# TransDigm Group Incorporated (TDG) — Stock CV

TransDigm Group Incorporated is a $61.4B industrial company. Revenue grew 16.6% over the last year, it keeps 21¢ of every dollar of sales as profit, and its net debt equals ~13.7 years of free cash flow. It trades at 28.8× earnings — near the lowest of its own history.

> TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft. The firm has three segments: power and control, airframes, and a small nonaviation segment, which serves mostly off-road vehicles and mining equipment.

## Identity

- **Ticker**: TDG
- **Sector**: Industrials
- **Industry**: Aircraft Parts & Auxiliary Equipment, Nec
- **Headquarters**: CLEVELAND, OH
- **Employees**: 16 500
- **Website**: https://www.transdigm.com
- **Market cap**: $61.4B
- **Last price**: $1 111.33
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $10.0B
- **Net income**: $2.13B
- **Free cash flow**: $1.93B
- **Net debt**: $26.4B
- **P/E**: 28.8
- **Revenue growth (YoY)**: 16.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 61 |
| Growth | 82 |
| Profitability | 87 |
| Health | 35 |
| Quality | 87 |
| Moat | 100 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +16.6% YoY
- [x] Profitable — $2.13B TTM
- [x] Profit growing — +33.8% YoY
- [x] Generates cash — $1.93B TTM
- [ ] Debt under control — ~13.7y of cash flow to repay
- [x] Established company — $61.4B market cap
- [x] Not printing shares — -0.3% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 35/100
- [x] Pays a dividend — yield 8.64%
- [x] Valuation not extreme — P/E 28.8

## Experience (career milestones)

- **2026** — TransDigm agreed to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings from PE firm…
- **FY2025** — Best year on record: $2.07B net income
- **2023** — TransDigm acquired Electron Device Business of Communications & Power Industries for $1.39 billion
- **2022** — TransDigm acquired the Montreal-based helicopter mission equipment company, DART Aerospace for…
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $3.17B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2016** — It bought Data Device Corp., a power, networking and electronics company, for $1 billion
- **2010** — TransDigm acquired competing aftermarket aerospace parts company McKechnie Aerospace Holdings for $1.27…
- **2006** — The company acquired more than 60 businesses in its first 25 years of operations, 49 of which were completed after…
- **2003** — TransDigm was acquired from Odyssey Investment Partners by another private equity firm, Warburg Pincus, in 2003 for…
- **1998** — Odyssey Investment Partners, a private equity firm, acquired TransDigm from Kelso & Company
- **1993** — It was founded in 1993, when four industrial aerospace companies were combined by a private equity firm in a…

## Strengths

- High gross margin (59.8%)
- Strongly profitable — 21.3% net margin
- Revenue growing 16.6% year over year
- Strong cash conversion — FCF is 19.3% of revenue

## Watch-outs

- Net debt equals ~13.7 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $4.80B | $680M | $808M |
| FY2022 | $5.43B | $866M | $829M |
| FY2023 | $6.58B | $1.30B | $1.24B |
| FY2024 | $7.94B | $1.71B | $1.88B |
| FY2025 | $8.83B | $2.07B | $1.82B |

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Source: https://stockcv.com/TDG — derived from company filings; may be delayed or incomplete. Information, not investment advice.