Transdigm Stock Analysis, Valuation (NYSE:TDG)

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$364.89 $1.98 (0.55%) TDG stock closing price Jul 20, 2018 (Closing)

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 3.2/5

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?

  • Revenue growth has been tremendous with a compounded annual growth of 14.7 over the last 5 years.
  • Transdigm had a healthy average operating margin of 43.14 over the last 4 quarters.
  • Net margins came in at average 19.8% for Transdigm over the last twelve months.
  • Transdigm's dividend yield of 6.03 is attractive.
  • Transdigm has an attractive ROIC (Return on Invested Capital) of 17.5
  • Transdigm has a healthy FCF (Free Cash Flow) margin of 15.6.

Should you sell TDG stock?

  • TDG stock is trading at a PE ratio of 28.9, which is worse than the sector average multiple of 23.6.
  • TDG stock is trading at a PS multiple of 5.6, which is a negative when compared to the Aerospace sector average multiple of 1.7.

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.