TransDigm Group Incorporated (TDG)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

TransDigm looks like a high-quality but richly priced aerospace supplier. In fiscal Q3 2026, the quarter ended 2026-06-27, it reported revenue of $2.7B, net income of $539.0M, and diluted EPS of $9.39; against fiscal Q3 2025, revenue was $2.2B, net income $492.0M, and EPS $8.47, so sales grew strongly while profit and EPS grew more modestly. Full-year figures show the same pattern: FY2025 revenue was $8.8B, net income $2.1B, and EPS $32.08, up from $7.9B, $1.7B, and $25.62 in FY2024. The computed Lynch category is FAST GROWER, with 24.3% annual profit growth over five years and 11.6% revenue growth, though recent profit growth has slowed. The financial picture is mixed. ROCE of 11.82% is respectable but not exceptional, and the Piotroski F-Score of 6/9 is only fair. Altman Z-Score of 1.02 suggests balance-sheet risk that Graham would flag. Cash generation is real—TTM FCF of $1.9B—but the 3.1% FCF yield is thin. At the 2026-10-26 close of $1,129.70, FairStock’s P/E is 34.26, PEG 3.51, and EV/EBITDA 18.17. I would call the price expensive relative to current earnings and cash flow; the market is already paying for continued growth. A good business can be a poor investment if bought too high.

In plain English: TransDigm makes parts and systems for aircraft. In its latest reported quarter, sales and profit rose from a year earlier, and sales and profit have grown over the last few years. The business looks strong and profitable, but the share price looks high compared with the profit and cash it produces.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-27) · fiscal Q2 2026 10-Q (period ended 2026-03-28) · fiscal Q1 2026 10-Q (period ended 2025-12-27) · fiscal Q3 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer