TDGTransDigm Group
Is the business good?
The checks split: margins widening, but thin cash backing (0.6×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TDG?
TransDigm Group earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 9.0 points above what the capital costs: growth creates value
- Operating margin
- 46%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q3 2026
- Cash conversion
- 0.61×
Cash conversion · 0.68× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −1.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 34% |
| FY2021 | 35% |
| FY2022 | 41% |
| FY2023 | 44% |
| FY2024 | 44% |
| FY2025 | 47% |
Details›
- Gross margin12 months to Q3 2026
- 60%
- Operating margin12 months to Q3 2026
- 46%
- Net margin12 months to Q3 2026
- 21%
- Free cash flow margin
- 19%
- Revenue, trailing twelve months
- $10.0B
- Free cash flow, trailing twelve months
- $1.93B
- Net income, trailing twelve months
- $2.13B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 18%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
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