Transdigm Group Incorporated
Find Ratings ReportsTRANSDIGM GROUP INC's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. TRANSDIGM GROUP INC is extremely liquid. Currently, the Quick Ratio is 3.01 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 5.30% 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 | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 1789.0 | 1397.0 |
EBITDA ($mil) | 860.0 | 656.0 |
EBIT ($mil) | 789.0 | 593.0 |
Net Income ($mil) | 382.0 | 228.0 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 4135.0 | 3288.0 |
Total Assets ($mil) | 20685.0 | 18489.0 |
Total Debt ($mil) | 21937.0 | 19866.0 |
Equity ($mil) | -3513.0 | -3336.0 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 60.31 | 58.98 |
EBITDA Margin | 48.07 | 46.95 |
Operating Margin | 44.1 | 42.45 |
Sales Turnover | 0.34 | 0.3 |
Return on Assets | 7.01 | 5.03 |
Return on Equity | 0.0 | 0.0 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 4.07 | 4.21 |
Debt/Capital | 1.19 | 1.2 |
Interest Expense | 300.0 | 286.0 |
Interest Coverage | 2.63 | 2.07 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 55.52 | 54.48 |
Div / share | 35.0 | 0.0 |
EPS | 4.87 | 3.33 |
Book value / share | -63.27 | -61.23 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 214860.0 | 237054.0 |
BUY. TRANSDIGM GROUP INC's P/E ratio indicates a significant premium compared to an average of 23.30 for the Transportation Equipment Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. 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 both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, TRANSDIGM GROUP INC seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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TDG 50.34 | Peers 23.30 | TDG 40.34 | Peers 20.65 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. TDG is trading at a significant premium 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 significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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TDG 31.87 | Peers 16.58 | TDG 1.16 | Peers 2.67 | |||||||||||||||||||||
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. |
Discount. 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 significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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TDG NM | Peers 4.90 | TDG 59.29 | Peers 54.33 | |||||||||||||||||||||
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. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. TDG is expected to keep pace with its peers on the basis of earnings growth. |
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Price/Sales |
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Sales Growth |
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TDG 9.44 | Peers 3.84 | TDG 23.88 | Peers 19.37 | |||||||||||||||||||||
Premium. 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 premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. TDG has a sales growth rate that exceeds its peers. |
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