Is Transdigm Group Stock a Good Investment?
Transdigm Group Investment Advice | TDG |
- Examine Transdigm Group's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Transdigm Group's leadership team and their track record. Good management can help Transdigm Group navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Aerospace & Defense space and any emerging trends that could impact Transdigm Group's business and its evolving consumer preferences.
- Compare Transdigm Group's performance and market position to its competitors. Analyze how Transdigm Group is positioned in terms of product offerings, innovation, and market share.
- Check if Transdigm Group pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Transdigm Group's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Transdigm Group Incorporated stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Transdigm Group Incorporated is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Transdigm Group Stock
Researching Transdigm Group's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 95.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 25.6. Transdigm Group last dividend was issued on the 4th of October 2024.
To determine if Transdigm Group is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Transdigm Group's research are outlined below:
| Transdigm Group generated a negative expected return over the last 90 days | |
| Over 95.0% of the company shares are owned by institutional investors | |
| On 18th of October 2024 Transdigm Group paid $ 75.0 per share dividend to its current shareholders | |
| Latest headline from thelincolnianonline.com: Disposition of tradable shares by Joel Reiss of Transdigm Group at 1264.58 subject to Rule 16b-3 |
Transdigm Group Quarterly Liabilities And Stockholders Equity |
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Transdigm Group uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Transdigm Group Incorporated. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Transdigm Group's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of November 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Transdigm Group's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Transdigm Group's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2006-07-31 | 2006-06-30 | 0.29 | 0.35 | 0.06 | 20 | ||
2009-08-04 | 2009-06-30 | 0.79 | 0.87 | 0.08 | 10 | ||
2009-05-05 | 2009-03-31 | 0.77 | 0.85 | 0.08 | 10 | ||
2008-05-06 | 2008-03-31 | 0.6 | 0.68 | 0.08 | 13 | ||
2007-04-30 | 2007-03-31 | 0.43 | 0.53 | 0.1 | 23 | ||
2010-11-15 | 2010-09-30 | 0.9 | 1.02 | 0.12 | 13 | ||
2012-02-07 | 2011-12-31 | 1.25 | 1.42 | 0.17 | 13 | ||
2012-08-07 | 2012-06-30 | 1.7 | 1.88 | 0.18 | 10 |
Know Transdigm Group's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Transdigm Group is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Transdigm Group Incorporated backward and forwards among themselves. Transdigm Group's institutional investor refers to the entity that pools money to purchase Transdigm Group's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Matrix Capital Management Company, Llc | 2024-06-30 | 1.1 M | Altarock Partners Llc | 2024-09-30 | 1 M | Norges Bank | 2024-06-30 | 836.5 K | Windacre Partnership Llc | 2024-09-30 | 728 K | Stockbridge Partners Llc | 2024-09-30 | 706.3 K | Amvescap Plc. | 2024-06-30 | 654.6 K | T. Rowe Price Associates, Inc. | 2024-06-30 | 522.1 K | Primecap Management Company | 2024-09-30 | 513.2 K | Northern Trust Corp | 2024-09-30 | 450.1 K | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 6.3 M | Vanguard Group Inc | 2024-09-30 | 6.2 M |
Transdigm Group's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 72.71 B.Market Cap |
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Transdigm Group's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.15 | 0.13 | |
| Return On Capital Employed | 0.18 | 0.10 | |
| Return On Assets | 0.07 | 0.04 | |
| Return On Equity | (0.27) | (0.29) |
Determining Transdigm Group's profitability involves analyzing its financial statements and using various financial metrics to determine if Transdigm Group is a good buy. For example, gross profit margin measures Transdigm Group's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Transdigm Group's profitability and make more informed investment decisions.
Evaluate Transdigm Group's management efficiency
Transdigm Group has Return on Asset of 0.0981 % which means that on every $100 spent on assets, it made $0.0981 of profit. This is way below average. Transdigm Group's management efficiency ratios could be used to measure how well Transdigm Group manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to 0.13. The current Return On Capital Employed is estimated to decrease to 0.1. At this time, Transdigm Group's Non Current Assets Total are most likely to increase significantly in the upcoming years. The Transdigm Group's current Non Currrent Assets Other is estimated to increase to about 8.4 B, while Other Current Assets are forecasted to increase to (5.5 B).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (108.70) | (103.27) | |
| Tangible Book Value Per Share | (348.58) | (331.15) | |
| Enterprise Value Over EBITDA | 26.52 | 27.85 | |
| Price Book Value Ratio | (13.11) | (12.46) | |
| Enterprise Value Multiple | 26.52 | 27.85 | |
| Price Fair Value | (13.11) | (12.46) |
Management at Transdigm Group focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Forward Dividend Yield 0.0028 | Beta 1.423 |
Basic technical analysis of Transdigm Stock
As of the 21st of November, Transdigm Group has the Semi Deviation of 2.07, risk adjusted performance of 0.0396, and Coefficient Of Variation of 2211.04. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Transdigm Group, as well as the relationship between them. Please validate Transdigm Group treynor ratio, and the relationship between the standard deviation and downside variance to decide if Transdigm Group is priced more or less accurately, providing market reflects its prevalent price of 1240.13 per share. Given that Transdigm Group has jensen alpha of (0.04), we advise you to double-check Transdigm Group Incorporated's current market performance to make sure the company can sustain itself at a future point.Transdigm Group's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Transdigm Group insiders, such as employees or executives, is commonly permitted as long as it does not rely on Transdigm Group's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Transdigm Group insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Transdigm Group's Outstanding Corporate Bonds
Transdigm Group issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Transdigm Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Transdigm bonds can be classified according to their maturity, which is the date when Transdigm Group Incorporated has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| TransDigm 55 percent Corp BondUS893647BL01 | View | |
| TDG 675 15 AUG 28 Corp BondUS893647BR70 | View | |
| US893647BQ97 Corp BondUS893647BQ97 | View | |
| US893647BP15 Corp BondUS893647BP15 | View |
Understand Transdigm Group's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Transdigm Group's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0396 | |||
| Market Risk Adjusted Performance | 0.0642 | |||
| Mean Deviation | 1.23 | |||
| Semi Deviation | 2.07 | |||
| Downside Deviation | 2.13 | |||
| Coefficient Of Variation | 2211.04 | |||
| Standard Deviation | 1.69 | |||
| Variance | 2.85 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0542 | |||
| Maximum Drawdown | 10.06 | |||
| Value At Risk | (2.64) | |||
| Potential Upside | 2.35 | |||
| Downside Variance | 4.56 | |||
| Semi Variance | 4.3 | |||
| Expected Short fall | (1.09) | |||
| Skewness | (1.09) | |||
| Kurtosis | 3.14 |
| Risk Adjusted Performance | 0.0396 | |||
| Market Risk Adjusted Performance | 0.0642 | |||
| Mean Deviation | 1.23 | |||
| Semi Deviation | 2.07 | |||
| Downside Deviation | 2.13 | |||
| Coefficient Of Variation | 2211.04 | |||
| Standard Deviation | 1.69 | |||
| Variance | 2.85 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0542 | |||
| Maximum Drawdown | 10.06 | |||
| Value At Risk | (2.64) | |||
| Potential Upside | 2.35 | |||
| Downside Variance | 4.56 | |||
| Semi Variance | 4.3 | |||
| Expected Short fall | (1.09) | |||
| Skewness | (1.09) | |||
| Kurtosis | 3.14 |
Consider Transdigm Group's intraday indicators
Transdigm Group intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Transdigm Group stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 31828.56 | |||
| Daily Balance Of Power | (0.72) | |||
| Rate Of Daily Change | 0.96 | |||
| Day Median Price | 1274.24 | |||
| Day Typical Price | 1262.87 | |||
| Market Facilitation Index | 1.0E-4 | |||
| Price Action Indicator | (60.59) | |||
| Period Momentum Indicator | (52.98) | |||
| Relative Strength Index | 42.2 |
Transdigm Group Corporate Filings
F4 | 20th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Transdigm Stock media impact
Far too much social signal, news, headlines, and media speculation about Transdigm Group that are available to investors today. That information is available publicly through Transdigm media outlets and privately through word of mouth or via Transdigm internal channels. However, regardless of the origin, that massive amount of Transdigm data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Transdigm Group news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Transdigm Group relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Transdigm Group's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Transdigm Group alpha.
Transdigm Group Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Transdigm Group can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Transdigm Group Historical Investor Sentiment
Investor biases related to Transdigm Group's public news can be used to forecast risks associated with an investment in Transdigm. The trend in average sentiment can be used to explain how an investor holding Transdigm can time the market purely based on public headlines and social activities around Transdigm Group Incorporated. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Transdigm Group's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Transdigm Group and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Transdigm Group news discussions. The higher the estimate score, the more favorable the investor's outlook on Transdigm Group.
Transdigm Group Corporate Directors
| Michele Santana | Independent Director | Profile | |
| John Staer | Independent Director | Profile | |
| Robert Small | Independent Director | Profile | |
| David Barr | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Transdigm Group Incorporated. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Transdigm Group. If investors know Transdigm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Transdigm Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.20) | Earnings Share 25.6 | Revenue Per Share 137.37 | Quarterly Revenue Growth 0.18 | Return On Assets 0.0981 |
The market value of Transdigm Group is measured differently than its book value, which is the value of Transdigm that is recorded on the company's balance sheet. Investors also form their own opinion of Transdigm Group's value that differs from its market value or its book value, called intrinsic value, which is Transdigm Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Transdigm Group's market value can be influenced by many factors that don't directly affect Transdigm Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Transdigm Group's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Transdigm Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Transdigm Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.