TDGTDG
US • —
$1332.34
P/E
37.23
PEG
4.05
FCF Yield
—
Rev Growth YoY
+13.3% YoY
Gross Margin
59.8%
Health Score
5/10
D/E Ratio
2.97
Confidence
MEDIUM
Business Snapshot
TransDigm Group designs, produces, and supplies highly engineered aerospace components, systems, and subsystems for use on commercial and military aircraft. The company operates in the aerospace and defense market, holding a competitive position as a niche leader in proprietary, often sole-source parts that are essential for aircraft operation. With no market cap or revenue figure available in this dataset, the financial scale cannot be precisely determined here. The company is defined by its business model of acquiring and extracting value from businesses that hold dominant positions in highly regulated and difficult-to-replicate aftermarket parts, creating significant pricing power.
Financial Health
Gross margin stands at a robust 59.8%, and net margin is a healthy 21.9%, indicating the company retains a significant portion of revenue as profit after all expenses. However, the balance sheet is notably stretched, with a Debt/Equity ratio of 2.97x, suggesting high leverage, though this is partially offset by a highly liquid current ratio of 3.21x...
Risk Assessment
- VALUATION — P/E of 37.23x trades at a significant premium to the sector average of 22x, demanding exceptional future performance to justify the price.
- DEBT / LIQUIDITY — Debt/equity of 2.97x signifies a highly leveraged capital structure, increasing financial risk and reducing flexibility.
- INSIDER SELLING — Insiders have sold 8 shares versus 0 buys over the last 90 days, a net-selling pattern that can signal a lack of confidence.
- EARNINGS QUALITY — While the company beat estimates in 3 of the last 4 quarters, the single miss indicates a not-perfect track record.
- GROWTH DYNAMICS — Earnings growth of 9.2% lags behind revenue growth of 13.3%, suggesting potential margin compression or rising costs.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at a robust 59.8%, and net margin is a healthy 21.9%, indicating the company retains a significant portion of revenue as profit after all expenses. However, the balance sheet is notably stretched, with a Debt/Equity ratio of 2.97x, suggesting high leverage, though this is partially offset by a highly liquid current ratio of 3.21x. Free cash flow figures are not provided, making it impossible to assess whether the company's earnings are converting into cash or if it is burning through capital. The combination of strong margins and high leverage creates a mixed picture, where the company's profitability supports its debt obligations but leaves limited room for error or financial flexibility without clear cash flow data.
- VALUATION — P/E of 37.23x trades at a significant premium to the sector average of 22x, demanding exceptional future performance to justify the price. - DEBT / LIQUIDITY — Debt/equity of 2.97x signifies a highly leveraged capital structure, increasing financial risk and reducing flexibility. - INSIDER SELLING — Insiders have sold 8 shares versus 0 buys over the last 90 days, a net-selling pattern that can signal a lack of confidence. - EARNINGS QUALITY — While the company beat estimates in 3 of the last 4 quarters, the single miss indicates a not-perfect track record. - GROWTH DYNAMICS — Earnings growth of 9.2% lags behind revenue growth of 13.3%, suggesting potential margin compression or rising costs. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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