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Transdigm Group Incorporated

Exchange: NYSESector: IndustrialsIndustry: Aerospace & Defense

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.

Did you know?

Profit margin of 22.2% — that's well above average.

Current Price

$1158.36

+0.89%

GoodMoat Value

$795.57

31.3% overvalued
Profile
Valuation (TTM)
Market Cap$65.24B
P/E36.08
EV$92.45B
P/B
Shares Out56.32M
P/Sales7.16
Revenue$9.11B
EV/EBITDA20.04

Transdigm Group Incorporated (TDG) Quality Analysis

GoodMoat Analysis

Based on data as of March 26, 2026

Transdigm exhibits exceptional operational profitability with a 47.2% operating margin and 22.2% profit margin, but its quality profile is mixed for a value investor. While margins are strong, key indicators like free cash flow conversion and balance sheet strength raise concerns when compared to the framework's benchmarks.

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Transdigm's profitability metrics are exceptionally high. Its operating margin of 47.2% and profit margin of 22.2% indicate a highly efficient business model with significant pricing power. Revenue growth of 13.9% YoY is healthy for a mature industrial company. However, when assessed against the GoodMoat Quality Indicators, the profile is mixed. The high margins align with a 'Strong' rating for gross and operating leverage. The primary concerns lie in capital efficiency and financial structure. The provided Free Cash Flow (FCF) Yield of 2.8% is below the framework's >10-15% FCF margin threshold, suggesting low conversion of earnings to cash for shareholders. The dividend yield of 14.78% is anomalous and likely a data error or special distribution, not a sustainable payout. A major red flag is the lack of a Debt/Equity ratio, which, given Transdigm's well-known leveraged capital structure, suggests a balance sheet that would not meet the framework's 'Strong' rating for a substantial net cash position. This heavy debt use can artificially boost Return on Equity (ROE), which is listed as N/A. Compared to typical aerospace & defense peers, Transdigm's margins are superior, but this comes with a higher-risk financial model. Its competitive position, per Moat Identification, is likely driven by high switching costs and niche dominance for its proprietary aerospace components, which supports its pricing power but is counterbalanced by the leverage risk.

TDG GoodMoat Verdict

Full signal breakdown coming soon. Use the X-Ray tool for a detailed analysis.

TDG Profitability

Profitability trend analysis coming soon

TDG Growth

Growth trend analysis coming soon

TDG Financial Health

Financial health indicators coming soon

TDG Quality & Fundamental Analysis

Transdigm Group Incorporated (TDG) is a Industrials company in the Aerospace & Defense industry, listed on NYSE. This quality analysis page evaluates Transdigm Group Incorporated's financial health using the Piotroski F-Score methodology, profitability ratios, growth trajectory, and balance sheet strength.

Transdigm Group Incorporated has a Piotroski F-Score of N/A out of 9, measuring profitability, leverage, and operating efficiency. The company operates with a profit margin of 22.24%. Return on assets (ROA) stands at 8.84%.

with a current ratio of 3.21. Operating margin is 47.16%.

GoodMoat's quality analysis uses AI-powered insights to evaluate whether Transdigm Group Incorporated is a fundamentally sound investment. The GoodMoat Verdict synthesizes profitability, growth, and financial health scores into a clear investment quality rating. Use these metrics alongside valuation tools like the DCF calculator and fair value models to make informed investment decisions.