Transdigm Stock Analysis, Valuation (NYSE:TDG)

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$332.7 $2.6 (0.79%) TDG stock closing price May 21, 2018 (Closing)
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Transdigm
Updated on : May 21, 2018
previous close
TDG 332.7 (0%)
S&P 500 2733 (0%)
Closing Price On: May 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Aerospace Defense Equipment
Sector :
Aerospace
5 Quarter Revenue
Revenue Growth
2018-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
14.7%
Operating Profit
Operating Margin:
43.1%
Sector Average:
9.9%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$160.9M
Net Income:
$196.3M
Dividend Yield
TDG dividend yield:
6.61%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
ROIC
FCF Margin
High Dividend Yield
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TDG PS :
5.1
Industry PS :
1.5
Sector:   Aerospace.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
17.5%
Free Cash Flow Margin:
15.6%
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Transdigm Stock Analysis

5 2

Watch the robo advisor video of Transdigm stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for TDG stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

TransDigm Group Incorporated Stock Rating 3.3/5

Amigobulls TDG stock analysis uses latest quarter 2018 Q2 financial data like Transdigm revenue growth, profit margins and cash flows. Transdigm valuation forms a crucial part of our stock analysis. Transdigm stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy TDG stock?

  • The company saw a significant growth in revenue with a 5 year CAGR of 14.7%.
  • Transdigm had a healthy average operating margin of 43.1% over the last 4 quarters.
  • Net margins came in at average 19.8% for Transdigm over the last twelve months.
  • The company has a healthy dividend yield of 6.61%.
  • Transdigm has an attractive ROIC (Return on Invested Capital) of 17.5%
  • The company has a good Free Cash Flow (FCF) margin of 15.6%.

Should you sell TDG stock?

  • TDG stock is trading at a PS multiple of 5.1, which is a negative when compared to the Aerospace Defense Equipment industry average multiple of 1.5.

Comments on this video and Transdigm stock

Amigobulls Transdigm stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of TDG stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Transdigm revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about TDG stock.