(TDG) Transdigm - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 67.013m USD | Total Return: -10.3% in 12m
Avg Turnover: 437M
EPS Trend: 94.7%
Qual. Beats: 1
Rev. Trend: 99.0%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Confidence
TransDigm Group Incorporated (TDG) is a global designer and manufacturer of highly engineered aircraft components across three primary segments: Power & Control, Airframe, and Non-Aviation. The company supplies a diverse range of proprietary products, including mechanical actuators, ignition systems, cockpit security components, and safety restraints, to commercial airlines, military agencies, and original equipment manufacturers.
The business model focuses on niche aerospace components that are frequently sole-sourced, providing the company with significant pricing power and stable long-term demand. In the aerospace sector, the aftermarket for replacement parts often generates higher profit margins than initial equipment sales due to the critical nature of flight-certified hardware.
Investors can further examine these competitive advantages and valuation metrics on ValueRay.
- Commercial aerospace aftermarket demand drives high-margin recurring revenue growth
- Sole-source proprietary component portfolio maintains industry-leading EBITDA margins
- Strategic acquisitions and capital allocation drive long-term shareholder value creation
- Global air travel volume fluctuations impact spare parts replacement cycles
- Defense spending levels influence military segment revenue and contract stability
| 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): 5.89 < 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 0.59%; Δ 5.84k% > 0.5%) |
| Asset Turnover: 40.14% > 50% (prev 38.29%; Δ 1.85% > 0%) |
| Interest Coverage Ratio: 2.49 > 6 (EBITDA TTM 4.78b / 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 4.43b / Avg Total Assets 23.7b) |
| D: -0.28 (Book Value of Equity -9.66b / Total Liabilities 34.8b) |
| Altman-Z'' = 1.31 = BB |
| DSRI: 1.05 (Receivables 1.72b/1.44b, Revenue 9.50b/8.39b) |
| GMI: 1.01 (GM 59.02% / 59.47%) |
| 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 May 26, 2026, the stock is trading at USD 1213.51 with a total of 448,600 shares traded.
Over the past week, the price has changed by +5.62%,
over one month by +4.76%,
over three months by -6.30% and
over the past year by -10.34%.
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 | 1532.2 | 26.3% |
P/E Trailing = 37.452
P/E Forward = 29.7619
P/S = 7.0518
P/B = 9.5527
P/EG = 3.0456
Revenue TTM = 9.50b USD
EBIT TTM = 4.43b 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 = 95.1b USD (67.0b + Debt 32.0b - CCE 3.88b)
Interest Coverage Ratio = 2.49 (Ebit TTM 4.43b / Interest Expense TTM 1.78b)
EV/FCF = 51.43x (Enterprise Value 95.1b / FCF TTM 1.85b)
FCF Yield = 1.94% (FCF TTM 1.85b / Enterprise Value 95.1b)
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 = 3.74 (Enterprise Value 95.1b / Total Assets 25.4b)
Interest Expense / Debt = 5.55% (Interest Expense 1.78b / Debt 32.0b)
Taxrate = 23.43% (164.0m / 700.0m)
NOPAT = 3.39b (EBIT 4.43b * (1 - 23.43%))
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 = 5.89 (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 = 155.8% (Net Income TTM 2.02b / Total Stockholder Equity 1.30b)
RoCE = 13.65% (EBIT 4.43b / Capital Employed (Equity 1.30b + L.T.Debt 31.1b))
RoIC = 14.27% (NOPAT 3.39b / Invested Capital 23.8b)
WACC = 7.50% (E(67.0b)/V(99.0b) * Re(9.05%) + D(32.0b)/V(99.0b) * Rd(5.55%) * (1-Tc(0.23)))
Discount Rate = 9.05% (= 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: 94.75 | EPS CAGR: 18.40% | SUE: 1.79 | # QB: 1
Revenue Correlation: 99.03 | Revenue CAGR: 15.52% | SUE: 1.93 | # QB: 1
EPS current Quarter (2026-06-30): EPS=10.22 | Chg30d=+1.63% | Revisions=+53% | Analysts=20
EPS current Year (2026-09-30): EPS=39.99 | Chg30d=+2.20% | Revisions=+73% | GrowthEPS=+7.1% | GrowthRev=+17.5%
EPS next Year (2027-09-30): EPS=46.85 | Chg30d=+2.28% | Revisions=+60% | GrowthEPS=+17.2% | GrowthRev=+8.9%
[Analyst] Revisions Ratio: +73%