +
Executive Summary
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Moderate 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
Stable Share Price: TDG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.2%
TDG
-0.9%
US Aerospace & Defense
0.06%
US Market
1 Year Return
47.9%
TDG
24.3%
US Aerospace & Defense
19.4%
US Market
Return vs Industry: TDG exceeded the US Aerospace & Defense industry which returned 24.3% over the past year.
Return vs Market: TDG exceeded the US Market which returned 19.4% over the past year.
Shareholder returns
| TDG | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -0.9% | 0.06% |
| 30 Day | -0.4% | 0.9% | 1.1% |
| 90 Day | 14.0% | 6.7% | 8.9% |
| 1 Year | 65.7%47.9% | 26.5%24.3% | 21.9%19.4% |
| 3 Year | 206.4%151.9% | 52.8%44.7% | 48.9%39.3% |
| 5 Year | 284.9%189.4% | 91.3%73.1% | 71.9%53.1% |
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
1 day ago | Simply Wall St
Need To Know: TransDigm Group Incorporated (NYSE:TDG) Insiders Have Been Selling Shares3 weeks ago | Simply Wall St
Calculating The Fair Value Of TransDigm Group Incorporated (NYSE:TDG)1 month ago | Simply Wall St
At US$595, Is It Time To Put TransDigm Group Incorporated (NYSE:TDG) On Your Watch List?Valuation
Is TransDigm Group undervalued compared to its fair value and its price relative to the market?
60x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TDG ($641.46) is trading above our estimate of fair value ($480.01)
Significantly Below Fair Value: TDG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TDG is poor value based on its PE Ratio (60x) compared to the Aerospace & Defense industry average (20.6x).
PE vs Market: TDG is poor value based on its PE Ratio (60x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: TDG is poor value based on its PEG Ratio (2.9x)
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 13 analysts?
20.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TDG's forecast earnings growth (20.5% per year) is above the savings rate (1.7%).
Earnings vs Market: TDG's earnings (20.5% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TDG's revenue (5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: TDG's revenue (5% 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?
17.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TDG has high quality earnings.
Growing Profit Margin: TDG's current net profit margins (10.6%) are lower than last year (20.8%).
Past Earnings Growth Analysis
Earnings Trend: TDG's earnings have grown by 17.8% 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 (-26.5%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (10.8%).
Return on Equity
High ROE: TDG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
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%).
Interest Coverage: TDG's interest payments on its debt are not well covered by EBIT (2.4x 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?
5.07%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TDG's dividend (5.07%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: TDG's dividend (5.07%) is in the top 25% of dividend payers in the US market (3.7%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether TDG's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if TDG's dividend payments are increasing as they only just started paying a dividend.
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: TDG is not forecast to pay a dividend in 3 years.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Kevin Stein (53yo)
1.8yrs
Tenure
US$13,135,200
Compensation
Dr. Kevin M. Stein, Ph.D., has been President and Chief Executive Officer of TransDigm Group Incorporated since 2016 and April 25, 2018 respectively. Prior to that, Dr. Stein served as President and Chief  ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD13.14M) is about average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 16.6yrs | US$60.64m | 0.050% $17.1m | |
| President | 1.8yrs | US$13.14m | 0.015% $5.2m | |
| Chief Financial Officer | 1.6yrs | US$14.32m | 0.0027% $936.4k | |
| Executive Vice President of Mergers & Acquisitions and Business Development | 7.8yrs | US$18.30m | 0.0093% $3.2m | |
| Vice Chairman | 0yrs | US$24.43m | 0.047% $16.0m | |
| Chief Operating Officer | 0.8yrs | US$6.76m | 0.017% $5.8m | |
| Chief Accounting Officer | 1.3yrs | no data | 0.0011% $395.9k | |
| Director of Investor Relations | 0yrs | no data | no data | |
| General Counsel | 0yrs | no data | 0.0016% $568.1k | |
| Executive Vice President | 8yrs | US$2.12m | no data |
1.7yrs
Average Tenure
52yo
Average Age
Experienced Management: TDG's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 16.6yrs | US$60.64m | 0.050% $17.1m | |
| President | 1.8yrs | US$13.14m | 0.015% $5.2m | |
| Independent Director | 2.3yrs | US$116.40k | 0.059% $20.2m | |
| Independent Director | 9.9yrs | US$536.92k | 0.18% $61.4m | |
| Independent Director | 8.8yrs | US$461.92k | 0.0024% $843.5k | |
| Independent Director | 13.8yrs | US$386.92k | 0.059% $20.4m | |
| Independent Director | 12.4yrs | US$376.92k | 0.0028% $967.4k | |
| Independent Director | 4.2yrs | US$116.40k | 0.32% $111.0m | |
| Independent Director | 8.1yrs | US$344.92k | 0.00017% $58.5k | |
| Independent Director | 16.6yrs | US$148.68k | 0.041% $14.2m |
9.4yrs
Average Tenure
63yo
Average Age
Experienced Board: TDG's board of directors are considered experienced (9.4 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 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$34.428b
- Shares outstanding: 53.69m
- 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 |
| TDG | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | 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 |
| T1DG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 10 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The company operates through 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, 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. 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, thermal protection products, lighting and control technology, military personnel parachutes, and cargo delivery systems. This segment 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, as well as hydraulic/electromechanical actuators and fuel valves for land based gas turbines. This segment 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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 01:03 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/28 |
| Annual Earnings | 2019/09/30 |
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.