Transdigm Stock Analysis, Valuation (NYSE:TDG)

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$323.39 $2.26 (0.7%) TDG stock closing price Oct 12, 2018 (Closing)

Watch the robo advisor video of Transdigm stock analysis on Amigobulls. Our TDG analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

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 2.9/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for TDG stock analysis. Transdigm valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Transdigm stock rating which is indicative of the company's financial performance.

Should you buy TDG stock?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 14.7.
  • The TTM operating margin was good at 43.14 for Transdigm.
  • Net margins stood at a healthy 19.8% (average) for Transdigm in the Trailing Twelve Months.
  • The company has a healthy dividend yield of 6.8.
  • Transdigm's return on invested capital of 17.5 is good.
  • The company has a healthy free cash flow margin of 15.6.

Should you sell TDG stock?

  • The company is trading at a price to sales multiple of 4.9, which is higher in comparison to the Aerospace sector average of 1.7, making TDG stock expensive.

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 is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about TDG stock.