| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 4/6 |
| Financial Health | 0/6 |
| Dividends | 0/6 |
TDG Stock Overview
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally.
TransDigm Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$616.62 |
| 52 Week High | US$688.03 |
| 52 Week Low | US$517.37 |
| Beta | 1.59 |
| 1 Month Change | -1.81% |
| 3 Month Change | -4.88% |
| 1 Year Change | 6.98% |
| 3 Year Change | 75.25% |
| 5 Year Change | 181.56% |
| Change since IPO | 2,458.59% |
Recent News & Updates
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...
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
| TDG | US Aerospace & Defense | US Market | |
|---|---|---|---|
| 7D | -4.5% | -3.6% | -6.1% |
| 1Y | 7.0% | 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
| TDG volatility | |
|---|---|
| TDG Average Weekly Movement | 5.1% |
| Aerospace & Defense Industry Average Movement | 6.2% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1993 | 13,300 | Kevin Stein | https://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
| TDG fundamental statistics | |
|---|---|
| Market Cap | US$34.07b |
| Earnings (TTM) | US$607.00m |
| Revenue (TTM) | US$4.80b |
56.1x
P/E Ratio7.1x
P/S RatioIs TDG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TDG income statement (TTM) | |
|---|---|
| Revenue | US$4.80b |
| Cost of Revenue | US$2.25b |
| Gross Profit | US$2.55b |
| Expenses | US$1.94b |
| Earnings | US$607.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 10.99 |
| Gross Margin | 53.13% |
| Net Profit Margin | 12.65% |
| Debt/Equity Ratio | -693.4% |
How did TDG perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 23:33 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/09/30 |
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.