TransDigm Group INC (TDG)
Industrials · Aerospace & Defense · US stock · S&P 500 component
$1,141.74
▲ +12.36 (1.09%)
Fair valueFair
$1,311 +14.8% to fair value
$656fair band $1,116–$1,589$1,967
Day's range
$1,105.26 – $1,144.41
52-week range
$1,071.25 – $1,463.03
Red flags⚠ Negative equity⚠ Dividend may be at risk⚠ Negative equity⚠ Dividend may be at risk⚠ Negative equity⚠ Dividend may be at risk⚠ Negative equity⚠ Dividend may be at risk⚠ Negative equity⚠ Dividend may be at risk
About TransDigm Group INC
TransDigm designs and makes specialised components for commercial and military aircraft, including actuators, sensors, ignition systems and cockpit parts. Many of its products are proprietary and sole-source, and they are sold to aircraft manufacturers and to airlines and operators needing replacement parts. A large share of revenue comes from the aftermarket. The company also grows by acquiring smaller aerospace businesses and funds many of those deals with borrowed money.
The company reported trailing revenue of $10.0 billion and three-year growth of 17.6% a year. Profitability figures show an operating margin of 46.0% and a return on invested capital of 18%. Its net debt to EBITDA ratio stands at 6.0 times. The dividend yield is 8.1%. Its X-Ray Score is 57 out of 100. The figures are a snapshot of reported results rather than a forecast.
Price chart
52-wk range $1,071.25 – $1,463.03Volume 488,958Daily, split-adjusted
Vitals
Market cap$65.5B
52-week range$1,071.25 – $1,463.03
Volume (last day)488,958
P/E (TTM)31.1
EBIT / EV yield4.8%
Free-cash-flow yield2.9%
Dividend yield8.1%
Revenue (TTM)$10.0B
Net income (TTM)$2.1B
Operating margin46.0%
Return on capital17.8%
Debt incl. leases$32.8B
Cash & securities$2.8B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$1,311middle half of models $1,066 – $1,670
Fair
+14.8% to fair value
Average of the 12 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $1,142
Undervalued < $1,116Fair $1,116 – $1,589Overvalued > $1,589
P/E multiple
$1,196
P/S multiple
$1,082
EV/EBITDA multiple
$1,186
EV/EBIT multiple
$1,287
EV/revenue multiple
$1,016
10-year DCF, EBITDA exit
$1,806
5-year DCF, EBITDA exit
$1,728
10-year DCF, revenue exit
$1,745
5-year DCF, revenue exit
$1,651
10-year DCF, growth exit
$1,140
5-year DCF, growth exit
$980
Dividend discount, stable · not used
$4,448
Dividend discount, multi-stage · not used
$5,439
Earnings power value
$914
Growth the price implies
13.8%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
61/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield4.8%
Free-cash-flow yield2.9%
Fair value vs price1.1×
Growth
Strong
85/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)17.6%
EPS growth (3y)33.8%
Growth consistency100%
Profitability
Weak
45/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital17.8%
Operating margin46.0%
Gross profitability22.3%
Financial health
Weak
39/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA6.0×
Interest coverNo interest cost
Dividends
Fair
54/100
Dividend is typical for its sector.
See the numbers →
Dividend yield8.1%
Dividends vs free cash flow275%
Dividend growth106.7%
Quarterly results: last 6 quarters
+12.0%
Mar '25
+9.3%
Jun '25
+11.5%
Sep '25
+13.9%
Dec '25
+18.3%
Mar '26
+22.5%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.7B, diluted EPS $9.39.
Compare with peers
GD General Dynamics Corp70 TXT Textron Inc65 LHX L3harris Technologies,...60 LMT Lockheed Martin Corp55Other Aerospace & Defense companies by X-Ray Score.
SWOT analysis: TransDigm Group INC
Strengthsinside the company
- Return on invested capital is 17.8%, against a median of 12.8% for industry peers.
- Operating margin of 46.0% is well above the 10.3% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 17.6% a year over three years (median 9.9% for industry peers).
- Earnings per share have compounded at 33.8% a year over three years.
Weaknessesinside the company
- Net debt is 6.0x EBITDA, above the 3x level that lenders usually watch.
- Altman Z-score of 1.0 is in the zone linked with financial distress in past studies.
- Dividends (8.1% yield) are larger than free cash flow (payout 275% of it).
Opportunitiesvaluation and setting
- No specific opportunity is visible in our valuation, sector or growth data.
Threatsvaluation and setting
- Revenue growth slowed to 11.2% last year from 17.6% a year over three years.
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Our checks raised: Negative equity; Dividend may be at risk.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TDG with peers and sector
Medians of 11 Aerospace & Defense peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): GE 49, RTX 51, BA 35, LMT 55, GD 70, NOC 49.
| Metric | TDG | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 57 | 51 | 50 |
| Valuation | 61 | 52 | 44 |
| Growth | 85 | 58 | 50 |
| Profitability | 45 | 40 | 51 |
| Financial health | 39 | 55 | 49 |
| Dividends | 54 | 53 | 53 |
Sector leaders: highest X-Ray Score in Industrials
TDG ranks #22 of 81 in Industrials and #4 of 12 in Aerospace & Defense by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TDG
Each factor is rated by where TDG stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 10 Good · 4 Average · 7 Bad of 21
Growth: 3 · 0 · 0
Profitability: 3 · 1 · 0
Financial strength: 2 · 1 · 1
Valuation: 0 · 2 · 2
Cash flow: 2 · 0 · 2
Efficiency: 0 · 0 · 2
| Factor | TDG | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +17.6% | Good beats 91% | +5.6% | – | – |
| Revenue growth, last year | +11.2% | Good beats 87% | +4.5% | +13.2% | ≈ In line |
| EPS growth, 3 years a year | +33.8% | Good beats 90% | +5.7% | – | – |
| Profitability | |||||
| Gross margin | 59.6% | Good beats 92% | 38.0% | 58.3% | ≈ In line |
| Operating margin | 46.0% | Good beats 99% | 17.5% | 44.4% | ≈ In line |
| Net margin | 21.3% | Good beats 90% | 12.8% | 19.7% | ≈ In line |
| Return on invested capital | 17.8% | Average beats 60% | 14.9% | – | – |
| Financial strength | |||||
| Net debt / EBITDA | 6.0x | Bad beats 2% | 1.8x | 5.8x | ≈ In line |
| Interest cover | 50.0x | Good beats 76% | 21.4x | – | – |
| Current ratio | 3.02 | Good beats 93% | 1.25 | 3.96 | ▼ Worse |
| Piotroski F-score | 6 / 9 | Average beats 41% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 30.8x | Average beats 43% | 28.9x | 37.2x | ▲ Better |
| Price / sales | 6.5x | Bad beats 15% | 3.5x | 7.6x | ▲ Better |
| EV / EBITDA | 19.0x | Average beats 48% | 18.5x | 22.8x | ▲ Better |
| Free cash flow yield | 2.9% | Bad beats 21% | 3.8% | 2.4% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 19.3% | Good beats 79% | 13.8% | 18.8% | ≈ In line |
| Cash from operations / net income | 1.03 | Bad beats 7% | 1.39 | 1.09 | ≈ In line |
| Free cash flow growth, 3 years a year | +29.9% | Good beats 79% | +14.5% | – | – |
| Accruals (lower is better) | −0.3% | Bad beats 6% | −3.2% | – | – |
| Efficiency | |||||
| Inventory turnover | 1.6x | Bad beats 1% | 4.0x | 1.7x | ≈ In line |
| Days sales outstanding | 66 days | Bad beats 26% | 57 days | 65 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 8 Good · ● 4 Average · ● 4 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldBad
Risk models
Altman Z''Bad
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioGood
Net debt / EBITDABad
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalAverage
Operating marginGood
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 59/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $4.8B | $5.4B | $6.6B | $7.9B | $8.8B |
| Operating income | $1.7B | $2.2B | $2.9B | $3.5B | $4.2B |
| Net income | $680M | $866M | $1.3B | $1.7B | $2.1B |
| Operating cash flow | $913M | $948M | $1.4B | $2.0B | $2.0B |
| Operating margin | 35.2% | 40.8% | 44.4% | 44.5% | 47.2% |
| Free cash flow | $808M | $829M | $1.2B | $1.9B | $1.8B |
| Diluted EPS | $10.41 | $13.40 | $22.03 | $25.62 | $32.08 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
7 bullish · 4 neutral · 5 bearish
Weekly
Strongly bearish
2 bullish · 1 neutral · 9 bearish
Monthly
Bearish
2 bullish · 1 neutral · 5 bearish
Moving averages (daily)
| SMA 10 | 1,128.0 | Bullish |
| EMA 10 | 1,128.6 | Bullish |
| SMA 20 | 1,112.9 | Bullish |
| EMA 20 | 1,122.8 | Bullish |
| SMA 50 | 1,140.3 | Bullish |
| EMA 50 | 1,143.2 | Bearish |
| SMA 100 | 1,203.5 | Bearish |
| EMA 100 | 1,177.4 | Bearish |
| SMA 200 | 1,233.8 | Bearish |
| EMA 200 | 1,215.0 | Bearish |
Oscillators (daily)
| RSI (14) | 56.45 | Neutral |
| MACD (12, 26) | 1.88 | Bullish |
| Momentum (12) | 3.48 | Bullish |
| Stochastic %K (14) | 79.64 | Neutral |
| Williams %R (14) | -20.36 | Neutral |
| CCI (20) | 81.36 | Neutral |
Pivot points (classic, last session)
S3 1,077.4 | S2 1,091.3 | S1 1,116.5 | Pivot 1,130.5 | R1 1,155.7 | R2 1,169.6 | R3 1,194.8 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.00 USD
Yield on today's price
–
Frequency
None in the last year
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 90.0000 | |
| 75.0000 | |
| 35.0000 | |
| 18.5000 | |
| 32.5000 | |
| 30.0000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold TDG
| ETF | Share of the fund |
|---|---|
| ITA iShares U.S. Aerospace & Defense | 4.59% |
| PPA Invesco Aerospace & Defense | 3.09% |
| DFEN Daily Aerospace & Defense Bull 3X | 2.86% |
| XAR SPDR S&P Aerospace & Defense | 2.83% |
| CGGR Capital Group Growth | 2.02% |
| VOT Vanguard Mid-Cap Growth | 1.64% |
| XLI Industrial Select Sector SPDR | 1.29% |
| RSPN Invesco S&P 500 Equal Weight Industria... | 1.22% |
The eight funds with the largest weight in TDG among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TDG SEC filings
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.