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Transdigm Group Incorporated (TDG) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Industrials•Aerospace & Defense
C
AverageMetricSide Score: 58/100
ProfitabilityProfit20/30
GrowthGrowth17/25
Balance SheetBalance8/25
Cash QualityCash13/20
Price & Volume
Market Cap $78.48B

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.

Moat Signals

Competitive analysis based on 63 quarters of fundamental data

Pricing Power

Strong Moat

Operating margins are stable at ~46.2%, suggesting durable pricing power and cost discipline.

Competitive Advantage

Moderate Moat

Limited ROE data for a reliable assessment.

Cash Generation

Moderate Moat

8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~25.0% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 63 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~46.5% — no sign of cost or pricing stress.

Earnings Quality

Healthy

FCF covers net income by 1.0x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

Limited debt-to-equity data available.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$9.50B
13.3%
Q. Revenue
$2.54B
TTM EBITDA
$-2.06B
146.1%
TTM Op. Income
$4.42B
15.0%
Q. Op. Income
$1.18B
TTM Net Income
$2.08B
9.5%
Q. Net Income
$535.00M
EPS
$9.2
Shares Out.
$58.20M
0.2%
$9.50B in TTM revenue grew 13.3% YoY, reaching $2.54B last quarter. TTM EBITDA of $-2.06B and TTM operating income of $4.42B shows growth is flowing through. Net income of $2.08B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
59.4%
0.2%
EBITDA Margin
1.1%
Op. Margin
46.3%
0.5%
Net Margin
21.0%
5.6%
Op. margin of 46.3% is up 0.2% YoY — cost efficiency is improving. Net margin at 21.0% and gross margin of 59.4% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
37.7x
P/S Ratio
8.3x
P/B Ratio
N/A
At 37.7x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 8.3x and P/B of 0.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$25.44B
Cash
$3.88B
Long-Term Debt
$31.28B
Book Value
$-9.40B
D/E Ratio
N/A
Debt/EBITDA
1078.6

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$135.00M
Free Cash Flow
$64.00M
30.4%
FCF Margin
0.7%
FCF / Net Income
0.1
FCF of $64.00M on $135.00M in operating cash flow. The FCF / Net Income ratio of 0.0x indicates partial cash conversion — earnings quality needs attention.

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