Stock Analysis
TransDigm Group IncorporatedTDG
P/E 29.58×· 5Y range 28.81–50.77×· bottom 1% of history
Sector: Industrials · Industry: Aircraft Parts & Auxiliary Equipment, Nec
AnalystsBuy27 analystsP/E 29.6× sits at the 1st percentile of its 5.086926762491444-year history.
Cash covers 9% of debt · Q1 2026.
PMP Verdict
Strong business, attractive price
Strengths
- Quality87
- Growth82
Risks
- Financial Health38
High-quality business at an attractive price.
Bull Case
- ✓Revenue CAGR 16.5% — durable top-line growth
- ✓P/E 29.6× at bottom 1% of 5-year history
What's happening with TDG
Profile
Strong moat, earnings quality and growth; financial health lags behind.
How is each axis scored?
- Valuation61/100 · Moderate
- P/E vs own history (1th pct)25/25
- FCF yield (3.1%)12/25
- P/S (6.3x)12/25
- EV/EBIT (19.4x)12/25
- Growth82/100 · Strong
- Revenue CAGR (16.5%)20/25
- Net income CAGR (32.2%)25/25
- EPS CAGR 5Y (32.3%)25/25
- Fwd implied growth (6.8%)12/25
- Profitability70/100 · Moderate
- ROIC (20.9%)20/25
- ROE (n/a)0/25
- Net margin (21.3%)25/25
- Operating margin (46.1%)25/25
- Financial Health38/100 · Weak
- Altman Z (1.07)3/25
- Current ratio (2.75)25/25
- Interest coverage (2.7x)10/25
- Net cash / debt (D/A 112%)0/25
- Quality87/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.77)25/25
- FCF conversion (91%)22/25
- Margin stability (σ 4.4%)25/25
- Moat95/100 · Strong
- ROIC >12% years (8/9 yrs)20/25
- Median gross margin (57.1%)25/25
- FCF-positive years (9/9 yrs)25/25
- Worst-year net margin (worst 13.7%)25/25
Risk Flags
- ⚠Altman Z 1.1 — distress-zone balance sheet
- ⚠Interest coverage 2.7× — thin debt cushion
About TransDigm Group Incorporated
TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft. Show more
The firm has three segments: power and control, airframes, and a small nonaviation segment, which serves mostly off-road vehicles and mining equipment. It is an acquisitive holding company focused on buying up smaller firms that make proprietary aerospace products with substantial aftermarket revenue. TransDigm regularly employs financial leverage to amplify its operating results.
Headquarters: CLEVELAND, OH · Employees: 16,500 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
61BP/E (TTM)29.6xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 28.8x–50.8x · lowest in history
P/FCF32.3xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.1%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.8%–3.2% · 98th pct
P/S (TTM)6.29xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 5.7x–11.0x · 3rd pct
EV/EBIT19.4xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 19.1x–29.4x · lowest in history
EV/Sales9.3xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E27.7xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B RatioNeg. EquityC
Grade C: BuybacksPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio3.63D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield8.50%C
Grade C: HighTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio501.6%D
Grade D: UnsustainableDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
70B+ROIC20.9%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROENeg. EquityC
Grade C: BuybacksReturn on Equity. Neg. equity = heavy buybacks
ROA8.6%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin21.3%A
Grade A: HighNet Income / Revenue
Operating Margin46.1%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin59.6%A
Grade A: PremiumGross Profit / Revenue
FCF Margin19.3%A
Grade A: HighFCF / Revenue
True FCF Margin17.7%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
82ARevenue CAGR16.5%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR32.2%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)32.3%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth6.8%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income7.1%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue1.5%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
38DAltman Z-Score1.07D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.75xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio1.92xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage2.7xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt Repayment13.8yD
Grade D: SlowYears to repay net debt via FCF
Net Debt/EBIT5.8xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity—
Debt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.09xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
87APiotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.77A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion90.5%A
Grade A: StrongFCF / Net Income
Margin Stability4.4%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue2.7%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.40xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Krasik Irina Igorevna Filed | Krasik Irina Igorevna | Grant / award | +13 | |
CRONIN JANE M. Filed | CRONIN JANE M. | Grant / award | +34 | |
Santana Michele Filed | Santana Michele | Grant / award | +34 | |
Palmer Peter Filed | Palmer Peter | Grant / award | +34 | |
Howley W Nicholas Filed | Howley W Nicholas | Grant / award | +126 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Graff Michael Filed | Graff Michael | Grant / award | +34 | |
BARR DAVID Filed | BARR DAVID | Grant / award | +46 | |
SMALL ROBERT J Filed | SMALL ROBERT J | Grant / award | +52 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
95A+ROIC >12% Years8/9 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)57.1%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years9/9 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor13.7%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$38.52
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$50.17
Cash & short-term investments per share (Finnhub)
Book Value / Share$15.27
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$29.20B
Total debt obligations (short + long term)
Cash & Equiv.$2.53B
Cash and short-term investments
Net Debt$26.67B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$-9.27B
Shareholders' equity (book value)
Asset / Liability0.72xD
Grade D: RiskyTotal Assets / Total Liabilities
Market
Market Cap$62.92B
Current Market Capitalization
Beta0.97B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: TransDigm Group Incorporated (TDG)
Piotroski F-Score of 6/9 indicates mixed fundamentals for TransDigm Group Incorporated. Altman Z-Score of 1.07 is below the 1.81 distress threshold — an elevated financial-risk flag. Beneish M-Score of -2.77 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 16% annually, with net income growing about 32% per year — a strong growth profile.
- TransDigm Group Incorporated converts about 19% of revenue into free cash flow — strong cash generation.
- Takes ~13.8 years to repay net debt from free cash flow.
- The stock currently yields 8.5% in dividends.
See how TDG ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all TDG moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | Regular | 1,134.48 | +2.23% | 2.05 |
| Sep 21 | Regular | 1,110.59 | +2.26% | 2.51 |
| Sep 21 | After-hours | 1,109.65 | +2.17% | 2.43 |
Frequently Asked Questions about TDG
What is the current TransDigm Group Incorporated (TDG) stock price?
TDG is trading at $1139.34 at the last market close, up 0.45% on the session. PreMarketPrice tracks TDG pre-market, intraday and after-hours prices.
Is TDG stock a buy right now?
PreMarketPrice's quantitative model rates TransDigm Group Incorporated's financial health at 38/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is TDG stock overvalued?
TransDigm Group Incorporated trades at a trailing P/E of 29.6 and our valuation score rates it 61/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does TransDigm Group Incorporated report earnings?
No confirmed earnings date is currently scheduled for TDG. The Earnings section lists recent reports and updates as dates are announced.
What sector does TransDigm Group Incorporated operate in?
TransDigm Group Incorporated operates in the Industrials sector, within the Aircraft Parts & Auxiliary Equipment, Nec industry. The Related Stocks section lists sector peers for comparison.
What does TransDigm Group Incorporated do?
TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft.
About TransDigm Group Incorporated (TDG) Stock
TransDigm Group Incorporated (TDG) is a US-listed stock operating in the Industrials sector, specifically the Aircraft Parts & Auxiliary Equipment, Nec industry. As of the latest update, TransDigm Group Incorporated is trading at $1139.34, up 0.45% on the day with a market capitalization of $62.9 billion. The financial health score for TDG is 38/100, which indicates weak financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for TDG stock.
TDG Stock Analysis & Key Metrics
On PreMarketPrice, you can track TransDigm Group Incorporated (TDG) across multiple dimensions:
- Pre-market price & movement: Real-time TDG stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for TDG with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for TransDigm Group Incorporated across multiple reporting periods.
- Financial health score: A composite score of 38/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for TDG.
- Sector peers: Compare TDG against 5 other industrials stocks on key financial metrics.
Is TDG a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate TransDigm Group Incorporated (TDG) as an investment. The financial health score of 38/100 suggests weak financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.TransDigm Group Incorporated (TDG) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.