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Upturn AI Summary - About
Transdigm Group Incorporated(TDG)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for TDG
11/10/2026: TDG (1-star) has a low Upturn Star Rating. Not recommended to BUY.
TransDigm Group Incorporated is a leading provider of highly engineered, proprietary aerospace components, primarily focusing on products essential for aircraft operation and maintenance. The company is well-known for its disciplined 'buy-and-build' strategy, which has generated significant cash flows and historically strong margins. Its primary investment story centers on the durable, high-margin nature of its aftermarket business as global aviation demand grows. However, investors must consider risks including high leverage, significant regulatory scrutiny regarding pricing, and potential production slowdowns from major OEMs. The stock may best suit growth-oriented investors who can tolerate volatility and monitor the company's ability to successfully integrate new acquisitions.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company's ability to consistently scale through high-margin acquisitions makes it attractive for long-term growth portfolios. |
| Momentum investor | Strong fit while signal remains positive | Strong historical stock performance and consistent margin expansion often attract momentum-based interest. |
| Value investor | Weak fit | The stock frequently trades at a premium valuation multiple due to its unique business model and high cash flow margins. |
| Dividend investor | Weak fit | The company prefers capital reinvestment and share repurchases over consistent dividend income. |
| Low-risk investor | Mixed fit | While the business has defensive qualities, the high debt load and regulatory risks introduce meaningful volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | The stock often reacts sharply to changes in broader aerospace sentiment and interest rate shifts. |
| Valuation risk | High | Investors pay a high multiple for the business quality, leaving little room for error in growth execution. |
| Competition risk (niche component focus) | Medium | While direct competition is limited, customers and regulators exert significant pressure on sole-source pricing. |
| Business quality | Strong | The proprietary nature of the products and the aftermarket dependency create a durable and highly profitable franchise. |
| Dividend income | Low | Dividend-seeking investors will likely find better alternatives in the industrial sector. |
| Execution risk | Medium / high | Continuous reliance on M&A integration success is critical to maintaining the company's long-term growth trajectory. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit 3.34% | Avg. Invested days 47 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/10/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 67.37B USD | Price to earnings Ratio 36.97 | 1Y Target Price 1414.3 |
Price to earnings Ratio 36.97 | 1Y Target Price 1414.3 | ||
Volume (30-day avg) 376.5K shares | Beta 0.95 | 52 Weeks Range 1071.25 - 1463.03 | Updated Date 11/10/2026 |
52 Weeks Range 1071.25 - 1463.03 | Updated Date 11/10/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 32.97 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Aftermarket Sales | Replacement parts for components that require frequent maintenance throughout the aircraft's lifecycle. | This is the company's 'razor-and-blade' model, providing recurring, high-margin revenue as planes continue to fly. |
| Original Equipment Manufacturer (OEM) Sales | Supplying proprietary parts for new aircraft production by major manufacturers like Boeing and Airbus. | These sales ensure TransDigm's parts are 'designed-in' to new planes, guaranteeing future aftermarket demand. |
| Defense & Military | Specialized components for military aircraft, helicopters, and defense systems. | This segment provides a stable revenue stream that is less sensitive to commercial travel fluctuations. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-11-10 | When Before Market | Estimate 12.21 | Actual 12.44 |
Profitability
Profit Margin 21.28% | Operating Margin (TTM) 46.01% |
Management Effectiveness
Return on Assets (TTM) 11.82% | Return on Equity (TTM) - |
Valuation
Trailing PE 36.97 | Forward PE 25 | Enterprise Value 96.88B | Price to Sales(TTM) 6.73 |
Enterprise Value 96.88B | Price to Sales(TTM) 6.73 | ||
Enterprise Value to Revenue 9.68 | Enterprise Value to EBITDA 19.18 | Shares Outstanding 55.28M | Shares Floating 54.99M |
Shares Outstanding 55.28M | Shares Floating 54.99M | ||
Percent Insiders 0.41 | Percent Institutions 97.67 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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