Fundamental analysis · SEC EDGAR · TTM through 27/06/2026

Fundamental analysis of Transdigm Group Inc

TDG · NYSE · Industrial

Fundamental quality

ATTRACTIVE

75

out of 100

Transdigm Group Inc grows profitably: it increases revenue at double digits (12.5% a year) without giving up profitability (net margin 21.3%). On fundamental quality it scores 75 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its financial strength (net debt 5.99× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

TransDigm makes aircraft components almost nobody else makes: proprietary parts flying on virtually every commercial and military aircraft, which only it can replace. Its model, as admired as it is controversial: buy those niche monopolies and raise prices mercilessly.

What will shape its future

  • The aviation aftermarket: every flying plane needs its parts, at its price, for decades.
  • Its deliberately high debt, the engine of its returns and its risk when rates are high.
  • Pentagon and regulator scrutiny of its pricing, the recurring threat to the model.

Breakdown by area

I.Growth
82

EPS growth: 25.5% · Revenue growth: 12.5%

II.Profitability
90

Net margin: 21.3% · ROIC: 17.6%

III.Financial health
53

Net debt/EBITDA: 5.99x · FCF: 19.3%

Source: SEC EDGAR · TTM through 27/06/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 92%
Growthbeats 71%
Cash generationbeats 87%
Less debtbeats 10%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Transdigm Group Inc strengths

  • High gross margin (59.6%), pointing to pricing power.
  • Strong free-cash-flow generation (FCF margin of 19.3%): profit turns into real cash.
  • Growing earnings per share (25.5% annualized).
  • Expanding margins: net margin has risen from 14% to 23% in recent years.

Transdigm Group Inc risks and weaknesses

  • Very high leverage (net debt of 5.99× EBITDA): more exposed to rates and to a rough patch.
  • Its net debt has grown over the period.

Transdigm Group Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20205,1036991,10814,943
20214,79868080815,139
20225,42986682916,520
20236,5851,2981,23616,000
20247,9401,7141,88018,231
20258,8312,0741,81626,607

Between 2020 and 2025, revenue went from $5,103M to $8,831M (+73%) and net income went from $699M to $2,074M (+197%). Meanwhile, its margins have widened (from 14% to 23%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended June 27, 2026, versus the nine months ended June 28, 2025 (SEC filings):

  • Revenue+18.4%
  • Net income+3.8%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0

per share, yearly

7.7% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Transdigm Group Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Transdigm Group Inc a good company to invest in?

In terms of business quality, Transdigm Group Inc scores 75 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Transdigm Group Inc a profitable company?

Very. Transdigm Group Inc shows a net margin of 21.3%, typical of a highly profitable business.

Does Transdigm Group Inc have a lot of debt?

Yes, its leverage is high: net debt is 5.99 times its EBITDA, and it has been rising.

Is Transdigm Group Inc growing?

Its revenue has grown 12.5% annualized in recent years and its earnings per share 25.5%.

Does Transdigm Group Inc generate cash?

Yes. It converts about 19.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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