Now trading at a price of $735.64, Transdigm has moved -1.4% so far today. In contrast, the S&P 500 index moved -1.0%. Read below for a basic value analysis of Transdigm.
Transdigm shares moved 15.1% over the last 52 weeks, with a high of $772.01 and a low of $499.63. During this time, the stock outperformed the S&P 500 index by 23.0%. As of January 2022, the company's 50-day average price is $729.0. TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The large-cap Industrials company has 14,400 full time employees and is based in Cleveland, OH. Transdigm has not offered any dividends in the last year.
The Company Has a Steady Stream of Positive Cash Flows:
| 2019-09-30 | 2020-09-30 | 2021-09-30 | 2022-09-30 | |
|---|---|---|---|---|
| Revenue (MM) | $5,223 | $5,103 | $4,798 | $5,429 |
| Revenue Growth | n/a | -2.3% | -5.98% | 13.15% |
| Gross Margins | 53.8% | 51.9% | 52.4% | 57.1% |
| Gross Margins Growth | n/a | -3.53% | 0.96% | 8.97% |
| Operating Margins | 38.4% | 35.3% | 36.0% | 41.2% |
| Operating Margins Growth | n/a | -8.07% | 1.98% | 14.44% |
| Net Margins | 17.03% | 13.7% | 14.17% | 15.95% |
| Net Margins Growth | n/a | -19.55% | 3.43% | 12.56% |
| Earnings Per Share | $13.84 | $8.96 | $10.41 | $14.92 |
| EPS Growth | n/a | -35.26% | 16.18% | 43.32% |
| Diluted Shares (MM) | 56 | 57 | 58 | 55 |
| Free Cash Flow (MM) | $914 | $1,108 | $808 | $829 |
| FCF Growth | n/a | 21.24% | -27.08% | 2.6% |
| Capital Expenditures (MM) | -$102 | -$105 | -$105 | -$119 |
| Net Debt / EBITDA | 6.93 | 7.27 | 7.63 | 6.8 |
Transdigm Is Too Expensive at Current Levels:
Compared to the Industrials sector's average of 20.49, Transdigm has a trailing twelve month P/E ratio of 49.3 and, according to its EPS guidance of 26.71, an expected P/E ratio of 27.5. Transdigm's PEG ratio is 1.91 based on its 14% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
Transdigm Is the Subject of Mixed Market Indicators:
17 analysts are following Transdigm and have set target prices ranging from $725.0 to $890.0 per share. On average, they have given the company a rating of buy. At the current price of $735.64, TDG is trading -8.54% away from its average analyst target price of $804.35 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 3.0% of the company's shares are tied to short positions. Institutions own 99.7% of Transdigm's shares, while the insider ownership rate stands at 0.47%. The biggest shareholder is Capital International Investors with a 12% stake in the company worth approximately $4,824,792,876.
