NYSE:TDG

Stock Analysis Report

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

1.4%

TDG

-0.2%

US Aerospace & Defense

-0.6%

US Market


1 Year Return

43.1%

TDG

4.6%

US Aerospace & Defense

0.7%

US Market

TDG outperformed the Aerospace & Defense industry which returned 4.4% over the past year.

TDG outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

TDGIndustryMarket
7 Day1.4%-0.2%-0.6%
30 Day1.1%4.6%4.9%
90 Day7.4%6.2%1.7%
1 Year51.6%43.1%6.6%4.6%3.0%0.7%
3 Year130.1%83.0%60.3%51.6%44.8%35.4%
5 Year258.4%185.0%98.5%79.7%62.0%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

Valuation

Is TransDigm Group undervalued based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

TransDigm Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

TransDigm Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

TransDigm Group is poor value based on expected growth next year.


Price Based on Value of Assets

TransDigm Group has negative assets, we can't compare the value of its assets to the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is TransDigm Group expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TransDigm Group's revenue is expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).

TransDigm Group's earnings are expected to grow significantly at over 20% yearly.

TransDigm Group's revenue growth is expected to exceed the United States of America market average.

TransDigm Group's earnings growth is expected to exceed the United States of America market average.

TransDigm Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if TransDigm Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

TransDigm Group has delivered over 20% year on year earnings growth in the past 5 years.

TransDigm Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

TransDigm Group's 1-year earnings growth is negative, it can't be compared to the US Aerospace & Defense industry average.


Return on Equity

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.


Return on Assets

TransDigm Group used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

TransDigm Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TransDigm Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 (6.5%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

TransDigm Group 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 and Payments Analysis

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.

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.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as TransDigm Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of TransDigm Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of TransDigm Group's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Kevin Stein (53yo)

1.4yrs

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

Kevin's remuneration is higher than average for companies of similar size in United States of America.

Kevin's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

1.4yrs

Average Tenure

53yo

Average Age

The average tenure for the TransDigm Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

9.0yrs

Average Tenure

63yo

Average Age

The tenure for the TransDigm Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$4,31912 Mar 19
Sarah Wynne
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares10
Max PriceUS$431.94
SellUS$3,866,27001 Mar 19
Mervin Dunn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,944
Max PriceUS$432.28
SellUS$2,176,34325 Feb 19
Mervin Dunn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$435.27
SellUS$2,004,78022 Feb 19
Mervin Dunn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,600
Max PriceUS$435.82
SellUS$77,23412 Feb 19
Michael Graff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares182
Max PriceUS$424.36

Ownership Breakdown


Management Team

  • Nick Howley (67yo)

    Executive Chairman

    • Tenure: 16.2yrs
    • Compensation: US$13.13m
  • Kevin Stein (53yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$23.47m
  • Bernie Iversen (62yo)

    Executive Vice President of Mergers & Acquisitions and Business Development

    • Tenure: 7.3yrs
    • Compensation: US$14.06m
  • Mike Lisman (35yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: US$2.33m
  • Jorge Valladares (45yo)

    Chief Operating Officer

    • Tenure: 0.4yrs
    • Compensation: US$6.76m
  • Peter Palmer (55yo)

    Executive Vice President

    • Tenure: 7.6yrs
    • Compensation: US$2.12m
  • Jim Skulina (60yo)

    Executive Vice President

    • Tenure: 1.7yrs
    • 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: 0.8yrs

Board Members

  • David Barr (56yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$60.00k
  • Rob Small (52yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$157.05k
  • Bill Dries (67yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$157.05k
  • Sean Hennessy (61yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$172.05k
  • Nick Howley (67yo)

    Executive Chairman

    • Tenure: 16.2yrs
    • Compensation: US$13.13m
  • Merv Dunn (65yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$162.05k
  • Ray Laubenthal (58yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$60.00k
  • John Staer (68yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$157.05k
  • Kevin Stein (53yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$23.47m
  • Michael Graff (67yo)

    Independent Director

    • Tenure: 16.2yrs
    • 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$28.142b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TDGNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2006
T7DDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2006
0REKLSE (London Stock Exchange)YesCommon StockGBUSDMar 2006
TDG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 23:49
End of Day Share Price2019/09/20 00:00
Earnings2019/06/29
Annual Earnings2018/09/30


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.