TDG

Industrials

TransDigm Group Incorporated · Aerospace & Defense · $68B

UQS Score — Balanced Preset
63.2
Good

TransDigm Group Incorporated scores 63.2/100 using the Balanced preset.

UQS vs Industrials Sector
TDG
63.2
Sector avg
42.4
Quality
Good
Moat
Neutral
Growth
Strong
Risk
Neutral
Valuation
Neutral

What is TransDigm Group Incorporated?

TransDigm Group is a Cleveland-based aerospace components manufacturer supplying proprietary parts to commercial airlines, defense agencies, and airframe builders worldwide.

TransDigm designs and produces highly engineered aircraft components sold into both commercial and military aviation markets. Revenue comes primarily from aftermarket parts — components that must be replaced throughout an aircraft's service life — giving the business a recurring demand profile. The company also serves non-aviation markets including ground transportation and space applications.

The company was incorporated in 2006 and is headquartered in Cleveland, Ohio.

  • Actuators, controls, and ignition systems
  • Engineered latching, locking, and sealing devices
  • Cockpit security and audio systems
  • Seat belts, safety restraints, and parachutes

Is TDG a Good Stock to Buy?

UQS Score rates TDG as Good overall, reflecting a balanced profile across its five scored pillars.

The Growth pillar stands out as the clearest positive, supported by TransDigm's aftermarket-driven business model and ongoing acquisition strategy. Quality also registers as Good, consistent with the company's focus on proprietary, sole-source components.

Moat and Risk both land at Neutral, reflecting competitive pressures in defense procurement and the company's historically elevated debt load.

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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does TDG pay dividends?

Yes — TransDigm Group Incorporated pays a dividend.

TransDigm pays a regular dividend, though the company is better known for periodic special dividends tied to its capital allocation strategy. Management balances dividend distributions with an active acquisition pipeline, reflecting confidence in ongoing cash generation from its aftermarket parts business.

When does TDG report earnings?

TransDigm reports earnings on a quarterly cadence, typical for US-listed equities.

The company's aftermarket segment has been a consistent driver of revenue, with defense and commercial aviation demand supporting results across recent periods. Acquisition activity continues to influence reported growth figures quarter to quarter.

For the most recent quarter's results, visit TransDigm Group's investor relations page directly.

TDG Price History

+123.6% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in TransDigm Group Incorporated?

$
Today it would be worth
$24,350
That's a +144% total return, or +19.5% annualized.

Based on TransDigm Group Incorporated's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

Frequently Asked Questions

What does TransDigm do?

TransDigm designs and manufactures proprietary aerospace components for commercial airlines, military agencies, and airframe builders. Its products span actuators, ignition systems, cockpit security hardware, and safety restraints. A large share of revenue comes from aftermarket replacement parts, which tend to generate recurring demand throughout an aircraft's operational life.

Does TDG pay dividends?

Yes, TransDigm pays a regular dividend. The company is also known for issuing special dividends when its capital structure allows. Investors should check TransDigm's investor relations page for the current dividend schedule and payment history.

When does TDG report earnings?

TransDigm reports on a standard quarterly schedule. Exact upcoming dates are published on the company's investor relations page, which is the most reliable source for confirmed report timing.

Is TDG a good stock to buy?

UQS Score rates TDG as Good, driven by a Strong Growth pillar and Good Quality rating. Neutral readings on Moat, Risk, and Valuation suggest the stock is neither deeply discounted nor obviously overpriced. Pro members can view the complete pillar breakdown to inform their own assessment.

Is TDG overvalued?

TDG's Valuation pillar is rated Neutral, placing it in line with broader sector expectations rather than at a clear premium or discount. Investors seeking deeper valuation context — including underlying financial metrics — can access the full analysis through a UQS Pro account.

What is TDG's market cap bracket?

TransDigm is classified as a large-cap company, reflecting its scale within the aerospace and defense components industry.

Is TDG a long-term quality indicator?

TransDigm's aftermarket-focused model and proprietary component portfolio support a durable demand profile over time. The UQS Quality pillar rates TDG as Good, and the Growth pillar is Strong — both factors relevant to long-term holding considerations. Risk and Moat at Neutral are worth monitoring.

What sector does TDG belong to?

TransDigm is classified in the Industrials sector, specifically within aerospace and defense components. Its revenue mix spans commercial aviation aftermarket parts, military procurement, and a smaller non-aviation segment covering ground transportation and space applications.

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Pro Analysis

TDG — Score History

55606570Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 11 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 7, 202662.664.656.089.446.650.6-0.4
May 3, 202663.064.656.089.446.653.00.0
Apr 26, 202663.064.656.089.446.653.2+0.5
Apr 19, 202662.564.656.089.446.649.9-0.2
Apr 18, 202662.764.656.089.446.650.8-0.9
Apr 14, 202663.664.656.089.446.657.1-0.1
Apr 12, 202663.764.656.089.446.657.9-0.2
Apr 11, 202663.964.656.089.446.659.4-0.1
Apr 8, 202664.064.656.089.446.659.60.0
Apr 5, 202664.064.656.089.446.659.5+0.1

TDG — Pillar Breakdown

Quality

63.9/100 (25%)

TransDigm Group Incorporated shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Strong

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

89.4/100 (20%)

TransDigm Group Incorporated is growing rapidly with strong revenue and earnings expansion.

Recent Revenue TrendModerate

Revenue trajectory over the last twelve months.

3Y Revenue CAGRStrong

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

48.9/100 (15%)

TransDigm Group Incorporated has some risk factors including moderate leverage or solvency concerns.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

53.6/100 (15%)

TransDigm Group Incorporated has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowModerate

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

56/100 (25%)

TransDigm Group Incorporated has meaningful competitive advantages that should protect its market position. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for TDG.

Score Composition

Quality
63.9×25%16.0
Growth
89.4×20%17.9
Risk
48.9×15%7.3
Valuation
53.6×15%8.0
Moat
56.0×25%14.0
Total
63.2Good

Financial Data

More Stock Analysis

How is the TDG UQS Score Calculated?

The UQS (Unified Quality Score) for TransDigm Group Incorporated is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses TransDigm Group Incorporated's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether TransDigm Group Incorporated is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.