TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft. 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 a $61.4B industrial company. Revenue grew 16.6% over the last year, it keeps 21¢ of every dollar of sales as profit, and its net debt equals ~13.7 years of free cash flow. It trades at 28.8× earnings — near the lowest of its own history.
- Website
- transdigm.com
- Location
- Cleveland, OH
- Employees
- 16 500
- Sector
- Industrials
- Founded
- 1993
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong growth, profitability, quality and moat; Health lags behind.
Valuation61
- P/E vs own history0th pct · 25/25
- FCF yield3.1% · 12/25
- P/S6.1x · 12/25
- EV/EBITDA19.0x · 12/25
Growth82
- Revenue CAGR16.5% · 20/25
- Net income CAGR32.2% · 25/25
- EPS CAGR ~5Y32.3% · 25/25
- Fwd implied growth6.9% · 12/25
Profitability87
- ROIC12.4% · 12/25
- ROE37.1% · 25/25
- Net margin21.3% · 25/25
- Operating margin46.0% · 25/25
Health35
- Altman Zn/a · 0/25
- Current ratio3.02 · 25/25
- Interest coverage2.7x · 10/25
- Net cash / debtD/A 115% · 0/25
Quality87
- Piotroski F6/9 · 15/25
- Beneish M-2.77 · 25/25
- FCF conversion91% · 22/25
- Margin stabilityσ 4.4% · 25/25
Moat100
- ROIC >12% years9/10 yrs · 25/25
- Median gross margin56.9% · 25/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 13.7% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2026AcquisitionTransDigm agreed to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings from PE firm…
- FY2025FinancialBest year on record$2.07B net income
- 2023AcquisitionTransDigm acquired Electron Device Business of Communications & Power Industries for $1.39 billion
- 2022AcquisitionTransDigm acquired the Montreal-based helicopter mission equipment company, DART Aerospace for…
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$3.17B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2016AcquisitionIt bought Data Device Corp., a power, networking and electronics company, for $1 billion
- 2010AcquisitionTransDigm acquired competing aftermarket aerospace parts company McKechnie Aerospace Holdings for $1.27…
- 2006IPOThe company acquired more than 60 businesses in its first 25 years of operations, 49 of which were completed after…
- 2003AcquisitionTransDigm was acquired from Odyssey Investment Partners by another private equity firm, Warburg Pincus, in 2003 for…
- 1998AcquisitionOdyssey Investment Partners, a private equity firm, acquired TransDigm from Kelso & Company
- 1993FoundedIt was founded in 1993, when four industrial aerospace companies were combined by a private equity firm in a…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (59.8%)
- Strongly profitable — 21.3% net margin
- Revenue growing 16.6% year over year
- Strong cash conversion — FCF is 19.3% of revenue
Watch-outs
- Net debt equals ~13.7 years of free cash flow
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+16.6% YoY
- Profitable — makes more than it spends$2.13B TTM
- Profit growing — earnings are higher than last year+33.8% YoY
- Generates cash — cash left after running and investing$1.93B TTM
- Debt under control — could handle its obligations~13.7y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$61.4B market cap
- Not printing shares — share count not ballooning — you keep your slice-0.3% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 35/100
- Pays a dividend — returns cash to shareholdersyield 8.64%
- Valuation not extreme — price not wildly above earningsP/E 28.8
Peer comparisonTransDigm Group Incorporated vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| TDG this company | $61.4B | 28.8 | +16.6% | 21.3% | Mixed |
| LRCX Lam Research Corp | $399.2B | 54.9 | +26.0% | 31.3% | Strong |
| CAT Caterpillar Inc. | $368.0B | 33.9 | +18.4% | 14.5% | Solid |
| RTX RTX Corporation | $251.3B | 32.4 | +11.8% | 8.3% | Strained |
| DE Deere & Company | $167.7B | 34.4 | +8.3% | 10.2% | Solid |
| ETN Eaton Corporation, plc | $167.2B | 43.6 | +15.5% | 12.8% | Mixed |
| UNP Union Pacific Corp. | $166.8B | 22.6 | +4.2% | 28.8% | Strained |
Head-to-head: TDG vs LRCX · TDG vs CAT · TDG vs RTX
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/TDG
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of TDG on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $1 111.33 · market cap $61.4B.