TDG
TransDigm Group Incorporated
TDG's fundamentals are strong and it looks cheap: trading at 34x earnings, below its usual 48x.
TDG Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Weak |
TDG's revenue, profitability and cash flow are currently healthy, but its balance sheet is weak.
TDG PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 34x | $1,203 | — |
| Cheap | 39x | $1,391 | +16% |
| Fair | 48x | $1,689 | +40% |
| Expensive | 57x | $2,012 | +67% |
Historical ranges are pointers, not guarantees.
TDG's PE is in its cheap range at 34x.
TDG Forward outlook
There aren't enough analyst estimates for TDG to show an outlook.
TDG Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q3 2026 | $35.51 | +11% |
| Q2 2026 | $32.96 | +9.3% |
| Q1 2026 | $32.04 | +8.1% |
| Q4 2025 | $31.08 | +9.6% |
| Q3 2025 | $32.08 | +25% |
| Q2 2025 | $30.15 | +12% |
| Q1 2025 | $29.64 | +18% |
| Q4 2024 | $28.37 | +20% |
TDG's earnings per share have climbed steadily: $35.51 over the past year, up 11% from the year before, and higher year over year for 21 quarters in a row.
TDG Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $3B | +23% |
| Q2 2026 | $2.7B | +23% |
| Q1 2026 | $2.5B | +18% |
| Q4 2025 | $2.3B | +14% |
| Q3 2025 | $2.4B | +11% |
| Q2 2025 | $2.2B | +9.3% |
| Q1 2025 | $2.2B | +12% |
| Q4 2024 | $2B | +12% |
TDG's revenue has grown year over year for 22 quarters in a row: $3B last quarter, up 23% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 46% | -2 points |
| Q2 2026 | 45% | -1.7 points |
| Q1 2026 | 46% | +0.2 points |
| Q4 2025 | 46% | -2.9 points |
| Q3 2025 | 48% | +4.5 points |
| Q2 2025 | 46% | +0.8 points |
| Q1 2025 | 46% | +0.9 points |
| Q4 2024 | 49% | +4.6 points |
TDG's operating margin was 46% last quarter, down 2 points from the same quarter a year ago.
TDG Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $427M | -3.2% |
| Q2 2026 | $650M | +13% |
| Q1 2026 | $64M | -30% |
| Q4 2025 | $772M | +8.7% |
| Q3 2025 | $441M | -17% |
| Q2 2025 | $573M | +0.9% |
| Q1 2025 | $92M | -49% |
| Q4 2024 | $710M | +18% |
TDG's free cash flow has been positive every quarter for seven years: $1.9B over the past year, up 5.3% from the year before.
TDG Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.3% | +200K shares |
| 1 year | -1% | -600K shares |
| 3 years | +0.7% | +400K shares |
| 5 years | -1.4% | -800K shares |
| Available history | +0.3% | +200K shares |
TDG has 58M diluted shares, down 1% from a year ago, with $2.8B in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $943M |
| Q2 2026 | $1.1B |
| Q1 2026 | $615M |
| Q4 2025 | $106M |
| Q3 2025 | — |
| Q2 2025 | $131M |
| Q1 2025 | $53M |
| Q4 2024 | $316M |
TDG spent $2.8B buying back its own shares over the past year, about six times what it spent the year before.
TDG Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 6.0x | High |
| Q2 2026 | 6.0x | High |
| Q1 2026 | 5.7x | High |
| Q4 2025 | 5.8x | High |
| Q3 2025 | 5.9x | High |
| Q2 2025 | 5.0x | High |
| Q1 2025 | 5.3x | High |
| Q4 2024 | 5.4x | High |
TDG's net debt is about 6.0 years of its operating earnings (EBITDA), up from 5.8 years a year ago.
TDG Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 51.4 | Neutral |
| Stochastic | 45.9 | Neutral |
TDG's weekly RSI is 51 (neutral) and its Stochastic is 46 (neutral).
TDG PE vs Industrials Sector
| Metric | TDG | Sector median | Relative |
|---|---|---|---|
| PE | 34x | 24x | 41% above |
| PE % | 7 | 58 | 51 pts below |
TDG is trading at 34x earnings, a 41% premium to the Industrials sector's median of 24x.
TDG Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $1,138.2 | 5.7% above |
| 20 week MA | $1,185.4 | 1.5% above |
| 50 week MA | $1,239.0 | 2.9% below |
| 100 week MA | $1,304.6 | 7.8% below |
| 200 week MA | $1,175.0 | 2.4% above |
TDG's trend is mixed: it's above three of its five weekly moving averages, and 2.4% above its 200-week average.
TDG Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $564.0 | $606.7 | +7.6% |
| 2021 | $606.7 | $628.0 | +3.5% |
| 2022 | $628.0 | $620.3 | -1.2% |
| 2023 | $620.3 | $1,011.6 | +63% |
| 2024 | $1,011.6 | $1,290.9 | +28% |
| 2025 | $1,290.9 | $1,309.2 | +1.4% |
| 2026 YTD | $1,309.2 | $1,203.0 | -8.1% |
TDG has finished higher in five of the last six years. It's down 8.1% so far in 2026.