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Company Analysis

Transdigm Group Incorporated TDG

A comprehensive view of key metrics, scores, and financial health for Transdigm Group Incorporated

Overview of TransDigm Group Incorporated

TDG NYQ
Industrials Aerospace & Defense Framework: General Corporate Large Cap
TransDigm Group Incorporated (TDG), is a Large Cap company, in the Aerospace & Defense industry, last closed at $1213.62, about 73.5% overvalued vs fair value, -4.6% 1Y return, ranked 198/669 in sector.
Metrics P/E 37.0× Rev Growth 11.2% ROE -26.0% Gross Margin 60.1% Div Yield 12.96%
USD 1213.62
5.83%
(Delayed)
• Vol 90d: 26.4%
52-Week Range
Market Cap
$67.08B
Enterprise Value
$97.89B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Fair
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Fair
Completeness: 100%
Confidence: 96%
Updated: Oct 31
Top Beats

Quick Facts

Website https://www.transdigm.com
HQ Cleveland, OH
Employees 16,500
Fiscal year Sep 30

Next Events

Earnings Nov 5 Estimated

Fair Value Snapshot

Bear Base Bull
$285
$321
$358
Current: $1213.62 -74% vs base

Engine Room Money Flow™

Large Cap

Corporate Free Cash Flow - Where revenue goes and how value is created

Flow Steps
Revenue
$8.8B
11.2%%
Gross Profit
$5.3B
13.7%%
Operating Income
$4.2B
18%%
Net Income
$2.1B
21%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Corporate Free Cash Flow

Quality & Reliability Indicators

Cash Conversion Ratio FY2025
87.6%
Good

Operating Cash Flow / Net Income

FCF / Net Income - measures how well earnings convert to cash

Locked Metric
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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$10.1B
557.8% of FCF

Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
4
Active Leaks
2/4
Improving
0
High Impact
2
Critical
Locked Leak
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Locked Leak
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Moat Analysis Corporate Default

Competitive Advantage Assessment

Evaluating Transdigm Group Incorporated's durable competitive advantages across 6 defense dimensions

Overall Moat Strength
78
/100
Strong
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Margins Consistently Above Peers Gross margin at 60.1% (top 14%) and operating margin at 47.2% (top 1%) indicate strong pricing power.
  • ROIC Sustainably Above Peers ROIC at 90.3th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.30), raising refinancing risk.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
78
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

vs Industry Peers 92% Coverage
Trade-Off Triangle Visualization A ternary plot showing TDG's balance between Growth (34.2%), Profitability (43.7%), and Safety (22.1%). Growth 34% Safety 22% Profitability 44%

Click axes to expand details. Marker shows current allocation.

3-Year Trend Analysis Locked
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Growth

71th percentile vs peers
72
Key Signals
Rev Growth YoY 11.2% 71p Revenue CAGR 3Y 17.6% 82p EPS CAGR 3Y 33.8% 84p EPS Growth YoY 20.2% 58p TSR 4.3% 53p
Strengths
  • Revenue CAGR 3Y in top 20% of peers (17.6%, 82th percentile)
  • EPS CAGR 3Y in top 20% of peers (33.8%, 84th percentile)
  • Superior capital returns - 2 return metrics above peer median
  • Growth above peer median with strong metric coverage (100%)
Risks

No significant risks identified for this axis.

Profitability

91th percentile vs peers
92
Key Signals
Strengths
Risks
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Safety

46th percentile vs peers
46
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for Transdigm Group Incorporated.

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$321.03
- - -
-73.5% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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