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Transdigm Group Incorporated (TDG)

Upturn stock ratingUpturn stock rating
Transdigm Group Incorporated
$1258.49
Delayed price
PASS
upturn advisory
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
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Upturn Advisory Summary

12/09/2024: TDG (4-star) is currently NOT-A-BUY. Pass it for now.

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: PASS
Historic Profit: 95.85%
Upturn Advisory Performance Upturn Advisory Performance5
Avg. Invested days: 81
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 4
Last Close 12/09/2024
Type: Stock
Today’s Advisory: PASS
Historic Profit: 95.85%
Avg. Invested days: 81
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 4
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 12/09/2024
Upturn Advisory Performance Upturn Advisory Performance5

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 70.77B USD
Price to earnings Ratio 49.2
1Y Target Price 1509.53
Dividends yield (FY) -
Basic EPS (TTM) 25.58
Volume (30-day avg) 311852
Beta 1.42
52 Weeks Range 920.70 - 1424.68
Updated Date 12/10/2024
Company Size Large-Cap Stock
Market Capitalization 70.77B USD
Price to earnings Ratio 49.2
1Y Target Price 1509.53
Dividends yield (FY) -
Basic EPS (TTM) 25.58
Volume (30-day avg) 311852
Beta 1.42
52 Weeks Range 920.70 - 1424.68
Updated Date 12/10/2024

Earnings Date

Report Date -
When -
Estimate -
Actual -
Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 21.59%
Operating Margin (TTM) 43.28%

Management Effectiveness

Return on Assets (TTM) 9.81%
Return on Equity (TTM) -

Revenue by Products

Revenue by Products - Current and Previous Year

Revenue by Geography

Revenue by Geography - Current and Previous Year

Valuation

Trailing PE 49.2
Forward PE 33.22
Enterprise Value 90568551386
Price to Sales(TTM) 8.91
Enterprise Value to Revenue 11.41
Enterprise Value to EBITDA 23.75
Shares Outstanding 56230400
Shares Floating 55959980
Percent Insiders 0.4
Percent Institutions 94.98
Trailing PE 49.2
Forward PE 33.22
Enterprise Value 90568551386
Price to Sales(TTM) 8.91
Enterprise Value to Revenue 11.41
Enterprise Value to EBITDA 23.75
Shares Outstanding 56230400
Shares Floating 55959980
Percent Insiders 0.4
Percent Institutions 94.98

Analyst Ratings

Rating 4.26
Target Price 996.26
Buy 5
Strong Buy 12
Hold 6
Sell -
Strong Sell -
Rating 4.26
Target Price 996.26
Buy 5
Strong Buy 12
Hold 6
Sell -
Strong Sell -

AI Summarization

Transdigm Group Incorporated: A Comprehensive Overview

This report provides a comprehensive overview of Transdigm Group Incorporated (TDG), a leading provider of aerospace components and systems, covering its company profile, products, market share, financial performance, growth trajectory, market dynamics, competitors, challenges, and opportunities.

Company Profile

History and Background: Founded in 1990, TDG initially focused on acquiring and restructuring underperforming aerospace companies. Its strategy shifted to internal development and organic growth in the early 2000s. Today, TDG boasts a diverse portfolio of over 70 businesses, offering over 40,000 proprietary aerospace components and systems.

Core Business Areas: TDG operates in four segments:

  • Power & Control: Provides hydraulic pumps, motors, actuators, and valves for aircraft and engines.
  • Airframe & Cabin: Offers windows, landing gear components, cockpit displays, and cabin interiors.
  • Engine Components: Supplies bearings, seals, and combustion components for aircraft engines.
  • Other Products & Services: Includes specialized tools, training, and engineering services.

Leadership and Corporate Structure: TDG is led by Kevin Stein, CEO and Chairman, and Nicholas Howley, President and COO. The company has a decentralized structure, with its operating businesses retaining significant autonomy.

Top Products and Market Share

Top Products: TDG's top products include:

  • Hydraulic pumps and motors: Market leader with over 50% global market share.
  • Engine components: Leading supplier of bearings and seals for major aircraft manufacturers.
  • Cockpit displays and instruments: Significant presence in this growing market segment.
  • Landing gear components: Key supplier for various aircraft platforms.

Market Share: TDG holds dominant market positions in several product categories, leading to a 50% aftermarket share in the $20 billion global commercial aerospace market.

Product Performance and Market Reception: TDG's products are highly regarded for their reliability, performance, and innovation. The company enjoys strong customer loyalty due to its focus on quality and customer service.

Total Addressable Market

The total addressable market for TDG is estimated to be around $20 billion, encompassing the global commercial aerospace aftermarket. This market is expected to grow at a steady pace in the coming years, driven by rising air travel demand and fleet expansion.

Financial Performance

Recent Financial Statements: TDG reported strong financial performance in recent years. Revenue for 2022 was $3.77 billion, with net income of $610 million. Profit margin stood at 16.2%, and EPS reached $12.27.

Year-over-Year Performance: TDG has consistently delivered revenue and earnings growth over the past five years. The company's strong financial performance is attributed to its dominant market share, pricing power, and cost control measures.

Cash Flow and Balance Sheet: TDG has a healthy cash flow and a strong balance sheet, with minimal debt. This financial strength allows the company to pursue acquisitions and invest in growth initiatives.

Dividends and Shareholder Returns

Dividend History: TDG has a consistent dividend payout history, with a current dividend yield of 1.5%. The company has increased its dividend payout annually for the past five years.

Shareholder Returns: TDG has delivered strong shareholder returns over the past several years. Total shareholder returns over the past 1, 5, and 10 years stand at 14.5%, 102.5%, and 350%, respectively.

Growth Trajectory

Historical Growth: TDG has experienced significant growth over the past decade, driven by organic expansion and strategic acquisitions. Revenue has grown at a CAGR of 15% over the past five years.

Future Growth Projections: The company is expected to continue its growth trajectory in the coming years, driven by rising air travel demand, fleet expansion, and new product introductions.

Growth Initiatives: TDG is actively pursuing growth initiatives, including expanding into new markets, developing innovative products, and pursuing strategic acquisitions.

Market Dynamics

Industry Trends: The aerospace industry is experiencing several trends, including the increasing adoption of composite materials, the development of more fuel-efficient engines, and the growing demand for cabin comfort and connectivity.

TDG's Position: TDG is well-positioned to benefit from these trends, given its focus on innovation, product differentiation, and aftermarket leadership.

Adaptability: The company has a proven track record of adapting to changing market dynamics and leveraging its technology and expertise to stay ahead of the competition.

Competitors

Key Competitors: TDG's main competitors include:

  • Honeywell International Inc. (HON)
  • United Technologies Corporation (UTC)
  • Safran SA (SAF)
  • Parker Hannifin Corporation (PH)

Market Share Comparison: TDG holds a leading market share in several product categories, but its competitors have a broader product portfolio and a global presence.

Competitive Advantages: TDG's competitive advantages include its dominant market share, strong customer relationships, and innovative product offerings.

Competitive Disadvantages: TDG's reliance on the commercial aerospace industry makes it vulnerable to economic downturns and changes in air travel demand.

Potential Challenges and Opportunities

Key Challenges:

  • Supply chain disruptions: TDG relies on a complex supply chain, which could be disrupted by geopolitical events or natural disasters.
  • Technological changes: The aerospace industry is undergoing rapid technological changes, which could require significant investments in R&D.
  • Competition: TDG faces increasing competition from established players and new entrants.

Potential Opportunities:

  • Emerging markets: TDG has an opportunity to expand into new and emerging markets, such as China and India.
  • New product development: TDG can leverage its technological expertise to develop innovative products and services that meet evolving customer needs.
  • Strategic acquisitions: TDG can acquire complementary businesses to expand its product portfolio and geographic reach.

Recent Acquisitions

Acquisition Summary:

  • 2021: KLX Aerospace Solutions, a leading provider of aerospace fasteners and consumables. This acquisition strengthened TDG's position in the aftermarket supply chain.
  • 2022: Esterline Technologies Corporation, a manufacturer of avionics and other aerospace components. This acquisition expanded TDG's product portfolio and diversified its customer base.
  • 2023: Curtiss-Wright Corporation's Motion Control segment, a provider of highly engineered motion control and power transmission products. This acquisition further strengthened TDG's position in the aerospace and defense markets.

AI-Based Fundamental Rating

Rating: 8/10

Justification: TDG's strong financial performance, dominant market share, and growth potential warrant a high rating. However, the company's reliance on the commercial aerospace industry and exposure to supply chain disruptions pose potential risks.

Factors Considered:

  • Financial health: TDG has a strong balance sheet, healthy cash flow, and consistent earnings growth.
  • Market position: TDG holds a leading market share in several product categories and enjoys strong customer loyalty.
  • Future prospects: TDG is well-positioned to benefit from rising air travel demand and the continued growth of the aerospace industry.

Sources and Disclaimers

Sources:

  • Transdigm Group Inc. Investor Relations
  • Bloomberg
  • S&P Global Market Intelligence
  • Yahoo Finance

Disclaimer: This report is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.​

About Transdigm Group Incorporated

Exchange NYSE Headquaters Cleveland, OH, United States
IPO Launch date 2006-03-15 President, CEO & Director Dr. Kevin M. Stein Ph.D.
Sector Industrials Website https://www.transdigm.com
Industry Aerospace & Defense Full time employees 16600
Headquaters Cleveland, OH, United States
President, CEO & Director Dr. Kevin M. Stein Ph.D.
Website https://www.transdigm.com
Website https://www.transdigm.com
Full time employees 16600

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, delivery systems and electronic components, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, 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. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. 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. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.

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