NYSE · Industrials

TransDigm Group Incorporated

TDG · Aerospace & Defense

$1,155.86

▲ 1.41 (0.12%)

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Mr. Market is currently offering TransDigm Group Incorporated at $1,155.86.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 60.1%

Operating Margin 47.4%

Net Income Margin 23.5%

Fin. Health D

Years to Pay Off Debt 14.5 yrs

Working Capital vs Long-Term Debt -$24.3B

Working Capital $4.8B

Valuation A

Price-to-Book -6.74x

Cash Flow A

Free Cash Flow $1.8B

CapEx % of Net Income 10.7%

Owner Earnings $2.7B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $65.3B

Enterprise Value $92.7B

P/E (TTM) 37.23

Dividend Yield N/A

Exchange NYSE

Key Margins

Gross Profit 60.1%

Operating Margin 47.4%

Net Margin 23.5%

Company Info

Sector Industrials

Industry Aerospace & Defense

Employees 16500

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering TransDigm Group Incorporated at $1,155.86.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About TransDigm Group Incorporated

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, cargo loading and handling systems, delivery systems, and electronic components. Its Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, parachutes, specialized flight, wind tunnel and jet engine testing services and equipment, and testing and instrumentation solutions, as well as engineered audio, radio, and antenna systems. The Non-Aviation segment offers seat belts and safety restraints; mechanical/electromechanical actuators and controls; hydraulic/electromechanical actuators and fuel valves; refueling systems; and turbine controls. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots; airframe manufacturers, cabin system and subsystem suppliers, airlines, and third party maintenance suppliers; and off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers, as well as manufacturers of heavy equipment. The company was formerly known as TD Holding Corporation and changed its name to TransDigm Group Incorporated in 2006. The company was founded in 1993 and is headquartered in Cleveland, Ohio.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	60.1% ▲	58.8%	58.3%	57.1%	N/A
Operating Margin %	47.4% ▲	45.1%	44.4%	40.8%	N/A
Net Income %	23.5% ▲	21.6%	19.7%	16.0%	N/A
Diluted EPS	32.08 ▲	25.62	22.03	13.40	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$22.9B	$25.6B	$20.0B	$18.1B	N/A
Total Debt	$30.0B ↑	$24.9B	$19.8B	$19.8B	N/A
Working Capital	$4.8B ▲	$3.7B	$5.2B	$4.2B	N/A
Years to Pay Debt	14.48	14.53	15.23	22.88	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$1.8B ▼	$1.9B	$1.2B	$829M	N/A
Owner Earnings	$2.7B	$2.2B	$1.7B	$1.2B	N/A
CapEx % of Net Income	10.7%	9.6%	10.7%	13.7%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-5,064	-10,396	0	0
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	4,592,000	3,859,000	3,148,000	2,456,000
Total Unusual Items	-24,000	-46,000	-10,000	-13,000
Total Unusual Items Excluding Goodwill	-24,000	-46,000	-10,000	-13,000
Net Income From Continuing Operation Net Minority Interest	2,074,000	1,714,000	1,298,000	865,000
Reconciled Depreciation	367,000	312,000	268,000	253,000
Reconciled Cost Of Revenue	3,354,000	3,117,000	2,614,000	2,213,000
EBITDA	4,568,000	3,813,000	3,148,000	2,456,000
EBIT	4,201,000	3,501,000	2,880,000	2,203,000
Net Interest Income	-1,583,000	-1,344,000	-1,220,000	-1,077,000
Interest Expense	1,572,000	1,286,000	1,164,000	1,076,000
Normalized Income	2,092,936	1,749,604	1,298,000	865,000
Net Income From Continuing And Discontinued Operation	2,074,000	1,714,000	1,298,000	866,000
Total Expenses	4,642,000	4,363,000	3,662,000	3,214,000
Total Operating Income As Reported	4,165,000	3,531,000	2,923,000	2,215,000
Diluted Average Shares	58,200	57,800	57,200	58,200
Basic Average Shares	58,200	57,800	57,200	58,200
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,866,000	1,481,000	1,260,000	780,000
Net Income Common Stockholders	1,866,000	1,481,000	1,260,000	780,000
Otherunder Preferred Stock Dividend	208,000	233,000	38,000	86,000
Net Income	2,074,000	1,714,000	1,298,000	866,000
Minority Interests	0	-1,000	-1,000	-1,000
Net Income Including Noncontrolling Interests	2,074,000	1,715,000	1,299,000	867,000
Net Income Discontinuous Operations		0	0	1,000	0
Net Income Continuous Operations	2,074,000	1,715,000	1,299,000	866,000
Tax Provision	555,000	500,000	417,000	261,000
Pretax Income	2,629,000	2,215,000	1,716,000	1,127,000
Other Income Expense	23,000	-18,000	13,000	-11,000
Other Non Operating Income Expenses	47,000	28,000	13,000	-11,000
Special Income Charges	-24,000	-46,000	-10,000	-13,000
Gain On Sale Of Business			0	7,000	69,000
Other Special Charges					10,000
Write Off		3,000	-4,000	9,000	0
Restructuring And Mergern Acquisition	24,000	46,000	14,000	11,000
Net Non Operating Interest Income Expense	-1,583,000	-1,344,000	-1,220,000	-1,077,000
Total Other Finance Cost	11,000	58,000	56,000	1,000
Interest Expense Non Operating	1,572,000	1,286,000	1,164,000	1,076,000
Operating Income	4,189,000	3,577,000	2,923,000	2,215,000
Operating Expense	1,122,000	1,095,000	919,000	884,000
Depreciation Amortization Depletion Income Statement	201,000	161,000	139,000	136,000
Depreciation And Amortization In Income Statement	201,000	161,000	139,000	136,000
Amortization	201,000	161,000	139,000	136,000
Amortization Of Intangibles Income Statement	201,000	161,000	139,000	136,000
Selling General And Administration	921,000	934,000	780,000	748,000
General And Administrative Expense	921,000	934,000	770,000	728,000
Other Gand A	779,000	738,000	629,000	563,000
Salaries And Wages	142,000	196,000	141,000	165,000
Gross Profit	5,311,000	4,672,000	3,842,000	3,099,000
Cost Of Revenue	3,520,000	3,268,000	2,743,000	2,330,000
Total Revenue	8,831,000	7,940,000	6,585,000	5,429,000
Operating Revenue	8,831,000	7,940,000	6,585,000	5,429,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	6,090	5,689	5,689	5,689
Ordinary Shares Number	56,376	56,216	55,307	54,361
Share Issued	62,465	61,905	60,996	60,050
Net Debt	27,207,000	18,619,000	16,278,000	16,794,000
Total Debt	30,030,000	24,899,000	19,766,000	19,813,000
Tangible Book Value	-23,752,000	-20,155,000	-13,719,000	-15,164,000
Invested Capital	20,329,000	18,590,000	17,766,000	16,022,000
Working Capital	4,830,000	3,690,000	5,159,000	4,223,000
Net Tangible Assets	-23,752,000	-20,155,000	-13,719,000	-15,164,000
Capital Lease Obligations	15,000	19,000	16,000	18,000
Common Stock Equity	-9,686,000	-6,290,000	-1,984,000	-3,773,000
Total Capitalization	19,481,000	18,006,000	17,346,000	15,596,000
Total Equity Gross Minority Interest	-9,679,000	-6,283,000	-1,978,000	-3,766,000
Minority Interest	7,000	7,000	6,000	7,000
Stockholders Equity	-9,686,000	-6,290,000	-1,984,000	-3,773,000
Gains Losses Not Affecting Retained Earnings	-10,000	-42,000	-98,000	-267,000
Other Equity Adjustments	-10,000	-42,000	-98,000	-267,000
Treasury Stock	2,206,000	1,706,000	1,706,000	1,706,000
Retained Earnings	-10,606,000	-7,362,000	-2,621,000	-3,914,000
Additional Paid In Capital	3,135,000	2,819,000	2,440,000	2,113,000
Capital Stock	1,000	1,000	1,000	1,000
Common Stock	1,000	1,000	1,000	1,000
Total Liabilities Net Minority Interest	32,588,000	31,869,000	21,948,000	21,873,000
Total Non Current Liabilities Net Minority Interest	30,406,000	25,530,000	20,369,000	20,447,000
Other Non Current Liabilities	480,000	468,000	412,000	482,000
Non Current Deferred Liabilities	759,000	766,000	627,000	596,000
Non Current Deferred Taxes Liabilities	759,000	766,000	627,000	596,000
Long Term Debt And Capital Lease Obligation	29,167,000	24,296,000	19,330,000	19,369,000
Long Term Debt	29,167,000	24,296,000	19,330,000	19,369,000
Current Liabilities	2,182,000	6,339,000	1,579,000	1,426,000
Other Current Liabilities	204,000	237,000	174,000	179,000
Current Deferred Liabilities	143,000	168,000	79,000	45,000
Current Deferred Revenue	143,000	168,000	79,000	45,000
Current Debt And Capital Lease Obligation	863,000	603,000	436,000	444,000
Current Capital Lease Obligation	15,000	19,000	16,000	18,000
Current Debt	848,000	584,000	420,000	426,000
Other Current Borrowings	848,000	584,000	420,000	426,000
Pensionand Other Post Retirement Benefit Plans Current	235,000	256,000	217,000	168,000
Current Provisions	25,000	27,000	58,000	65,000
Payables And Accrued Expenses	712,000	5,048,000	615,000	525,000
Current Accrued Expenses	245,000	221,000	153,000	196,000
Interest Payable	208,000	185,000	125,000	170,000
Payables	467,000	4,827,000	462,000	329,000
Dividends Payable	59,000	4,396,000	19,000	39,000
Total Tax Payable	40,000	108,000	138,000	11,000
Income Tax Payable	40,000	108,000	138,000	11,000
Accounts Payable	368,000	323,000	305,000	279,000
Total Assets	22,909,000	25,586,000	19,970,000	18,107,000
Total Non Current Assets	15,897,000	15,557,000	13,232,000	12,458,000
Other Non Current Assets	252,000	204,000	242,000	260,000
Goodwill And Other Intangible Assets	14,066,000	13,865,000	11,735,000	11,391,000
Other Intangible Assets	3,454,000	3,446,000	2,747,000	2,750,000
Goodwill	10,612,000	10,419,000	8,988,000	8,641,000
Net PPE	1,579,000	1,488,000	1,255,000	807,000
Accumulated Depreciation	-1,191,000	-1,017,000	-870,000	-780,000
Gross PPE	2,770,000	2,505,000	2,125,000	1,587,000
Construction In Progress	163,000	141,000	105,000	78,000
Machinery Furniture Equipment	1,621,000	1,445,000	1,334,000	945,000
Buildings And Improvements	794,000	733,000	567,000	461,000
Land And Improvements	192,000	186,000	119,000	103,000
Current Assets	7,012,000	10,029,000	6,738,000	5,649,000
Other Current Assets	492,000	511,000	420,000	349,000
Prepaid Assets				349,000	267,000
Inventory	2,095,000	1,876,000	1,616,000	1,332,000
Inventories Adjustments Allowances	-270,000	-236,000	-209,000	-196,000
Finished Goods	288,000	290,000	226,000	210,000
Work In Process	555,000	508,000	455,000	359,000
Raw Materials	1,522,000	1,314,000	1,144,000	959,000
Receivables	1,617,000	1,381,000	1,230,000	967,000
Accounts Receivable	1,617,000	1,381,000	1,230,000	967,000
Allowance For Doubtful Accounts Receivable	-25,000	-32,000	-31,000	-35,000
Gross Accounts Receivable	1,642,000	1,413,000	1,261,000	1,002,000
Cash Cash Equivalents And Short Term Investments	2,808,000	6,261,000	3,472,000	3,001,000
Cash And Cash Equivalents	2,808,000	6,261,000	3,472,000	3,001,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	1,816,000	1,880,000	1,236,000	829,000
Repurchase Of Capital Stock	-500,000	0	0	-912,000
Repayment Of Debt	-6,272,000	-9,353,000	-9,915,000	-275,000
Issuance Of Debt	11,345,000	14,325,000	9,742,000	0
Capital Expenditure	-222,000	-165,000	-139,000	-119,000
Interest Paid Supplemental Data	1,481,000	1,158,000	1,160,000	1,057,000
Income Tax Paid Supplemental Data	640,000	539,000	260,000	220,000
End Cash Position	2,808,000	6,261,000	3,472,000	3,001,000
Beginning Cash Position	6,261,000	3,472,000	3,001,000	4,787,000
Effect Of Exchange Rate Changes	4,000	14,000	12,000	-33,000
Changes In Cash	-3,457,000	2,775,000	459,000	-1,753,000
Financing Cash Flow	-4,900,000	3,171,000	-16,000	-2,148,000
Cash Flow From Continuing Financing Activities	-4,900,000	3,171,000	-16,000	-2,148,000
Net Other Financing Charges	-10,000	-8,000	-20,000	-2,000
Proceeds From Stock Option Exercised	166,000	245,000	215,000	132,000
Cash Dividends Paid	-9,629,000	-2,038,000	-38,000	-1,091,000
Common Stock Dividend Paid	-9,629,000	-2,038,000	-38,000	-1,091,000
Net Common Stock Issuance	-500,000	0	0	-912,000
Common Stock Payments	-500,000	0	0	-912,000
Net Issuance Payments Of Debt	5,073,000	4,972,000	-173,000	-275,000
Net Short Term Debt Issuance	238,000	137,000	0	0
Short Term Debt Payments			0	-200,000	-200,000
Short Term Debt Issuance	238,000	137,000	0	0
Net Long Term Debt Issuance	4,835,000	4,835,000	-173,000	-275,000
Long Term Debt Payments	-6,272,000	-9,353,000	-9,915,000	-275,000
Long Term Debt Issuance	11,107,000	14,188,000	9,742,000	0
Investing Cash Flow	-595,000	-2,441,000	-900,000	-553,000
Cash Flow From Continuing Investing Activities	-595,000	-2,441,000	-900,000	-553,000
Net Other Investing Changes	46,000	71,000	1,000	3,000
Net Business Purchase And Sale	-419,000	-2,347,000	-762,000	-437,000
Sale Of Business			1,000	3,000	259,000
Purchase Of Business	-419,000	-2,347,000	-762,000	-437,000
Net PPE Purchase And Sale					24,000
Sale Of PPE					24,000
Capital Expenditure Reported	-222,000	-165,000	-139,000	-119,000
Operating Cash Flow	2,038,000	2,045,000	1,375,000	948,000
Cash Flow From Continuing Operating Activities	2,038,000	2,045,000	1,375,000	948,000
Change In Working Capital	-558,000	-302,000	-431,000	-291,000
Change In Other Working Capital	-94,000	-62,000	168,000	58,000
Change In Other Current Assets	-55,000	-60,000	-44,000	-56,000
Change In Payables And Accrued Expense	-41,000	8,000	-82,000	31,000
Change In Accrued Expense	-79,000	19,000	-94,000	-27,000
Change In Interest Payable	23,000	60,000	-45,000	-21,000
Change In Payable	38,000	-11,000	12,000	58,000
Change In Account Payable	38,000	-11,000	12,000	58,000
Change In Tax Payable			168,000	58,000	-63,000
Change In Income Tax Payable			168,000	58,000	-63,000
Change In Inventory	-156,000	-104,000	-261,000	-134,000
Change In Receivables	-212,000	-84,000	-212,000	-190,000
Changes In Account Receivables	-212,000	-84,000	-212,000	-190,000
Other Non Cash Items	8,000	84,000	65,000	-2,000
Stock Based Compensation	157,000	217,000	157,000	184,000
Deferred Tax	-10,000	10,000	3,000	-22,000
Deferred Income Tax	-10,000	10,000	3,000	-22,000
Depreciation Amortization Depletion	367,000	312,000	268,000	253,000
Depreciation And Amortization	367,000	312,000	268,000	253,000
Amortization Cash Flow	204,000	163,000	139,000	137,000
Amortization Of Intangibles	204,000	163,000	139,000	137,000
Depreciation	163,000	149,000	129,000	116,000
Operating Gains Losses		9,000	14,000	-41,000	-58,000
Pension And Employee Benefit Expense	0	0	0	6,000
Net Foreign Currency Exchange Gain Loss	10,000	20,000	14,000	-40,000
Gain Loss On Sale Of Business	-10,000	-11,000	0	-7,000
Net Income From Continuing Operations	2,074,000	1,715,000	1,299,000	867,000

These metrics estimate what TransDigm Group Incorporated is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

N/A

Margin of Safety

—

Market Cap ÷ Company Value

-2.01

P/B Ratio

-6.74

Warren's Owner Earnings

$2.7B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$8.8B

vs > $1.5B revenue

✅ Strong Financial Condition

3.21x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

✅ Earnings Growth

+139.4% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

37.2x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

N/A (negative book value)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-452.88

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

N/A

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	10.7%	9.6%	10.7%	13.7%	N/A
Repurchase of Capital Stock	-$500M	$0M	$0M	-$912M	N/A
Free Cash Flow	$1.8B ▼	$1.9B ▲	$1.2B ▲	$829M •	N/A •
Warren's Owner Earnings	$2.7B	$2.2B	$1.7B	$1.2B	N/A

Peers & Industry Comparison

Aerospace & Defense — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
TDG	$1,155.86	$65.3B	37.23	60.1%	23.5%	$8.8B
BA Boeing Company (The)	$221.52	$174.6B	87.9	4.8%	2.5%	$92.2B
LMT Lockheed Martin Corporation	$517.57	$119.3B	25.1	9.9%	6.4%	$75.1B
RTX RTX Corporation	$173.31	$233.4B	32.6	20.2%	8.0%	$90.4B
NOC Northrop Grumman Corporation	$569.93	$80.9B	17.9	20.5%	10.8%	$42.4B
GD General Dynamics Corporation	$348.74	$94.3B	22.0	15.2%	8.1%	$53.8B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.40%

Low — management has little skin in the game

Return on Assets (ROA)

9.1%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$500M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+20.6% YoY

Debt is growing — management is leveraging up

Leadership Team

Michael Lisman

CEO, President & Director

Age 41

Pay: $28,530,024

1.376% of net income

Sarah Wynne

Chief Financial Officer

Age 52

Pay: $11,399,291

0.550% of net income

Joel Reiss

Co-Chief Operating Officer

Age 55

Pay: $31,053,671

1.497% of net income

Patrick Joseph Murphy

Co-Chief Operating Officer

Age 52

Pay: $13,843,634

0.667% of net income

Kevin McHenry

Executive Vice President

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	12.04%	6,799,539
Capital International Investors	11.59%	6,544,423
Blackrock Inc.	7.61%	4,298,292
Capital World Investors	7.00%	3,954,512
Capital Research Global Investors	4.39%	2,476,661
State Street Corporation	4.35%	2,456,186
Principal Financial Group, Inc.	3.84%	2,166,523
FMR, LLC	2.87%	1,619,293

Risk Analysis

Beta (Market Risk)

0.88

Low volatility — more stable than the market

Short Interest

2.4% of float

Low short interest — market is not heavily bearish

Current Ratio

2.75x

Strong liquidity — Graham approved

52-Week Price Range

Low: $1,123.61 Current: $1,155.86 High: $1,623.83

Currently at 6% of 52-week range

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