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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) Dividends

GoodMoat Analysis

Based on data as of March 26, 2026

Transdigm's exceptionally high dividend yield of 14.78% is a significant red flag for sustainability. The yield is far above the sector average and is not supported by the company's free cash flow generation, indicating the payout is likely not from recurring earnings. For an income-focused value investor, this profile is unfavourable and warrants extreme caution.

Read full analysis
Transdigm's stated dividend yield of 14.78% is extraordinarily high for the industrials sector, where yields typically range from 1-4%. This immediately raises questions about sustainability. The core issue is the disconnect between the dividend and the company's free cash flow. With a Free Cash Flow (FCF) Yield of only 2.8%, the company is generating far less cash than the dividend implies it is paying out. This suggests the dividend is not being funded from sustainable operating cash flow, a critical failure against the Quality Indicators in the framework, which emphasize strong, growing FCF conversion. A sustainable dividend requires a payout ratio (dividends / earnings or FCF) well below 100%. Transdigm's situation indicates a payout ratio likely exceeding 100% of FCF, which is unsustainable. While the company exhibits strong operational metrics like a 47.2% operating margin, its capital structure appears geared towards debt and shareholder returns via special dividends or buybacks rather than a stable, growing regular dividend. For a value investor focused on reliable income, the lack of a clear, FCF-supported payout trajectory and the extreme yield signal make this profile unfavourable. The company may be returning capital effectively for certain investor types, but not for one seeking dividend sustainability. Analysis based on data as of 2024-05-15.

Dividend Overview

Dividend Yield

14.76%

Dividend / Share

$170.97

Key Metrics

Market Cap

$65.24B

P/E Ratio

36.08

Forward P/E

EPS

$32.08

PEG Ratio

-2.75

Book Value

$-171.99

Dividend Yield

14.76%

Profit Margin

22.24%

ROE

Dividend History

Dividend Safety

TDG Dividend Analysis

Transdigm Group Incorporated (TDG) dividend analysis including yield, payout history, and sustainability metrics. The current dividend yield is 14.76%. The annual dividend per share is $170.97.

P/E ratio: 36.08. Profit margin: 22.24%. Free cash flow: $1.82B. This page shows Transdigm Group Incorporated's dividend overview, key metrics, historical payout data, and dividend safety assessment to help income-focused investors evaluate the sustainability of dividend payments.

GoodMoat's dividend analyzer evaluates payout ratios, earnings coverage, and free cash flow coverage to determine how well supported Transdigm Group Incorporated's dividend payments are. Use this analysis alongside the company's financial statements and quality score to make informed income-investing decisions.