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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) Financial Statements

GoodMoat Analysis

Based on data as of March 26, 2026

Transdigm exhibits exceptionally strong profitability and cash generation, with an operating margin of 47.2% and a profit margin of 22.2%. However, its financial quality is heavily offset by a highly leveraged balance structure and a very low free cash flow yield of 2.8%, which is unfavourable for a value investor.

Read full analysis
Transdigm's revenue growth of 13.9% YoY is solid, but the standout feature is its extraordinary profitability. An operating margin of 47.2% and a profit margin of 22.2% indicate significant pricing power and a highly efficient cost structure, aligning with the framework's emphasis on high and expanding margins. This strong operational performance is a key quality indicator. However, the free cash flow picture is less compelling. A FCF yield of 2.8% is low, falling short of the framework's favourable threshold of >10-15% FCF margin. This suggests the company's impressive accounting profits are not translating as powerfully into cash available to shareholders. The balance sheet is a critical concern. While specific debt-to-equity is not provided, the framework emphasizes a substantial net cash position and low debt (Debt/EBITDA < 1.0x) as a sign of health. Transdigm is famously known for a leveraged capital structure, which contradicts this quality indicator and introduces financial risk. The extremely high dividend yield of 14.78% is atypical and likely a data artifact or a special dividend, not a sustainable payout, and should not be interpreted as a positive income signal. Overall, the company shows high-quality operations but is burdened by leverage and modest cash generation relative to its valuation, making the financial profile a mix of strength and significant risk. Analysis based on data as of 2024-05-15.

TDG Financial Data

EBITDA$4.63B
Revenue (TTM)$9.11B
Gross Profit (TTM)$5.43B
Gross Margin
Operating Margin47.16%
ROE
ROA8.84%
Debt/Equity
Current Ratio3.21
FCF$1.82B
FCF Yield2.78%
Piotroski F-Score
Rev/Share (TTM)$161.74
50-Day MA$1235.29
200-Day MA$1314.99
Shares Outstanding0.06B

TDG Computed Insights

FCF$1.82B
FCF Growth Rate12.14%
EPS Growth (CAGR)15.14%
WACC10.00%

Income Statement

Balance Sheet

Cash Flow Statement

TDG Financial Statements & Data

Transdigm Group Incorporated (TDG) financial data including income statement, balance sheet, and cash flow statement. This page provides a comprehensive view of Transdigm Group Incorporated's financial performance and position as a Industrials company.

Trailing twelve-month (TTM) revenue is $9.11B. Gross profit (TTM) is $5.43B. EBITDA is $4.63B. Earnings per share (EPS) is $32.08. The P/E ratio is 36.08. Market capitalization is $65.24B.

Free cash flow (FCF) is $1.82B. FCF growth rate is 12.14%. EPS growth CAGR is 15.14%. Weighted average cost of capital (WACC) is 10.00%.

Historical revenue data covers 7 years from FY19 to FY25. Net income history spans 7 years. Free cash flow and capital expenditure data spans 7 years. GoodMoat displays interactive charts for revenue, net income, FCF vs CAPEX, and cash-to-debt ratios to help investors identify financial trends.

Use Transdigm Group Incorporated's financial data to assess the company's earnings quality, balance sheet health, and cash generation. Compare key metrics across periods to identify trends before making investment decisions with GoodMoat's valuation tools.