Transdigm Group Incorporated
Find Ratings Reports
9.10 |
1.68%
TRANSDIGM GROUP INC's gross profit margin for the second quarter of its fiscal year 2022 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. TRANSDIGM GROUP INC is extremely liquid. Currently, the Quick Ratio is 3.92 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 17.82% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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| Income Statement | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Net Sales ($mil) | 1327.0 | 1193.0 |
| EBITDA ($mil) | 584.0 | 493.0 |
| EBIT ($mil) | 522.0 | 428.0 |
| Net Income ($mil) | 199.0 | 104.0 |
| Balance Sheet | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Cash & Equiv. ($mil) | 4216.0 | 4072.0 |
| Total Assets ($mil) | 18841.0 | 18739.0 |
| Total Debt ($mil) | 19915.0 | 20241.0 |
| Equity ($mil) | -2899.0 | -3528.0 |
| Profitability | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Gross Profit Margin | 57.65 | 53.9 |
| EBITDA Margin | 44.0 | 41.32 |
| Operating Margin | 39.34 | 35.88 |
| Sales Turnover | 0.27 | 0.24 |
| Return on Assets | 4.71 | 1.22 |
| Return on Equity | 0.0 | 0.0 |
| Debt | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Current Ratio | 5.05 | 4.02 |
| Debt/Capital | 1.17 | 1.21 |
| Interest Expense | 266.0 | 268.0 |
| Interest Coverage | 1.96 | 1.6 |
| Share Data | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Shares outstanding (mil) | 54.57 | 54.86 |
| Div / share | 0.0 | 0.0 |
| EPS | 3.38 | 1.79 |
| Book value / share | -53.13 | -64.31 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 339204.0 | 327203.0 |
HOLD. TRANSDIGM GROUP INC's P/E ratio indicates a discount compared to an average of 46.20 for the Transportation Equipment Manufacturing subsector and a significant premium compared to the S&P 500 average of 19.86. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, TRANSDIGM GROUP INC proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TDG 38.32 | Peers 46.20 | TDG 33.40 | Peers 27.51 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TDG is trading at a discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TDG is trading at a premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| TDG 25.72 | Peers 22.40 | TDG 0.71 | Peers 0.75 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. TDG is trading at a significant premium to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. TDG trades at a valuation on par to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| TDG NM | Peers 9.34 | TDG 372.03 | Peers 240.15 | |||||||||||||||||||||
|
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TDG's P/B is negative making this valuation measure meaningless. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. TDG is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| TDG 5.98 | Peers 34.71 | TDG 11.61 | Peers 35.89 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TDG is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. TDG significantly trails its peers on the basis of sales growth. |
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