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TransDigm Group

DB:T7D
Snowflake Description

Reasonable growth potential with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
T7D
DB
$28B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The last earnings update was 66 days ago. More info.


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T7D Share Price and Events
7 Day Returns
1%
DB:T7D
0.8%
Europe Aerospace & Defense
2.5%
DE Market
1 Year Returns
64%
DB:T7D
11.7%
Europe Aerospace & Defense
2.6%
DE Market
T7D Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TransDigm Group (T7D) 1% 2.4% 6.6% 64% 82.6% 248.5%
Europe Aerospace & Defense 0.8% -2.9% 0.9% 11.7% 67.1% 114.9%
DE Market 2.5% 0.2% 1% 2.6% 7.8% 23.7%
1 Year Return vs Industry and Market
  • T7D outperformed the Aerospace & Defense industry which returned 11.7% over the past year.
  • T7D outperformed the Market in Germany which returned 2.6% over the past year.
Price Volatility
T7D
Industry
5yr Volatility vs Market

T7D Value

 Is TransDigm Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TransDigm Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TransDigm Group.

DB:T7D Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:T7D
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 21%) (60.87%))
1.187
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.187 * 5.96%)
7.3%

Discounted Cash Flow Calculation for DB:T7D using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TransDigm Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:T7D DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.3%)
2020 1,339.19 Analyst x10 1,248.04
2021 1,494.63 Analyst x8 1,298.09
2022 1,740.33 Analyst x3 1,408.61
2023 1,995.50 Analyst x2 1,505.21
2024 2,172.52 Est @ 8.87% 1,527.20
2025 2,308.91 Est @ 6.28% 1,512.60
2026 2,411.96 Est @ 4.46% 1,472.56
2027 2,488.97 Est @ 3.19% 1,416.15
2028 2,546.29 Est @ 2.3% 1,350.16
2029 2,589.08 Est @ 1.68% 1,279.41
Present value of next 10 years cash flows $14,018.00
DB:T7D DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,589.08 × (1 + 0.23%) ÷ (7.3% – 0.23%)
$36,675.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $36,675.77 ÷ (1 + 7.3%)10
$18,123.46
DB:T7D Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $14,018.00 + $18,123.46
$32,141.46
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $32,141.46 / 53.37
$602.18
DB:T7D Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:T7D represents 0.88666x of NYSE:TDG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88666x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 602.18 x 0.88666
€533.93
Value per share (EUR) From above. €533.93
Current discount Discount to share price of €465.30
= -1 x (€465.30 - €533.93) / €533.93
12.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TransDigm Group is available for.
Intrinsic value
13%
Share price is €465.3 vs Future cash flow value of €533.93
Current Discount Checks
For TransDigm Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TransDigm Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • TransDigm Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TransDigm Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TransDigm Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:T7D PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-29) in USD $13.35
NYSE:TDG Share Price ** NYSE (2019-10-11) in USD $524.78
Europe Aerospace & Defense Industry PE Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 21.4x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TransDigm Group.

DB:T7D PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TDG Share Price ÷ EPS (both in USD)

= 524.78 ÷ 13.35

39.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransDigm Group is overvalued based on earnings compared to the Europe Aerospace & Defense industry average.
  • TransDigm Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does TransDigm Group's expected growth come at a high price?
Raw Data
DB:T7D PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 39.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
24.9%per year
Europe Aerospace & Defense Industry PEG Ratio Median Figure of 26 Publicly-Listed Aerospace & Defense Companies 1.59x
Germany Market PEG Ratio Median Figure of 264 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

DB:T7D PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 39.31x ÷ 24.9%

1.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransDigm Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TransDigm Group's assets?
Raw Data
DB:T7D PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-29) in USD $-24.79
NYSE:TDG Share Price * NYSE (2019-10-11) in USD $524.78
Europe Aerospace & Defense Industry PB Ratio Median Figure of 49 Publicly-Listed Aerospace & Defense Companies 1.96x
Germany Market PB Ratio Median Figure of 597 Publicly-Listed Companies 1.74x
DB:T7D PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TDG Share Price ÷ Book Value per Share (both in USD)

= 524.78 ÷ -24.79

-21.17x

* Primary Listing of TransDigm Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransDigm Group has negative assets, we can't compare the value of its assets to the Europe Aerospace & Defense industry average.
X
Value checks
We assess TransDigm Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. TransDigm Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

T7D Future Performance

 How is TransDigm Group expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TransDigm Group expected to grow at an attractive rate?
  • TransDigm Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • TransDigm Group's earnings growth is expected to exceed the Germany market average.
  • TransDigm Group's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:T7D Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:T7D Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 24.9%
DB:T7D Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 8.5%
Europe Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Europe Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:T7D Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:T7D Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 7,340 2
2022-09-30 7,172 1,770 1,495 4
2021-09-30 6,759 1,562 1,350 11
2020-09-30 6,527 1,459 1,125 16
2019-10-12
2019-09-30 5,470 1,208 750 16
DB:T7D Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-29 4,897 1,100 749
2019-03-30 4,219 1,021 822
2018-12-29 3,956 1,059 821
2018-09-30 3,811 1,022 905
2018-06-30 3,686 924 796
2018-03-31 3,603 852 748
2017-12-30 3,538 856 702
2017-09-30 3,504 789 469
2017-07-01 3,456 756 503
2017-04-01 3,356 787 494
2016-12-31 3,284 730 480
2016-09-30 3,171 683 583
2016-07-02 3,106 630 570

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TransDigm Group's earnings are expected to grow significantly at over 20% yearly.
  • TransDigm Group's revenue is expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:T7D Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from TransDigm Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:T7D Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30 25.99 25.99 25.99 1.00
2021-09-30 23.75 24.77 22.19 4.00
2020-09-30 20.03 21.16 18.86 8.00
2019-10-12
2019-09-30 13.50 14.16 12.57 8.00
DB:T7D Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-29 13.35
2019-03-30 14.69
2018-12-29 14.73
2018-09-30 16.28
2018-06-30 14.37
2018-03-31 13.55
2017-12-30 12.70
2017-09-30 8.45
2017-07-01 9.02
2017-04-01 8.82
2016-12-31 8.56
2016-09-30 10.39
2016-07-02 10.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if TransDigm Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess TransDigm Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TransDigm Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

T7D Past Performance

  How has TransDigm Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TransDigm Group's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TransDigm Group has delivered over 20% year on year earnings growth in the past 5 years.
  • TransDigm Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • TransDigm Group's 1-year earnings growth is negative, it can't be compared to the Europe Aerospace & Defense industry average.
Earnings and Revenue History
TransDigm Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TransDigm Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:T7D Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-29 4,896.99 748.89 617.22
2019-03-30 4,219.34 821.83 491.09
2018-12-29 3,956.47 821.26 453.35
2018-09-30 3,811.13 905.39 442.50
2018-06-30 3,685.58 795.96 427.04
2018-03-31 3,602.57 748.40 423.06
2017-12-30 3,538.23 702.25 414.29
2017-09-30 3,504.29 469.28 409.08
2017-07-01 3,455.62 503.09 405.22
2017-04-01 3,355.66 493.88 387.86
2016-12-31 3,283.73 479.87 378.17
2016-09-30 3,171.41 583.41 356.86
2016-07-02 3,105.98 570.42 342.38
2016-04-02 2,999.68 508.91 332.39
2016-01-02 2,821.91 478.12 314.95
2015-09-30 2,707.12 443.85 302.92
2015-06-27 2,539.56 410.33 292.94
2015-03-28 2,458.75 216.49 283.44
2014-12-27 2,430.48 190.47 282.30
2014-09-30 2,372.91 180.28 271.85
2014-06-28 2,270.40 61.02 252.87
2014-03-29 2,148.46 194.42 262.22
2013-12-28 2,023.30 177.49 248.25
2013-09-30 1,924.40 131.55 246.33
2013-06-29 1,847.27 230.52 245.11
2013-03-30 1,820.29 282.29 223.11
2012-12-29 1,778.15 295.90 215.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if TransDigm Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • TransDigm Group used its assets more efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • TransDigm Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TransDigm Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TransDigm Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

T7D Health

 How is TransDigm Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TransDigm Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TransDigm Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TransDigm Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TransDigm Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • TransDigm Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TransDigm Group Company Filings, last reported 3 months ago.

DB:T7D Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-29 -1,310.61 16,985.69 2,717.50
2019-03-30 -1,482.25 17,278.98 2,447.91
2018-12-29 -1,666.89 12,910.29 2,349.74
2018-09-30 -1,808.47 12,877.95 2,084.65
2018-06-30 -2,098.48 12,897.47 1,858.83
2018-03-31 -2,309.34 11,736.36 1,013.51
2017-12-30 -2,599.71 11,760.91 857.86
2017-09-30 -2,951.20 11,793.13 650.56
2017-07-01 -1,895.45 11,128.28 970.56
2017-04-01 -2,038.76 11,135.10 985.39
2016-12-31 -1,874.63 10,859.34 972.36
2016-09-30 -651.49 10,278.62 1,586.99
2016-07-02 -808.25 10,299.29 1,666.70
2016-04-02 -961.82 8,420.07 612.02
2016-01-02 -964.27 8,402.77 805.29
2015-09-30 -1,038.31 8,424.10 714.03
2015-06-27 -1,169.03 8,499.32 915.35
2015-03-28 -1,326.21 7,602.48 392.52
2014-12-27 -1,464.73 7,515.33 1,011.63
2014-09-30 -1,556.10 7,497.85 819.55
2014-06-28 -1,591.51 7,518.66 729.13
2014-03-29 -125.63 5,740.28 475.69
2013-12-28 -234.18 5,741.04 410.92
2013-09-30 -336.38 5,745.74 564.74
2013-06-29 801.73 4,346.70 269.17
2013-03-30 685.37 4,353.50 680.02
2012-12-29 598.85 4,328.93 554.43
  • TransDigm Group has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if TransDigm Group's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (6.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess TransDigm Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TransDigm Group has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

T7D Dividends

 What is TransDigm Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from TransDigm Group dividends. Estimated to be 0% next year.
If you bought €2,000 of TransDigm Group shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate TransDigm Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate TransDigm Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:T7D Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Europe Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:T7D Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-09-30
2022-09-30 0.00 1.00
2021-09-30 0.00 5.00
2020-09-30 0.00 6.00
2019-10-12
2019-09-30 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as TransDigm Group has not reported any payouts.
  • Unable to verify if TransDigm Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of TransDigm Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as TransDigm Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of TransDigm Group's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess TransDigm Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TransDigm Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TransDigm Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

T7D Management

 What is the CEO of TransDigm Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Stein
COMPENSATION $23,471,608
AGE 53
TENURE AS CEO 1.5 years
CEO Bio

Dr. Kevin M. Stein, Ph.D., has been President and Chief Executive Officer of TransDigm Group Incorporated since 2016 and April 25, 2018 respectively. Prior to that, Dr. Stein served as President and Chief Operating Officer at TransDigm Group Incorporated from January 2017 until March 2018. Dr. Stein served as an Executive Vice President of TransDigm Group Incorporated since November 2014. Dr. Stein served as the Chief Operating Officer of Power & Control at TransDigm Group Incorporated since October 20, 2014 until December 2016 and was responsible for the Fastener Products segment. Dr. Stein served as Executive Vice President at Precision Castparts Corp. from 2009 to November 2011 and served as its President of Pcc Structurals since 2011. He served as President of Fastener Products Division at Precision Castparts Corp. since 2009. He served as President of Cooper Bussmann Inc. since August 22, 2005. Dr. Stein joined Cooper Bussmann from Tyco Electronics, where he has been employed for six years, as general manager of the Raychem Circuit Protection unit. Previously, he served as Global Operations Director and product line general manager of Tyco and Raychem. Dr. Stein served as Chief Operating Officer—Power since October 2014 until December 2016. Dr. Stein served as Executive Vice President and President of the Structurals division of Precision Castparts Corp. from November 2011 to October 2014 and Executive Vice President and President of the Fasteners division of Precision Castparts Corp. from January 2009 to November 2011. He has been Director of TransDigm Group Inc. since May 2018. He holds a BS degree in Chemistry from Hobart College, Geneva, NY, Dr. Stein earned an M.S. degree in Chemistry and Ph.D. in Inorganic Chemistry from Stanford University.

CEO Compensation
  • Kevin's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Kevin's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the TransDigm Group management team in years:

1.5
Average Tenure
53
Average Age
  • The average tenure for the TransDigm Group management team is less than 2 years, this suggests a new team.
Management Team

Nick Howley

TITLE
Executive Chairman
COMPENSATION
$13M
AGE
67

Kevin Stein

TITLE
President
COMPENSATION
$23M
AGE
53
TENURE
1.5 yrs

Mike Lisman

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
35
TENURE
1.3 yrs

Jorge Valladares

TITLE
Chief Operating Officer
COMPENSATION
$7M
AGE
45
TENURE
0.5 yrs

Jim Skulina

TITLE
Executive Vice President
COMPENSATION
$7M
AGE
60
TENURE
1.8 yrs

Sarah Wynne

TITLE
Chief Accounting Officer
AGE
45
TENURE
0.9 yrs

Liza Sabol

TITLE
Director of Investor Relations

Halle Terrion

TITLE
General Counsel
AGE
51

Bernie Iversen

TITLE
Executive Vice President of Mergers & Acquisitions and Business Development
COMPENSATION
$14M
AGE
62
TENURE
7.4 yrs

Peter Palmer

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
55
TENURE
7.7 yrs
Board of Directors Tenure

Average tenure and age of the TransDigm Group board of directors in years:

9
Average Tenure
63
Average Age
  • The tenure for the TransDigm Group board of directors is about average.
Board of Directors

Kevin Stein

TITLE
President
COMPENSATION
$23M
AGE
53
TENURE
1.4 yrs

Sean Hennessy

TITLE
Independent Director
COMPENSATION
$172K
AGE
61
TENURE
13.5 yrs

Nick Howley

TITLE
Executive Chairman
COMPENSATION
$13M
AGE
67
TENURE
16.3 yrs

Michael Graff

TITLE
Independent Director
COMPENSATION
$162K
AGE
67
TENURE
16.3 yrs

Merv Dunn

TITLE
Independent Director
COMPENSATION
$162K
AGE
65
TENURE
12.1 yrs

David Barr

TITLE
Independent Director
COMPENSATION
$60K
AGE
56
TENURE
2 yrs

Ray Laubenthal

TITLE
Independent Director
COMPENSATION
$60K
AGE
58
TENURE
4.8 yrs

Rob Small

TITLE
Independent Director
COMPENSATION
$157K
AGE
52
TENURE
9.6 yrs

Bill Dries

TITLE
Independent Director
COMPENSATION
$157K
AGE
67
TENURE
8.5 yrs

John Staer

TITLE
Independent Director
COMPENSATION
$157K
AGE
68
TENURE
7.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
12. Mar 19 Buy Sarah Wynne Individual 11. Mar 19 11. Mar 19 10 €384.60 €3,846
01. Mar 19 Sell Mervin Dunn Individual 26. Feb 19 26. Feb 19 -8,944 €380.32 €-3,401,545
25. Feb 19 Sell Mervin Dunn Individual 22. Feb 19 22. Feb 19 -5,000 €383.86 €-1,919,316
22. Feb 19 Sell Mervin Dunn Individual 22. Feb 19 22. Feb 19 -4,600 €384.35 €-1,768,016
12. Feb 19 Sell Michael Graff Individual 08. Feb 19 08. Feb 19 -182 €374.71 €-68,198
X
Management checks
We assess TransDigm Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TransDigm Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

T7D News

Simply Wall St News

T7D Company Info

Description

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The company operates in three segments: Power & Control, Airframe, and Non-aviation. 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, databus and power controls, hoists, winches and lifting devices, and cargo loading and handling systems. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, and cargo delivery systems. It serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Non-aviation segment offers seat belts and safety restraints for ground transportation applications, mechanical/electro-mechanical actuators and controls for space applications, and refueling systems for heavy equipment. It serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is headquartered in Cleveland, Ohio.

Details
Name: TransDigm Group Incorporated
T7D
Exchange: DB
Founded: 1993
$25,349,046,432
53,374,740
Website: http://www.transdigm.com
Address: TransDigm Group Incorporated
The Tower at Erieview,
Suite 3000,
Cleveland,
Ohio, 44114,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TDG Common Stock New York Stock Exchange US USD 15. Mar 2006
DB T7D Common Stock Deutsche Boerse AG DE EUR 15. Mar 2006
LSE 0REK Common Stock London Stock Exchange GB USD 15. Mar 2006
BMV TDG * Common Stock Bolsa Mexicana de Valores MX MXN 15. Mar 2006
Number of employees
Current staff
Staff numbers
10,100
TransDigm Group employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/12 21:00
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/11
Last earnings filing: 2019/08/07
Last earnings reported: 2019/06/29
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.