Stock · TDG · Industrials

Transdigm Group Incorporated

United States · Large Cap · listed since 2006 · Revenue 12 mo. $10B

Price as of 11/06/2026

StockScorer score
4.5
of 10 5 of 11 points Low Match To the score
Price
$1,197.01
1 Y −15.5%
Market cap
$63.3B
Phase
Growth
revenue growing, core business profitable
Revenue +17.6% a year (3 years)EBIT margin 47.6%Payout above 200% of operating cash flow

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally.

moreless

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers 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, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, cargo loading and handling systems, delivery systems, and electronic components. Its Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, parachutes, specialized flight, wind tunnel and jet engine testing services and equipment, and testing and instrumentation solutions, as well as engineered audio, radio, and antenna systems. The Non-Aviation segment offers seat belts and safety restraints; mechanical/electromechanical actuators and controls; hydraulic/electromechanical actuators and fuel valves; refueling systems; and turbine controls. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots; airframe manufacturers, cabin system and subsystem suppliers, airlines, and third party maintenance suppliers; and off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers, as well as manufacturers of heavy equipment. The company was formerly known as TD Holding Corporation and changed its name to TransDigm Group Incorporated in 2006. The company was founded in 1993 and is headquartered in Cleveland, Ohio.

Original text from the data provider

Summary

Transdigm Group Incorporated is around the middle of the Industrials sector overall

44.3 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 15.9% FCF growth a year: more than over the last 10 years, less than over the last 5 years.

If free cash flow stays at €1.6B (2025), it supports €18.1B. The remaining €38.7B of the market value assume it grows 15.9% a year for 10 years and not at all afterwards.

Required FCF growth per year

15.9%

no growth afterwards

Market value breakdown€56.8B market value, price as of 11/06/2026

€18.1B without growth
€38.7B priced-in growth
  • 5 yrs achieved 21.6%
  • 10 yrs achieved 13.4%
  • priced in 15.9%

Valuation against its own history

Price to operating cash flow 31.3×, below its usual range.

Middle half of 20 quarters: 34.7× to 40.6×, median 37.9×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

3 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • High, stable gross margin median 54.9%, range 7.5 pp (10 years)
  • Low capital needs capex median 2.1% of revenue (10 years)
  • Steady FCF margin at least 15.3%, range 9.6 pp (10 years)

What speaks against it

with respect to the priced-in expectation

  • Dividend above free cash flow payout 272.5% of FCF

Since the last quarter

Q1 → Q2 2026

Mostly better than the previous quarter: 2 of 2 changes for the better.

  • Revenue, 12 mo.$9.5B → $10.0B+5.3%better
  • Shares outstanding58.2M → 57.4M−1.4%better

5 more unchanged: FCF, 12 mo., Gross margin, EBIT margin, FCF margin, Net debt

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability74.7above the middleEarns more than the sector: EBIT margin 47.55%, sector 11.28%.
MetricStockSector medianPosition in sector
Return on equity−24.26%13.10%Rank 1
Return on capital (Greenblatt)65.53%19.33%Rank 89
EBIT margin47.55%11.28%Rank 99
FCF margin20.56%8.50%Rank 92
Gross margin57.98%28.98%Rank 92
Growth68.7above the middleGrows faster than the sector: Earnings growth, 3 years per year 33.79%, sector 8.01%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year11.23%5.15%Rank 83
Earnings growth, 3 years per year33.79%8.01%Rank 85
Earnings growth, 5 years per year23.91%12.89%Rank 78
Sustainable growth (ROE × retained earnings)2.51%4.02%Rank 30
Valuation25.3below the middleValued higher than the sector: EV/sales 10.25, sector 2.08.
MetricStockSector medianPosition in sector
Earnings yield2.98%4.42%Rank 23
FCF yield2.87%3.98%Rank 32
EV/saleslower is better10.252.08Rank 3
EV/EBITlower is better21.5519.47Rank 43
Momentum44.7around the middleShare price moving about like the sector.
MetricStockSector medianPosition in sector
Share price, 1 year−15.47%−0.01%Rank 23
Share price, 6 months−1.00%−1.43%Rank 51
Share price, 3 months2.83%0.53%Rank 58
Distance from 52-week high−17.45%−16.36%Rank 47
Quality27.9below the middleQuality below the sector: Change in share count 0.69%, sector −0.44%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better2.60%1.39%Rank 38
Change in share countlower is better0.69%−0.44%Rank 11
Dividend streak in years35Rank 42
Price reaction to results, market-adjusted−2.46%0.27%Rank 21
Balance sheet & risk24.8below the middleMore risk than the sector: Equity ratio −42.28%, sector 39.65%.
MetricStockSector medianPosition in sector
Equity ratio−42.28%39.65%Rank 0
Net debt/EBITDAlower is better5.961.38Rank 5
Debt to equitylower is betterdoes not count towards the rank−3.400.61
Volatility, 1 yearlower is better27.67%32.95%Rank 69

Ten years in figures

Revenue from $3.2B (2016) to $8.8B (2025), 12.1% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCFSharesNet debt, $B
20163.241.1%$624.9M56.2M8.6
20173.542.5%$717.7M55.5M11.1
20183.844.0%$948.8M55.6M10.8
20195.238.6%$913.9M56.3M15.4
20205.134.3%$1.1B57.3M15.3
20214.835.2%$808.0M58.4M15.2
20225.440.8%$829.0M58.2M16.8
20236.644.4%$1.2B57.2M16.1
20247.944.5%$1.9B57.8M18.6
20258.847.6%$1.8B58.2M27.2
4.5 / 10Low MatchStockScorer score5 of 11 points

3 of 7 StockScorer Score rules met · How the score is built

Transdigm Group Incorporated mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 67%This stock · Growth: 50%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Transdigm Group Incorporated's score is built

Transdigm Group Incorporated is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

3 of 7 rules met

5 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector mediannot met0 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Transdigm Group Incorporated stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Magic Formula: Value + Quality
  • Growth Momentum (CAN SLIM principle)
  • Trending Value: Value + Momentum
  • Defensive: Low Volatility
  • High-Growth / Rule of 40
  • PEG Strategy (inspired by Peter Lynch)
  • Undervalued Stocks: Multi-Factor Check
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Altman Z-Score: Stress Test
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • Levermann Strategy (13 Criteria)

Transdigm Group Incorporated key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Transdigm Group Incorporated.

MetricStockSector
P/E ratio33.622.5
P/B ratio−7.32.9
Return on equity (ROE)−24.3%13.1%
Equity ratio−42.3%39.7%
Debt-to-equity (D/E)−3.400.61
Dividend yield7.8%2.0%

Similar stocks in Industrials

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
TDGTransdigm Group Incorporatedthis page
NOCNorthrop Grumman CorporationLow4.5
HONAHoneywell Aerospace IncHigh6.4
HWMHowmet Aerospace IncMedium5.5
LHXL3Harris Technologies Inclocked
HEIHeico Corporationlocked

Frequently asked questions about Transdigm Group Incorporated stock

How does Transdigm Group Incorporated stock (TDG) score in the StockScorer model?
Transdigm Group Incorporated stock reaches a StockScorer score of 4.5 out of 10, which is a low match with the rule-based strategies. 3 out of 7 flagship profile rules are met.
What is Transdigm Group Incorporated's P/E ratio?
Transdigm Group Incorporated's P/E ratio is 33.6. The Industrials sector median is 22.5.
What sector is Transdigm Group Incorporated in?
Transdigm Group Incorporated is assigned to the Industrials sector. Its rank within the sector is 44.3 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

Unlock the full analysis for free

Signed up in 30 seconds, free.

  • More metrics: FCF margin, cash flow yield and more
  • Full peer comparison within the same sector
  • See the match across all strategies in detail
  • Apply your own scoring profile to any stock
  • Add the stock to your watchlist and track score changes
  • Daily updated ratings, rule-based and transparent

Learn more about the metrics in the metrics glossary or all rated stocks in the stock overview.

How StockScorer rates every stock is explained on the methodology page.