TDG Stock Analysis: Transdigm | NYSE
Aerospace & Defense | NYSE, USA | Market Cap: 75.426m USD | 12M Return: -8.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 496M
EPS Trend: 90.3%
Qual. Beats: 0
Rev. Trend: 99.0%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
TransDigm Group Incorporated (NYSE: TDG) is a U.S.-based designer, producer, and supplier of highly engineered aircraft components serving both commercial and military aerospace markets. The company operates through three segments: Power & Control, Airframe, and Non-Aviation, each offering specialized proprietary parts such as actuators, pumps, valves, sensors, cockpit displays, safety restraints, and refueling systems.
TransDigms customer base spans engine and power system suppliers, airframe manufacturers, airlines, third-party maintenance providers, military buying agencies, and repair depots, with additional reach into non-aviation end markets like off-road vehicles, child restraint systems, and satellite/space equipment. This diversification across platforms and customers supports a business model heavily weighted toward the aerospace aftermarket, where long product lifecycles and the need to maintain parts for aging fleets typically generate recurring, high-margin revenue.
The company was founded in 1993 and is headquartered in Cleveland, Ohio. It was originally known as TD Holding Corporation before adopting its current name in 2006, the same year it completed its IPO on the NYSE. TransDigm is classified within the Industrials sector and the Aerospace & Defense sub-industry, an industry known for its fragmented supplier base and high barriers to entry driven by stringent certification requirements.
- Commercial aerospace aftermarket recovery drives Power & Control segment
- Proprietary sole-source products sustain 40%+ operating margins
- Debt-funded bolt-on acquisitions expand aerospace component platform
| Net Income: 2.02b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -1.41 > 1.0 |
| NWC/Revenue: 64.60% < 20% (prev 51.67%; Δ 12.93% < -1%) |
| CFO/TA 0.08 > 3% & CFO 2.10b > Net Income 2.02b |
| Net Debt (28.1b) to EBITDA (4.78b): 5.88 < 3 |
| Current Ratio: 3.52 > 1.5 & < 3 |
| Outstanding Shares: last quarter (58.2m) vs 12m ago 0.17% < -2% |
| Gross Margin: 59.02% > 18% (prev 59.47%; Δ -0.44% > 0.5%) |
| Asset Turnover: 40.14% > 50% (prev 38.29%; Δ 1.85% > 0%) |
| Interest Coverage Ratio: 2.50 > 6 (EBIT TTM 4.44b / Interest Expense TTM 1.78b) |
| A: 0.24 (Total Current Assets 8.58b - Total Current Liabilities 2.44b) / Total Assets 25.4b |
| B: -0.38 (Retained Earnings -9.64b / Total Assets 25.4b) |
| C: 0.19 (EBIT TTM 4.44b / Avg Total Assets 23.7b) |
| D: -0.27 (Book Value of Equity -9.40b / Total Liabilities 34.8b) |
| Altman-Z'' = 1.32 = BB |
| DSRI: 1.05 (Receivables 1.72b/1.44b, Revenue 9.50b/8.39b) |
| GMI: 1.01 (GM 59.47% / 59.02%) |
| AQI: 0.94 (AQ_t 0.60 / AQ_t-1 0.64) |
| SGI: 1.13 (Revenue 9.50b / 8.39b) |
| TATA: -0.00 (NI 2.02b - CFO 2.10b) / TA 25.4b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of July 10, 2026, the stock is trading at USD 1295.71 with a total of 275,127 shares traded. Over the past week, the price has changed by -1.03%, over one month by +3.06%, over three months by +5.73% and over the past year by -8.83%.
Current recommended Stop Loss: 1241.30 (which is 4.2% or 1.5 ATR below the current price).
Transdigm has received a consensus analysts rating of 4.39. Therefore, it is recommended to buy TDG.
- StrongBuy: 14
- Buy: 4
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 1521.5 | 17.4% |
P/E Trailing = 42.0221
P/E Forward = 28.7356
P/S = 7.9371
P/B = 9.5527
P/EG = 3.0456
Revenue TTM = 9.50b USD
EBIT TTM = 4.44b USD
EBITDA TTM = 4.78b USD
Long Term Debt = 31.1b USD (from longTermDebt, last quarter)
Short Term Debt = 853.0m USD (from shortTermDebt, last quarter)
Debt = 32.0b USD (from shortLongTermDebtTotal, last quarter) + Leases 15.0m
Net Debt = 28.1b USD (calculated: Debt 32.0b - CCE 3.88b)
Enterprise Value = 104b USD (75.4b + Debt 32.0b - CCE 3.88b)
Interest Coverage Ratio = 2.50 (Ebit TTM 4.44b / Interest Expense TTM 1.78b)
EV/FCF = 55.98x (Enterprise Value 104b / FCF TTM 1.85b)
FCF Yield = 1.79% (FCF TTM 1.85b / Enterprise Value 104b)
FCF Margin = 19.47% (FCF TTM 1.85b / Revenue TTM 9.50b)
Net Margin = 21.29% (Net Income TTM 2.02b / Revenue TTM 9.50b)
Gross Margin = 59.02% ((Revenue TTM 9.50b - Cost of Revenue TTM 3.89b) / Revenue TTM)
Gross Margin QoQ = 59.39% (prev 56.72%)
Tobins Q-Ratio = 4.07 (Enterprise Value 104b / Total Assets 25.4b)
Interest Expense / Debt = 5.55% (Interest Expense 1.78b / Debt 32.0b)
Taxrate = 21.69% (577.0m / 2.66b)
NOPAT = 3.47b (EBIT 4.44b * (1 - 21.69%))
Current Ratio = 3.52 (Total Current Assets 8.58b / Total Current Liabilities 2.44b)
Debt / Equity = -3.41 (negative equity) (Debt 32.0b / totalStockholderEquity, last quarter -9.40b)
Debt / EBITDA = 5.88 (Net Debt 28.1b / EBITDA 4.78b)
Debt / FCF = 15.21 (Net Debt 28.1b / FCF TTM 1.85b)
Total Stockholder Equity = -8.34b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.55% (Net Income 2.02b / Total Assets 25.4b)
RoE = -24.26% (negative equity) (Net Income TTM 2.02b / Total Stockholder Equity -8.34b)
RoCE = 19.45% (EBIT 4.44b / Capital Employed (Equity -8.34b + L.T.Debt 31.1b))
RoIC = 14.86% (NOPAT 3.47b / Invested Capital 23.4b)
WACC = 7.62% (E(75.4b)/V(107b) * Re(9.01%) + D(32.0b)/V(107b) * Rd(5.55%) * (1-Tc(0.22)))
Discount Rate = 9.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 72.17 | Cagr: 0.38%
[DCF] Terminal Value 75.07% ; FCFF base≈1.87b ; Y1≈1.84b ; Y5≈1.86b
[DCF] Fair Price = 16.41 (EV 29.1b - Net Debt 28.1b = Equity 917.7m / Shares 55.9m; r=8.35% [WACC [floored]]; 5y FCF grow -2.68% → 2.50% )
EPS Correlation: 90.29 | EPS CAGR: 12.86% | SUE: 0.77 | # QB: 0
Revenue Correlation: 99.03 | Revenue CAGR: 15.52% | SUE: 1.93 | # QB: 1
EPS current Quarter (2026-06-30): EPS=10.28 | Chg30d=+0.22% | Revisions=+56% | Analysts=18
EPS current Year (2026-09-30): EPS=40.09 | Chg30d=+0.09% | Revisions=+76% | GrowthEPS=+7.4% | GrowthRev=+17.5%
EPS next Year (2027-09-30): EPS=46.96 | Chg30d=+0.01% | Revisions=+63% | GrowthEPS=+17.1% | GrowthRev=+9.3%
[Analyst] Revisions Ratio: +74% (up=42, down=5)