TransDigm (TDG) Stock Analysis

November 11, 2026

This is a peer-relative look at TransDigm (TDG): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for TransDigm (TDG)
Profile Item	TDG
Name	TransDigm Group Inc.
Country/Region	United States
GICS Sector	Industrials
GICS Industry Group	Capital Goods
GICS Industry	Aerospace & Defense
GICS Sub-Industry	Aerospace & Defense
Market Capitalization	66.17 billion USD
Currency	USD
Exchange	NYSE
Listing Date	March 15, 2006
Security Type	Common Stock

Price Performance

Cumulative Growth

TDG

GSPC

TransDigm (TDG) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for TransDigm (TDG) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for TransDigm (TDG) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

TransDigm (TDG) metric values compared with Capital Goods industry-group medians
Metric	Current stock: TDG	Industry group median
Total Return (1Y)	-3.42%	6.84%
Total Return (3Y, Annualized)	14.26%	17.66%
Total Return (5Y, Annualized)	16.86%	9.09%

Risk Profile

Drawdown History

TDG

GSPC

TransDigm (TDG) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for TransDigm (TDG) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

TransDigm (TDG) metric values compared with Capital Goods industry-group medians
Metric	Current stock: TDG	Industry group median
Volatility (1Y, Annualized)	28.03%	44.38%
Beta (5Y)	0.94	1.19
Max Drawdown (5Y)	-29.05%	-49.95%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. TDG is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

TransDigm (TDG) metric values compared with Capital Goods industry-group medians
Metric	Current stock: TDG	Industry group median
Sharpe Ratio (1Y)	-0.27	0.06
Sortino Ratio (1Y)	-0.38	0.09

Profitability

ROE (TTM)

No usable ROE is available for TransDigm (TDG) this period, so the shareholder-equity return read is skipped.

TDG

Capital Goods industry group

Group distribution

Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%
TDG: --

Largest peers

GEV: 93.04%
CAT: 56.14%
GE: 50.17%
DE: 18.24%
RTX: 12.85%
TDG: --
BA: --

TransDigm (TDG) doesn’t report ROE this period; the box shows the Capital Goods group’s distribution and the dots its largest members.

Net Margin (TTM)

TransDigm (TDG) keeps 21.28% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

TDG

Capital Goods industry group

21.28%

Group distribution

Max: 27.47%
TDG: 21.28%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Largest peers

GEV: 23.54%
TDG: 21.28%
GE: 17.31%
CAT: 15.21%
DE: 10.17%
RTX: 8.75%
BA: 8.07%

Where TransDigm (TDG) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

TransDigm (TDG) turns 46.01% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.

TDG

Capital Goods industry group

46.01%

Group distribution

TDG: 46.01%
Max: 36.60%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Largest peers

TDG: 46.01%
CAT: 20.19%
GE: 18.49%
RTX: 15.54%
DE: 13.37%
GEV: 12.77%
BA: 0.30%

Where TransDigm (TDG) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

TransDigm (TDG) metric values compared with Capital Goods industry-group medians
Metric	Current stock: TDG	Industry group median
ROE (TTM)	--	12.12%
ROA (TTM)	11.82%	5.29%
Net Margin (TTM)	21.28%	6.30%
Operating Margin (TTM)	46.01%	11.12%
Gross Margin (TTM)	59.82%	29.63%

Growth

Revenue Growth

TransDigm (TDG) grew revenue 11.22%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

TransDigm (TDG): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

TransDigm (TDG) grew earnings per share 25.21%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

TransDigm (TDG): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

TransDigm (TDG) metric values compared with Capital Goods industry-group medians
Metric	Current stock: TDG	Industry group median
Revenue Growth (YoY)	11.22%	8.11%
Revenue Growth (3Y CAGR)	17.61%	6.45%
EPS Growth (YoY)	25.21%	5.45%
EPS Growth (3Y CAGR)	33.78%	7.15%

Financial Strength

Current Ratio (MRQ)

TransDigm (TDG) has current ratio of 3.02, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

TDG

Capital Goods industry group

3.02

Group distribution

Max: 5.22
TDG: 3.02
Q3: 2.95
Median: 2.08
Q1: 1.43
Min: 0.36

Largest peers

TDG: 3.02
DE: 2.13
CAT: 1.42
BA: 1.13
RTX: 1.05
GE: 0.98
GEV: 0.83

Where TransDigm (TDG) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

No usable debt-to-equity ratio is available for TransDigm (TDG) this period, so the balance-sheet leverage read is skipped.

TDG

Capital Goods industry group

Group distribution

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
Min: 0.00
TDG: --

Largest peers

BA: 7.39
DE: 2.30
CAT: 2.10
GE: 1.16
RTX: 0.55
GEV: 0.30
TDG: --

TransDigm (TDG) doesn’t report debt-to-equity ratio this period; the box shows the Capital Goods group’s distribution and the dots its largest members.

Financial Strength Metrics

TransDigm (TDG) metric values compared with Capital Goods industry-group medians
Metric	Current stock: TDG	Industry group median
Current Ratio (MRQ)	3.02	2.08
Debt / Equity (MRQ)	--	0.60
Net Debt / EBITDA	6.03	1.78

Dividends

Dividend Yield (TTM)

TransDigm (TDG) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

TDG

Capital Goods industry group

0.00%

Group distribution

Max: 2.66%
Q3: 1.14%
Median: 0.24%
TDG: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 1.47%
CAT: 1.13%
DE: 0.98%
GE: 0.56%
GEV: 0.26%
TDG: 0.00%
BA: 0.00%

Where TransDigm (TDG) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

TransDigm (TDG) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

TDG

Capital Goods industry group

0.00%

Group distribution

Max: 67.39%
Q3: 28.02%
Median: 6.86%
TDG: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 45.85%
DE: 36.02%
CAT: 24.18%
GE: 20.23%
GEV: 4.59%
TDG: 0.00%
BA: 0.00%

Where TransDigm (TDG) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

TransDigm (TDG) metric values compared with Capital Goods industry-group medians
Metric	Current stock: TDG	Industry group median
Dividend Yield (TTM)	0.00%	0.24%
Dividend Payout Ratio (TTM)	0.00%	6.86%

Valuation

P/E Ratio (TTM)

TransDigm (TDG) trades at P/E ratio of 36.31, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

TDG

Capital Goods industry group

36.31

Group distribution

Max: 59.38
TDG: 36.31
Q3: 35.92
Median: 25.41
Q1: 19.47
Min: 3.03

Largest peers

DE: 37.33
GE: 36.94
TDG: 36.31
RTX: 30.82
CAT: 21.92
GEV: 20.32
BA: 17.89

Where TransDigm (TDG) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

TransDigm (TDG) trades at 6.61 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

TDG

Capital Goods industry group

6.61

Group distribution

Max: 7.54
TDG: 6.61
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

Largest peers

TDG: 6.61
GE: 6.38
GEV: 4.65
DE: 3.78
CAT: 3.29
RTX: 2.66
BA: 1.45

Where TransDigm (TDG) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

TransDigm (TDG) has negative P/B ratio of -6.74, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

TDG

Capital Goods industry group

-6.74

Group distribution

Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08
TDG: -6.74

Largest peers

BA: 20.99
GE: 19.06
GEV: 18.00
CAT: 11.90
DE: 6.47
RTX: 3.69
TDG: -6.74

Where TransDigm (TDG) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

TransDigm (TDG) metric values compared with Capital Goods industry-group medians
Metric	Current stock: TDG	Industry group median
P/E Ratio (TTM)	36.31	25.41
P/S Ratio (TTM)	6.61	2.15
P/B Ratio (MRQ)	-6.74	3.12
Free Cash Flow Yield (TTM)	2.20%	3.03%